Review the basic requirements for a valid contract [listed below] and discuss when a student enrolls in a college or university has a contract been formed? Why or Why not?

The following list briefly describes the four requirements that must be met before a valid contract exists. If any of these elements is lacking, no contract will have been formed. (Each requirement will be explained more fully in subsequent chapters.)

1. Agreement. An agreement to form a contract includes an offer and an acceptance. One party must offer to enter into a legal agreement, and another party must accept the terms of the offer.

2. Consideration. Any promises made by the parties to the contract must be supported by legally sufficient and bargained-for consideration (something of value received or promised, such as money, to convince a person to make a deal).

3. Contractual capacity. Both parties entering into the contract must have the contractual capacity to do so. The law must recognize them as possessing characteristics that qualify them as competent parties.

4. Legality. The contracts purpose must be to accomplish some goal that is legal and not against public policy.

An agreement to form a contract can modify the terms of a previous contract. When a dispute concerns whether this occurred, the offer and acceptance of both agreements can be reviewed to determine their effect. As in every case involving a contract, the parties subjective beliefs with respect to the terms are irrelevant, particularly in the absence of any evidence to support those beliefs. At issue in the following case was the effect of an offer and acceptance on a previous agreement between a university and an associate professor.