In contract law, a written contract is a legally binding agreement between two or more parties that is documented in writing. It typically includes the following elements:
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Offer: One party presents terms to another party, indicating a willingness to enter into a contract.
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Acceptance: The other party agrees to the terms of the offer without modification.
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Consideration: There must be something of value exchanged between the parties, which can be money, services, goods, or a promise to refrain from an action.
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Mutual intent to enter into a contract: Both parties must have the intention to create a legal relationship and be bound by the terms.
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Legal purpose: The contract’s purpose must be lawful and not go against public policy.
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Capacity: The parties must have the legal ability to enter into a contract, which typically requires that they be at least 18 years old and of sound mind.
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Clear terms: The written contract should clearly outline the rights and obligations of each party, ideally in a well-defined manner.
Written contracts provide evidence of the agreement and the terms that govern the relationship between the parties, making it easier to enforce in case of disputes. In many jurisdictions, certain types of contracts, such as those involving real estate or agreements that cannot be performed within a year, are required to be in writing to be enforceable under the Statute of Frauds.