It is important to understand the characteristics of a valid contract so one does not get cheated in anyway or lose money.
There are four main elements that are required in order to ensure that a contract is valid and seems to be a good contract. The four main elements are offer, acceptance, intention of legal consequences, and consideration. The offer is the one that grabs the attention of consumers. In contracts, the offer must be clear and accurately described as well as honest and has an intention. By doing this, it lets consumers know what they’re getting into; however, it also has to be good enough to grab the consumer because it’ll make them want to know more about the contract. Once the offer is down and both parties know the deal, there should be a mutual acceptance; since they know what’s going on, they should know that there aren’t any new terms that’ll come up in the contract and that they can either accept it or not accept it. Again, just like the offer, the acceptance should be clear and precise so there’s no confusion and most …show more content…
In the case scenario soft drink company advertise that they will offer harrier jet to the customer who will revived seven million company points. It onl7y possible when customer drink 190 drinks at daily basis. It will take 100 years to complete the offer. On the other hand, company is also purchase the points against the cents. In that scenario customer have to see first that company is serious. From the theory of objectivity company will held to make the offer enforceable if company subjectively was only joking. Although agreement is made orally but they believe that oral contract have no legal worth. However, the reality is, such contract is enforceable, hitherto, does not fall within the statute of fraud. Furthermore, contract is made through an advertisement with the customers. All the agreement that are social in nature cannot be bind legally they are presumed. However, at the same item commercial agreement are presumed to be intended as biding contract. Such presumptions can easily be disproved in the court with presenting contrary evidence (Riley, 2015). As the company said they are only joking not serious about the offer that is why valid agreement present to support the scenario of the