Leaving Cert Business People in Business & Contracts: Explain, using examples where ap

Question

Explain, using examples where appropriate, three essential elements of a valid contract.

Louise and Cormac, who wanted to buy their first home, engaged in the contracting process after placing a bid on a house they liked. This situation highlights several essential elements of a valid contract:

1. **Offer**: The offer is a promise made by one party (in this case, Louise and Cormac) to bind themselves to the terms provided the other party (the seller) accepts. The bid they placed is an example of an offer, indicating their willingness to enter into an agreement to purchase the property.

2. **Acceptance**: Acceptance occurs when the seller agrees to the terms set forth in the offer. It must be clear, complete, and unconditional. In this scenario, the seller accepted the bid, which represents a clear acceptance of the offer made by Louise and Cormac.

3. **Agreement**: For a valid contract, there must be a clear and complete agreement between both parties regarding the essential terms. In this case, the acceptance of Louise and Cormac's bid resulted in an agreement that they would purchase the house, thus fulfilling this essential element of a valid contract.

Explain, using examples where appropriate, three essential elements of a valid contract - Leaving Cert Business - Question 1(A) - 2021

Worked Solution & Example Answer:Explain, using examples where appropriate, three essential elements of a valid contract - Leaving Cert Business - Question 1(A) - 2021

Offer

Acceptance

Agreement

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