Understanding Contracts

Definition: Contracts are legally binding agreements that outline terms and responsibilities.

Key Components:

1. Agreement: Offer and acceptance.
2. Consideration: Exchange of value (money, goods, or services).
3. Capacity: All parties must be mentally capable and of legal age.
4. Legality: The agreement must involve lawful activities.

Types of Common Contracts

Lease Agreements: Contracts between landlords and tenants outlining rent, duration, and eviction terms.

Employment Contracts: Define salary, job responsibilities, benefits, and termination conditions.

Loan Agreements: Cover borrowing terms, interest rates, and repayment schedules for loans like car or student loans.

Insurance Policies: Agreements detailing premiums, coverage terms, and claims processes for health, car, or life insurance.

Service Agreements: Define expectations for services (e.g., internet, utilities) and clarify costs and responsibilities.