contract law principles

Contract law principles govern agreements between parties. A valid contract requires five key elements: offer (one party proposes terms), acceptance (the other party agrees), consideration (something of value exchanged), capacity (both parties are legally able to contract), and legality (the contract’s purpose is lawful). If one party fails to fulfill their obligations, it may result in a breach, allowing the other party to seek remedies like damages or specific performance. Contracts can be written or verbal, but clear terms help prevent misunderstandings and disputes. Understanding these principles helps ensure fair and enforceable agreements.