Characteristics of a Simple Contract
A contract is a lawfully binding agreement made between two or more persons, by which privileges are attained by one or more persons to operate on behalf of the other or others.
For a contract to be valid it must contain the following features:
– Offer and acceptance which must be done verbally or in text, or it may be inferred from the behavior of the parties.
– Form or consideration: the serious rules and regulations of a contract must be in attendance.
– Capacity of the parties: in observance of the law the parties must have the authority to bind themselves in a contract.
– Legality: the subject matter of the contract must not be different to the law.
– Possibility: performance of the contract must be achievable. However, impracticality does not necessarily invalidate a contract.
– Genuineness of the consent of the parties: there must be harmony between the parties and each party must have
entered into the contract of his or her own freedom.
– Good faith: there must not be unwarranted pressure or force, faults, deception or distortion.