Characteristics of a Contract

Introduction

In the previous lesson, we took a look at the primary elements of a contract – offer, acceptance, agreement, consideration, capacity, and legality. Every day, people enter into agreements – selling and renting property; a professional athlete negotiating a salary; a college student making an application for a student loan for college; and much more. Contracts are created in different ways. They can also assume various forms. In this microlesson, we will take a closer look at what these characteristics mean in regards to a contract.

Characteristics

Contracts are agreements that are enforced by law. Generally, the meaning of a contract is determined by looking at the intentions of the parties involved in creating the contract. In creation and execution of a contract, the contract can take on a number of different characteristics. Let’s explore those various characteristics in the presentation below.

Let's Review!

Take a moment to participate in the following activity to practice your understanding of the topics in this module. Reach out to your instructor if you have any questions.

Final Thoughts

Contracts take place every day in the lives of individuals as well as in the course of business. Businesses operate in one way or another through the application of contract law – for example, through the law of sales, employment law, agency law, property law, corporate law, and computer law – just to name a few. Regardless of the complexity of a contract, they can all include one or more of the characteristics including: valid, void or voidable; express or implied; bilateral or unilateral; or oral or written.

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