What makes a personal contract legally binding?
As inhabitants of the United States, people cannot avoid making contracts on a regular basis. As regular contract makers, people should know the component parts of a contract and what makes the contract binding.Mutual AssentBoth parties agree to identical terms and conditions of the contract. To be legally binding, a contract must be based on both parties’ mutual assent; offers, acceptance and consideration demonstrate the parties’ mutual assent.OfferA valid offer to enter into a contract exists when a reasonable person would objectively believe that an offer has been made. The person who makes the offer is the offeror.AcceptanceThe offeree is aware of the offer, intends to accept the offer and takes steps to accept the offer, according to the terms of the offer.ConsiderationConsideration consists of a bargained-for exchange of items, services or money for the benefit of the contracting parties.Legally Binding ContractMichael offers to sell a sparkly glove to Janet for $5,000. Janet ac
