It is important for our team to have a clear focus on what should be done when signing a contract, given that we have identified our first client. Understanding these elements will make it easy for us to avoid any future litigation that may arise due to the poor execution of the contract. The following are the six elements of a contract, and each of them is very critical in developing a legally binding agreement with the client.
The first element of a contract is an offer. An offer refers to what one party is willing to give in exchange for a product or a service that is expected from the other party. Any of the two parties can make an offer based on the prevailing circumstances. A good example can be a client offering a legal firm a certain amount of money in exchange for the legal services that are to be offered. Sometimes there may be a counteroffer, especially in case one party feels that the value of the offer made is below the value of the product or service to be delivered.
In case the other party is convinced that the offer made is fair enough, then there will be an acceptance. Acceptance refers to commitment by the second party to deliver goods or services as per the terms and conditions stated in the offer. For instance, if a client made an offer to pay a firm Rs250,000 for the services that we shall deliver, and then if our firm communicates back to the firm agreeing to the terms, it shall be considered an acceptance. Acceptance can be communicated orally or verbally.
The offer and the acceptance can only be considered legally binding if they involve the exchange of goods or services which are of value. Both parties must be seen to benefit from the offer and acceptance made
The entire process of making an offer and acceptance should be based on mutual obligation. It should not arise from mistakes, fraud, or any other form of coercion. None of the parties should feel forced to be a party to the contract. For instance, in case our firm uses any form of threat or blackmail to force the client to make a generous offer, then if the client can prove that such were the circumstances under which the contract was signed, then it can be nullified. The agreement should be made voluntarily.
Competancy and Capacity
The parties involved in signing the contract must have competency and capacity. It means that our client and members of our team who shall be involved in this contract should be of legal age. They should also be of sound mind when signing the contract. The parties must have the capacity to be legally responsible for their actions.
The contract must be made in writing or orally as long as future references can be retrieved. In most cases, the contract is written and signed by both parties for future reference. If it is made orally, there must be a neutral person who acts as a witness in the entire process
All these six elements of a contract must be present for it to be admissible in a court of law.
I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.
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