Four Elements of a Valid Business Contract Assignment - 5

Four Elements of a Valid Business Contract - Assignment Example Acceptance: This is the second step of formulating a contract. After the offer is being made by the service provider – both bidder and the service provider need to come to a common ground and accept each other’s offer then only a contract can be formulated. Consideration: Consideration is another key element of a valid contract. It can be regarded as the mutual consent between the parties or in the contract. It is expected from both the parties that certain special aspects would be considered in the contract to make it strong. There are many types of contracts that can be entered in the UK. There are four types of contracts that can be entered in the UK (Elliott & Quinn, 2007). All the four types of contracts are important and impactful in any business. Verbal Contract: As the name suggests this contract is a contract that is expressed in words. This contract is in contrast to other contracts, which is implied by the actions of the parties. There are two ways by which it can be implied – one is implied in fact and the other one is implied in law. A verbal contract is a frequently misused expression. Written Contract: This is another form of contract that is suggested by the court of law in the UK. This is the most commonly used form of contract and known to be more impactful compared to other types of contracts as all the clauses for the business are well written, understood and signed by the parties of the business. Online Contract: The online contract is nothing but the contract formation and shared via email or website. In this type of contract, the sign is made electronically. This form of contract saves both time and money for the parties in the contract.