8.3 Elements of a Valid Contract
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Five elements to a valid contract
1. Offer 2. Acceptance 3. Consideration 4. Capacity 5. Lawful Purpose
Consideration
In return for promises made, the other party will incur a loss, detriment, or change of legal position.
Capacity
Agreements will not be enforced if the parties do not have the capacity to understand the subject matter, nature, and consequences of the contract promises they make.
Offer and Acceptance
Example: Yvette offers to sell her house to Clifford for $200,000, and Clifford accepts that offer.
Lawful Purpose
The contract cannot break the law.
