BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Offer, counter offer, acceptance and consideration.
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Acceptance, consideration, offer and signature.
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Intention to create legal relations, offer, reasonableness and acceptance.
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Consideration, offer, intention to create legal relations and acceptance.
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Detailed explanation-1: -To make a contract enforceable, legal and binding, there must be an intention to create legal relations. In the absence of intention, the parties cannot sue each other. The contract may become a mere promise if the intention to create legal relations is absent.
Detailed explanation-2: -The basic elements required for the agreement to be a legally enforceable contract are: mutual assent, expressed by a valid offer and acceptance; adequate consideration; capacity; and legality. In some states, elements of consideration can be satisfied by a valid substitute.
Detailed explanation-3: -A contract is a legally binding promise (written or oral) by one party to fulfil an obligation to another party in return for consideration. A basic binding contract must comprise four key elements: offer, acceptance, consideration and intent to create legal relations.
Detailed explanation-4: -In its simplest form, intention to create legal relations means that the parties must intend to enter into a legally binding arrangement in which the rights and obligations of the agreement are enforceable.