I want a video with voice explanation of essential elements of valid contract
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A contract is a legally binding agreement between two or more parties that creates mutual obligations enforceable by law. Contracts are fundamental to business and personal transactions, covering everything from employment agreements to property purchases. However, not all agreements qualify as legally enforceable contracts. For an agreement to be valid and enforceable in court, it must contain five essential elements that we will explore in detail.
The first two essential elements of a valid contract are offer and acceptance. An offer is a definite proposal to enter into an agreement with specific terms that, if accepted, will form a binding contract. The offer must be clear, definite, and communicated to the other party. Acceptance is an unqualified agreement to all terms of the offer and must mirror the offer exactly, known as the Mirror Rule. Any changes to the terms constitute a counteroffer, not acceptance. Examples include job offers that specify salary and duties, purchase proposals with price and delivery terms, and service agreements outlining scope and payment.
The third essential element is consideration, which is something of value exchanged between parties that makes promises legally binding. Consideration distinguishes contracts from gifts and ensures both parties receive benefit from the agreement. Valid consideration includes money for goods or services, goods for goods in barter arrangements, services for payment, or promise for promise. The exchange must be mutual - both parties must give and receive something of value. Invalid consideration includes past consideration, where something was already done before the promise was made, illusory promises that don't actually commit the promisor to anything, and gifts where only one party provides value without receiving anything in return.
The fourth essential element is legal capacity, which means parties must have the legal ability to enter binding agreements. Capacity requirements include reaching the age of majority, usually eighteen years old, having mental competence to understand the nature and consequences of the agreement, and being sober at the time of contract formation. Minors, individuals with mental impairments, and intoxicated persons generally lack capacity, and contracts with such parties can be voided. However, there are important exceptions: minors can enter valid contracts for necessities like food, shelter, and medical care, and they can ratify contracts upon reaching the age of majority, making them fully enforceable.
The fifth and final essential element is lawful purpose, which requires that contract objectives must be legal and not violate public policy. Legal purposes include legitimate business services, property sales, employment agreements, and loan contracts. However, contracts with illegal purposes are void and unenforceable. These include contracts that violate statutes, harm public welfare, illegally restrain trade, or encourage illegal activity. Examples of illegal contracts include agreements to commit crimes, contracts that create monopolies in violation of antitrust laws, and agreements that harm the public interest. Courts will not enforce such contracts, and parties cannot seek legal remedies for their breach.