American InterContinental University
BUSN310- Individual Project Five
Riana Fonseca
February 2, 2012

The elements of a contract are having parties make an offer, there is a legal purpose and there is an acceptance then a consideration. In order to have a contract, there must be some people to make a contract with, whether it is person-to-person, business-to-business or person to business, there must be two collective parties to offer and a party to accept or deny the contract. A legal purpose simply means as the name suggests, that the contract’s purpose for being written or agreed on abides by the law of the state, which it was agreed on in. There must be an acceptance saying that the party accepts everything written in the contract, which is when the party signs the document to exhibit their agreement. The consideration is when the action is about to be performed however; the parties need to exchange something of value to ensure that the contract is followed out. This is most often money, goods, land, or anything that the party seems worth the contract.
The objective theory of contracts is defined as a legal binding agreement between two or more parties. The agreement is punishable by law and has consequences to not following through with the contract. It is to ensure that people keep their half of the agreement. Without contracts many people would argue their way out of paying rent, move without notice or share private information that can harm others. There are many boundaries that contracts puts up mentally in a person’s mind to ensure that they go about doing what they are supposed to do. Not following through with a contract can lead to a case in court, messing up credit scores or fines. Often times when a tenant tries to move out before their contract is up with a landlord, it affects their credit score negatively and they would most likely need to pay a fine.
When a company posts a contest on a website or on a commercial they are legally making an offer, an agreement, a legal purpose for a customer to accept. Just because the goal of the contest is to what they believe is unattainable, if a customer should reach the goal then they are legally supposed to reward the customer with whatever prize they offered. A customer accepted the challenge so they should be rewarded for their actions.
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