ENVIRONMENT OF BUSINESS

Legal and Ethical Environment of Business



Legal and Ethical Environment of Business

Elements of a valid contract

A contract is an agreement between two parties to fulfill certain obligations according to predefined terms and conditions (Joseph, 2000).

• There should be at least two parties for an agreement

• The terms and conditions of contract should be accepted by both parties (Joseph, 2000).

• The agreement should provide value and consideration to both parties.

• A contract should consist of authorized activities.

Objective theory of contracts

The Objective Theory of Contracts is the set of guidelines which describes that the contract is not an agreement in ...