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Difference between revisions of "Making a Contract"
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===What is a meeting of the minds?=== | ===What is a meeting of the minds?=== | ||
To form a contract, the parties must come to an agreement or a “meeting of the minds” on the essential terms. The agreement is formed by one party making an offer to another party of certain terms and the other party freely indicating their acceptance of those terms. | To form a contract, the parties must come to an agreement or a “meeting of the minds” on the essential terms. The agreement is formed by one party making an '''offer''' to another party of certain '''terms''' and the other party freely indicating their '''acceptance''' of those terms. | ||
This can be done in a number of ways. It can be a conversation that results in an agreement. There may be an exchange of emails in which the parties agree on something. Or it can happen without any real formalities, as when you buy something from a store. By presenting the goods and your money to the store clerk, you are offering to buy the items, and by taking your money, the clerk is accepting your offer. | This can be done in a number of ways. It can be a conversation that results in an agreement. There may be an exchange of emails in which the parties agree on something. Or it can happen without any real formalities, as when you buy something from a store. By presenting the goods and your money to the store clerk, you are offering to buy the items, and by taking your money, the clerk is accepting your offer. | ||
The acceptance of the offer may consist of words or acts, but it must be an acceptance of the offer as made. A response to an offer that makes any material change in the terms of the offer is not an acceptance; it is a counteroffer. | The acceptance of the offer may consist of words or acts, but it must be an acceptance of the offer as made. A response to an offer that makes any material change in the terms of the offer is not an acceptance; it is a '''counteroffer'''. | ||
===What is consideration?=== | ===What is consideration?=== | ||
