Elements of a Contract for a business - Research Paper Example

Contracts make clear what each party’s expectations are, and what each party is ready to give in return for the expected results. Elements of a business contract are many e.g. the Parties of a contact, which are the entities that are involved in the agreement. There is also the Consideration, which states and explains what the involved parties stand to gain from the agreement or arrangement. Terms and Conditions of business contacts do stipulate the obligations and rights of each party. Competent Parties; the parties involved must also be competent ones since a contract can be considered invalid in case it can be conveyed that a party was not mentally competent at the time of the contract agreement and signing.

A business contract has to be of or for a Legal Purpose so that it can be regarded as being valid (www.expertlaw.com). Consideration is what both parties give to the other as the approved price for the others promises. Regularly, but not a must, the consideration is the payment of cash. It can be anything valuable including the promise of not doing something, or to desist from applying some right. The payment does not need to be fair. The courts will not intercede where a party has made a hard negotiation unless unconscionable conduct, duress or fraud is involved.

If the consideration is there, then I as the former employee to the fabulous hotel will have to compensate them in one way or the other. Together with the hotel, would agree on what the compensation should be (www.smallbusiness.wa.gov.au). With in a contract, only what has been offered can be accepted. This implies that the offer has to be accepted precisely as it has been offered without conditions. If any new terms are suggested, then they are considered to be a counter offer which can be rejected or accepted.

There can be numerous offers and counter offers before an agreement is reached. Who makes the final offer is not significant;