This activity is important because contract law is an integral part of operating a business. A contract is a legally enforceable agreement between two or more parties. The contract is legally binding only if six key conditions are met.

The goal of this activity is to identify those six key conditions and to differentiate among them.

Instructions: Recognize which of the conditions fisted below are the actual conditions of a legally binding contract and match each condition to its correct definition.

An offer is made: $($Click to solect$)($efchtorinat$)$

An offer may be oral or written and is legally binding only when other conditions are met.

Both parties must offer each other something of value in return.

Contract can only be enforced if both parties are clear and sound in mind.

This ilustrates the principle of mutual acceptance, or when both parties agree to terms of contract.

Contract cannot cover illegal acts, e$.$g$.$ sale of stolen merchandise.

This is not one of the six conditions of legally binding contract.

Agreement must be in wriling.

Agreement must be in wring

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A legal act is covered by contract.

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