By the Business Attorneys at Garg & Associates, PC, serving The Woodlands, Spring, Houston, Conroe, Humble, Kingwood, Tomball, Cypress, Huntsville, Westchase, Southwest, Sugar Land, West Oaks, Alief, Memorial, River Oaks, Stafford, Katy, and Missouri City.

What do you need to form a valid enforceable contract?

There are three elements for a contract to be legally binding: offer, acceptance and consideration.  All three elements must be present.  There must be mutual assent: offer and acceptance.  When Boy gives Girl an offer, he intends to be held to a commitment if that offer is accepted.  In the same manner, Girl must accept Boy’s offer by either promising to do whatever is required of her pursuant to Boy’s offer or Girl must perform under the provisions of the agreement.  Only when Boy and Girl agree to be bound by their respective promises is there mutual assent. 

Last, there must be consideration.  Consideration is something of value given in exchange for performance or a promise of performance – something bargained for.  If Boy promises to pay Girl $475 and a bag of chips for painting Boy’s house, the consideration is the $475 and a bag of chips.  Without this consideration, Girl painting Boy’s house would be a gift.

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