Contract Laws
Ashley Marie Allen
Southern New Hampshire University
04/18/2021
The contract is a legal promise. It may be a promise to do something or not to do
anything. To enter into a contract, two or more people are mutually agreed, one of whom makes
an offer and the other accepts it. (Taylor, And)
There are four elements of a contract, to be an offer, acceptance, consideration
and capacity, in order to have a valid contract. The first step to a contract is an announcement.
One person offers a service, sells a product, sells a trade or carries out another business. A bid
will be valid until it is serious and the offeror has not revoked it. The individual to whom the
offer was made must now accept the original offer terms and conditions. The counter-offer is a
conditional acceptance or inclusion of additional conditions. A counter offer effectively rejects
the original offer and re-starts the procurement process. An acceptance must be serious just as
with an offer. Unless a value is exchanged, contracts are not binding. Consideration may be in
the form of money, a promise to perform an act or to refrain from acting. The whole purpose to
conclude a contract is the element of consideration. Capacity is the four elements. Each person
should reasonably assume that both the legal right and the capacity of the other person to fulfill
the end of a contract. At the time of agreement, they must also be able to fully understand their
obligations. (Kloss, J. n.d) This is an acceptance contract because Dave was already expanding
the inventory and needing the space. The landlord Lou allowed him to do it.
Friendly Dawgs has the right to expand its business with respect to the potential
rights, because nothing specific about growth was mentioned in the lease. Friendly Dawg
regularly paid for rents and also has a greater right than Sunshine Yoga to have living animals.
