What is a contract?

A contract is an agreement between two or more parties that creates a legal obligation for the parties involved. A contract can be written, oral, or implied. In Texas, a contract is an agreement between two or more parties that establishes an enforceable legal relationship. Under Texas law, a valid contract must include three essential elements: offer, acceptance, and consideration. The first element, offer, occurs when one party expresses a willingness to enter into the contract and the other party accepts. This offer must be specific and include the terms of the contract. The second element, acceptance, occurs when the other party agrees to the offer. Acceptance may be express or implied, depending on the terms of the offer. The third element, consideration, is the exchange of something of value by each party. This can include money, services, or goods. A contract must also be in writing to be enforceable in Texas. All the elements of the contract must be in writing, including the names of the parties, the date of the contract, and the terms and conditions of the agreement. Once these elements are in place and both parties have agreed to the contract, then the parties are legally bound by the agreement. Any violation of the contract is a breach of contract, which can result in civil action being taken against the breaching party.

Related FAQs

What is a performance bond?
What is an executory contract?
What is an implied covenant of good faith?
What is the Statute of Limitations?
What is the Statute of Frauds applicable to?
What is the difference between a covenant and a contract?
What is the effect of an ambiguity in a contract?
What is the effect of a modification of a contract?
What is equitable estoppel?
What is the effect of a partial payment?

What is a contract?

Related FAQs

Related Blog Posts