Business Law

Contract – An agreement that is enforceable in a court of law

A contract is legally binding only when it contains certain factors:

Capacity – The legal capability of entering into an agreement; some individuals, such as minors, and mentally incompetent or intoxicated persons, are not seen in law as having the capacity to enter into a contract.

Legality – The purpose must be neither criminal nor against the public good.

Consensus – There must be complete agreement, or consensus, among the participants.

Intention – The intent must be that legally enforceable obligations will result from the agreement.

Consideration – All parties must offer a consideration, which is the price paid for a promise, something of value of promised or paid that is taken to indicate that the person has considered the agreement and consents to be bound by it.

Capacity includes: minors, mentally incompetent people and individuals who are intoxicated.

Age of Majority – The age...