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Difference between revisions of "Making a Contract"
From Clicklaw Wikibooks
→What does “intention” to be bound mean?
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Although there must be something of value exchanged in order for a contract to be created, the exchange doesn’t need to be even. What is paid by one party need not be comparable in value to what the other party is giving. There can still be a contract, for example, when a person rents out a room in their house to a friend for a nominal amount like $10 per month. As long as there is an exchange of something of value to each party, the contract will typically be enforceable. | Although there must be something of value exchanged in order for a contract to be created, the exchange doesn’t need to be even. What is paid by one party need not be comparable in value to what the other party is giving. There can still be a contract, for example, when a person rents out a room in their house to a friend for a nominal amount like $10 per month. As long as there is an exchange of something of value to each party, the contract will typically be enforceable. | ||
===What does | ===What does "intention" to be bound mean?=== | ||
Not all agreements are contracts. For an agreement to be legally enforceable as a contract, both parties must intend to be bound by their promise. | Not all agreements are contracts. For an agreement to be legally enforceable as a contract, both parties must intend to be bound by their promise. | ||
