Fundamental Elements of a Contract


For a contract to be valid and enforceable, it must contain four essential elements: agreement, capacity, consideration and legality. These components ensure that all parties understand their rights and obligations, establishing a solid legal basis for the contractual relationship.

For a contract to be valid, the consent of the parties must be given freely, without defects that affect the voluntariness of the agreement. Violations of consent are factors that can distort the will of one or both parties at the time of entering into the contract. The main vices that can invalidate consent are error, fraud, intimidation and violence.
Legal capacity is essential to ensure that parties who sign a contract do so voluntarily and with full knowledge of what it entails. A contract signed by a person without legal capacity may be considered void or voidable, depending on the circumstances, which protects vulnerable people from being improperly exploited or compromised.
The purpose or purpose of the contract refers to the ultimate intention or objective that the parties seek to achieve through the contractual agreement. For a contract to be valid, its purpose must be lawful, that is, it must be in accordance with laws, morals, public order and good customs.
In the context of a contract, the object refers to what the agreement is about, that is, the goods, services, or actions that are exchanged, performed, or committed to by the parties. For a contract to be valid, the object must meet two fundamental conditions: be possible and be lawful. 
SHARE THIS POST
TAGS
5 Fundamental elements for a FOREIGN COMPANY to become a SHAREHOLDER in a PERUVIAN COMPANY