A contract is an agreement between competent parties that is based on mutual assent, consideration, a lawful purpose, and any legally required form. For a contract to be valid, it must include agreement between the parties, valid consideration, proper formation through offer and acceptance, capacity of the parties to contract, a legal purpose, and conformance to any required form. Contracts can be classified in different ways, such as written or oral, bilateral or unilateral, express or implied, executed or executory. According to enforceability and validity, contracts are either valid and enforceable, void and unenforceable, or voidable and rescindable by one party. Contracts also typically specify duties, representations, termination conditions, remedies,

1. A General Introduction
to Contract

2. Definition of a contract
 A contract is an agreement between
competent parties based on the
genuine assent of the parties,
which is supported by consideration
and made for a lawful objective
and in the form required by law, if
any.

3.  The basic requirements of a valid contract
1. Agreement/genuine assent (a meeting of
minds)
2. Valid consideration----mutual promise
3. Formation (offer + acceptance = contract)
4. Capacity of parties to make a contract
5. The legality of purpose or object of
contract
6. The form of contract must conform to the
legal requirements
A valid contract should include all these essential
elements and meet all these requirements.

4. Classification of contract
 Written or oral contracts
 Bilateral or unilateral contracts
 Express or implied contracts
 Executed or executory contracts
 Valid, void, voidable contracts
(P98—P104 Fundamentals of Business
Law)

5. According to their enforceability and
validity, contracts can be classified into
the following ones:
1 ___ has the necessary contractual
elements, which is enforceable and has
legal binding force.
2 ___ is not a contract at all. It has no
legal effect. No parties should be bound
by it.
3 ___ is a valid contract except that one
party is entitled to rescind it.
.

6. Typical contract provisions
 Duties and obligations
 Representations and warranties
 Termination clauses
 Remedy clauses
 Arbitration clauses