Law

What are the 3 steps in contract law?

If you are a business person, understanding the contract law will help you improve your feelings with other parties. By the way, a contract is a legally binding agreement between two or more parties. Usually, contracts are either written or made orally.

In the present world, finding people who make legal contracts all right is very rare. However, it is important to understand the elements of a contract before you are back on any transaction that will be legally binding. Read and learn the four steps to creating a legally binding contract in law.

Offer

The first step to creating a legal contract is to offer. At this level, the parties are referred to the offeror and offeree. The offeror is the person to whom the offer is made, while the offeree makes the offer. Both parties are entitled to send their offers to each other until they reach an agreement. The offers can be made via email, letter, fax, text message, or even face-to-face. It doesn’t matter how the offer is made.

Acceptance

An acceptance comprises the offers that both parties have made to each other. Acceptance must correspond with all the terms of the contract. Usually, before an offer is accepted, both parties must have made counteroffers. When there’s an acceptance, then the contract commences. The acceptance must be unequivocal and not ambiguous.

Consideration

The consideration is the valuable thing that parties exchange as part of the agreement. Usually, the consideration is either financial or in kind. The offeree often offers monetary consideration. Meanwhile, the services are offered by the offeror.

Conclusion

When both parties have agreed on terms, the next step is to reach out to a law firm to draft a legally binding contract. The contract will outline the consideration, duties of parties, duration of the contract, and execution. Also, the contract often outlines how issues will be resolved if they arise. Finally, if you want to draft a contract, you can reach out to Barbier Mehtiyeva Contract Law. You need a law firm that understand contract law to protect your interest.