Describe the elements required to form a binding contract. Explain how a legally binding contract can be creat

Question

Describe the elements required to form a binding contract. Explain how a legally binding contract can be created online. What are the pros and cons of an online contract?

Answer 1

a private contract can have all the terms, recitals and clauses the parties want it to have, as long a s they are legal. anything that is signed by two parties (private or public, individuals or companies) automatically binds to what is established in the contract. the problem online is that the parties have to be duly identified (do not make an agreement with a web page, an e-mail address or anybody who is not identified with an ID, address, representative, etc) a signed paper is a binding contract,and then , depending of the kind of contract you want to sign, there are other elements. i.e. in a purchase agreement you'd have to identify the thing you want to purchase, the price, whether that thing is subject to any burden...etc.  

Answer 2

A legally binding contract needs the following:

1 an offer

2 an acceptance of that offer

3 consideration (something of value given in exchange for the other party to be bound by the terms in the contract)

4. the parties to the contract must be legally able to execute binding contracts.

A legally binding contract can be written, spoken (oral), or implied (putting money into a vending machine).

When a person buys a house, the contract  states that Party A (who has title to the property) agrees to sell to party B a property (the home which is clearly described and identified). The contract states the total price to be paid and the purchaser pays a deposit at the time of exchange of contracts.  Completion of the contract takes place during settlement ( usually 30 days later) when the purchaser pays the balance of the purchase price stated in the contract and the seller signs over title to the property to the purchaser.