Question

What are some of the conditions of a binding Contract? Please explain

Answer 1

Binding contract refers to the signing of legal agreement which based on mutual obligation of both parties. Such parties are tied up with the activities of acceptance and offer on both sides. Offeror agrees to propose to give the service to the obliged party. The obliged party agrees to accept the offer by paying some monetary compensation by getting service from the offeror.  The obliged party is also known as offeree. Let us explain some of the conditions of a binding contract.

The binding contract involves certain subjective elementive factors which acts as the conditions to rule out terms. Those elements are 1) Consideration:-  The mutual consent in writing. The writing proof is not a basic formality of proof. But it is the actual proof of exchange of goods and services with mutual benefits in terms of payments. 2) Right of liability:- Liability lies with the offeror prominently in order to ensure the proper flow of goods and services with guaranteed promise. Such guaranteed promise should ensure the reliability of the goods and services. 3) Payment obligation:- The offeree should agree with the terms and conditions of payment related obligation with the offeror.