Understanding the basis for filing claims in court

¶ … contract have been well established over the course of time and have remained constant during that time. Traditionally, contracts have been defined as consisting of an offer and acceptance supported by consideration but there other elements that must accompany these basic elements in order for a contract to be formed and enforceable (Perillo, 2009).

In contractual parlance, an offer is the manifestation of a party to enter into a bargain so that another party develops an understanding that his assent is being invited. Such action is the initial step in the formation of a contract and no other element can be satisfied until an offer is made. The second step in the formation of a contract is the manifestation of the acceptance. Acceptance can be relayed in any manner sufficient to advise the maker of the offer that he assents to the terms of the offer. Any attempt by the accepting party, however, to change the terms of the offer is not an acceptance, but rather, either becomes a rejection or a counteroffer which may or may not be accepted by the original individual making the offer.

The other traditional element of contract formation is consideration. Consideration is either a benefit to the promisor or a detriment to the promisee. Although ordinarily consideration involves some form of monetary exchange there is no legal requirement that money be involved. Consideration can involve either a right or some form of forebearance by either party.

Beyond the three traditional elements there are several other elements that must be present. The first of these additional elements is that the proposed terms of the contract must be for a legal purpose (Badawi, 2010). Contracts that are attempted to be formed for purposes that are illegal are not binding on the parties.

In order for a contract to be enforceable there must be a meeting of the minds between the parties as to the terms of their agreement. Determining whether there is a meeting of the minds is done through examining the communications between the parties and doing so from an objective point-of-view. Any disagreement between the parties as to whether or not a meeting of the minds has occurred is a question of fact and, as such, it is the province of the jury to make such determination. Full agreement on each and every term of the contract is not necessary for the contract to be enforceable but the essential terms must have agreed upon.

What constitutes essential terms and whether or not there are enough essential terms to constitute a contract is an issue for a court to determine. Under usual conditions the material terms of a contract must be agreed upon before a contract can be enforceable but, on occasion, there is a disagreement as to the material terms in which case the parties may be forced to seek court intervention. In any event, there must be sufficient agreement on the material terms of a contract in order for a contract to be valid and binding. Finally, all parties to a contract must possess the legal and mental capacity to enter into a contract. In the event that either form of capacity is lacking a contract cannot be formed.