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Ag Business

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A social agreement between 2 or more parties which sometimes may not be legal A legally binding agreement that is enforceable by law. Definition: AgreementDefinition: Contract WHAT IS A CONTRACT

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Offer Acceptance Legal Purpose Mutuality of Obligation Certainty of Subject Matter Consideration Competent parties 7 ELEMENTS OF A CONTRACT

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Definition: offerer makes a proposal to another party. OFFER Offerer- The person who is making the offer

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ACCEPTANCE Definition: When an offeree agrees to all the terms and conditions of the offer. Offeree: The person who is choosing to accept or decline the offer

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Definition: The objective of the contract must consist of legal activities. LEGAL PURPOSE

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Defintion: Both parties understand and assent to the objectives of contract. MUTUALITY OF OBLIGATION Meeting of the Minds

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Definition: The obligations of the contract must be clear so that a court of law can understand both parties obligations. CERTAINTY OF SUBJECT MATTER

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Definition: There must be benefit or detriment to one or both parties. CONSIDERATIONS

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Definition: The law generally presumes that everyone has the capacity to contract. COMPETENT PARTIES HOWEVER* You are not considered competent if you are under 18 Who signs for minors?

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1.)Make a contract with a business owner in class. 2.) Incorporate all 7 elements into your contract. 3.) HINT*-go through each slide of notes and make sure you have each element incorporated into your contract. 4.) Both parties must sign and date their contract. MAKE OR ACCEPT AN OFFER