Upon completion of this module, students will be able to:
- Recognize the requirements of a valid contract.
- Classify contracts as valid, void, voidable, or unenforceable
- Explain the requirements of a valid offer and acceptance, the first important elements in a binding contract
The basis for all human interaction is the contract. Conversations, business deals, even the relations between governments are contractual in nature. People agree, receive consideration (more about that later) and they either perform or they do not. A contract can be either oral or written. Don’t use the term “verbal contract.” Ever. The correct term is “oral,” since the term “verbal” means a contract using words. But, as we will find, some contracts are unwritten, unspoken and based upon the body language of the participant. The field of contract law is also the most important in the body of law we understand as Business law. If people can’t or don’t the duties they have assumed under their contractual agreements, the whole system breaks down.