VALID CONTRACT Contract ________________: “legally enforceable agreement between two or more parties.” Contracts can be: Written _________________ Handshake Four Elements Of A Valid Contract Four Elements: 1. ______________ – initial step in forming a contract 2. Consideration – something of value exchanged by each party 3. _____________- having the legal and mental ability to enter into a binding contract 4. Legality – subject matter of the contract must not be against the law Written v. Unwritten Contract ______________ Contract: Formal, easier to use as evidence Clearly highlights _______________, conditions, and infractions of contract Must be ___________ by all parties to become valid ______________ Contract: Informal, becomes “my word v. your word” Conditions are _____________; speculation Only becomes valid through recording or video evidence Examples Of Contracts ___________________ – Property borrowed in exchange for money. Payments made monthly – failure to pay = fines & loss of property. ____________________ – Agreement between you & the credit card company. Minimum payment will be noted on bill. ____________________– Agreement between employer & employee. Include salary, hours, dress code, and infractions resulting in disciplinary actions. ____________________– Agreement between company & customer. Proof of a purchase and return policy. Violations of Contracts Lawsuits ______________ Fines or enforcement of payment Removal from company or workplace __________________