There are four elements to a contract that need to be met in order for the contract to be valid agreement, the consideration, contractual capacity, and a legal object.
• The first section of a contract agreement this consists of an offer by one party, to enter a contract and the other clients need to accept the terminologies of the offer.
• The second section of a contract is the consideration, the bargained-for exchange for what each client gets in exchange for his/her the promises under the contract.
• The third section of a contract, contractual capacity, the legal ability to enter into a binding agreement. If a person is under the age of majority or a person suffers from a mental disorder, and/or that person is intoxicated they could not enter into a legal binding agreement.
• The fourth section of a contract is a legal object to in order for the contract to be enforceable, the contract
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Sam developed a mechanism that mimics a dog barking to alarm potential burglars. Sam pitches his invention to a nationwide chain store that specializes in safety products they want to sell Sam product exclusively. Sam made a verbal agreement to deliver 1,000 units to them several months ago, although never signing an official agreement. Furthermore, there was not mention what the sore is going to offer Sam in-return for the delivery of 1,000 units, nor no agreed upon price per unit. One day Sam comes home to find twos letter in his mailbox one from his landlord serving him with an eviction notice. The letter states he must vacate the promise within 30 days, because he violates the noise clause in his rental agreement with his invention was disturbing the neighbors, furthermore the landlord states that he is not allowed to conduct business in the unit he dwells in. The second letter was from the company asking Sam to deliver the 1,000 units to them