Agreement in Express Contract: Understanding the Essentials
An express contract is a legally binding agreement between two or more parties that is explicitly stated in written or spoken words. It is a formal agreement that outlines the terms and conditions of a transaction or agreement, and the parties involved are legally obligated to fulfill the terms of the agreement. One essential element of an express contract is agreement or mutual assent, which is what this article will explore.
Agreement in an express contract refers to the meeting of minds between the parties involved in the contract. It is a crucial element that must be present for a contract to be enforceable. Simply put, an agreement is reached when both parties have come to a clear and mutual understanding of the essential terms of the contract.
For an agreement to be considered legally binding, there are three essential components that must be fulfilled: offer, acceptance, and consideration.
Offer
The offer is the first essential component of an agreement in an express contract. It is the proposal made by one party to another, detailing the terms and conditions of the contract. The offer must be clear, definite, and unambiguous. It must also be made with the intention to create a legal obligation. An offer can be terminated by revocation, rejection, or counteroffer.
Acceptance
The second essential component of an agreement in an express contract is acceptance. Acceptance refers to the agreement of the offeree to the terms and conditions set out in the offer. The acceptance must be clear, unconditional, and in response to the offer. It must also be communicated to the offeror. Silence or inaction cannot be considered as acceptance.
Consideration
The third essential component of an agreement in an express contract is consideration. Consideration refers to something of value that is exchanged between the parties involved in the contract. It can be in the form of money, goods, services, or promises. In an express contract, both parties must provide consideration, which is what makes the contract legally binding.
Conclusion
In conclusion, agreement in an express contract is a crucial element that must be present for a contract to be enforceable. It refers to the meeting of minds between the parties involved, and it is reached when both parties come to a clear and mutual understanding of the essential terms of the contract. The three essential components of agreement in an express contract are offer, acceptance, and consideration. As a professional, it is essential to ensure that all these elements are present and clearly stated in any contract for it to be valid and enforceable.