Contract One of the Most Common Forms

¶ … Contract One of the most common forms of legal agreements is contracts. These are obligations that allow both parties to receive specific benefits based upon meeting certain conditions. In the last few years, they have become increasingly common as way to spell out the requirements for everyone to follow. To fully understand how this occurs requires carefully examining an example of contract. This will be achieved by looking the five elements and if the results were successful.

Together, these factors will illustrate how this is used to create a foundation for conducting business and meeting different obligations. (Rogers, 2012) An Example Contract and the Five Elements The basic contract that was entered into was a rental agreement. It involved the individual leasing a three bedroom and two bathroom house. The monthly rent was a $1,000.00 per month. The landlord required one month of security and a $500.00 damage deposit. This means the tenant had to provide the property owner with a total of $2,500.00 at the signing of the lease.

(Rogers, 2012) Inside, it defines what actions are considered to be legal, potential violations and any kind of sanctions for possible breaches. Moreover, it contains the five essential elements to include: legally competent parties, an offer / acceptance, mutual agreement, consideration and mutual obligations. These factors clearly identify the responsibilities of both parties by requiring them to follow the basic provisions of the contract. (Rogers, 2012) Legally competent parties is when both sides must be at least 18 years old and of sound mind.

In a rental agreement, this requires that each party meets these guidelines in order to enter any kind of negotiations. When this happens, they can move forward and begin presenting their offer. (Rogers, 2012) (Cortesi, 2004) An offer is a promise which is made depending upon a conditional act. It is a willingness to enter an agreement for the benefit of both parties. This takes place with them proposing specific actions in return for some kind of benefit.

In the case of a rental contract, this is happening with the landlord allowing the tenant to lease their property in exchange for a certain amount of rent. (Rogers, 2012) (Cortesi, 2004) Acceptance is when the other party agrees to the offer and is willing to enter the agreement. This takes place when they will receive the offer and notify the other party of their intentions to enter the contract.

In the case of a rental agreement, the tenant agrees to: rent the property for specified period of time, follow the provisions of the lease and pay the stated monthly fee. (Rogers, 2012) (Cortesi, 2004) Mutual agreement is when both parties consent to these actions and decide to form a contract. This occurs through each side wanting to meet the different provisions and have a willingness to follow these obligations.

As a far as rental agreements are concerned, this takes place when they will decide to abide by these guidelines and meet the basic provisions of the contract. (Rogers, 2012) (Cortesi, 2004) Consideration is a promise that is made by both parties to meet the various obligations. In a lease, this is taking place with each side offering to engage in specific actions. The tenant will agree to take care of the property and provide the landlord with the monthly payment.

While the property owner, will make repairs and deal with any kind of issues impacting its maintenance. (Rogers, 2012) (Cortesi, 2004) Mutual obligations are when the contract has become legally binding. This means.