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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1280 |
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This can be distinct from consideration, which may be an initial inducement into the contract.
Contracts that do not meet the above requirements are considered non-binding contracts and are then placed into one of three categories: Void which means the contract has never come into existence, such as a contract with a hit man; voidable which occurs if one of the parties has the option to terminate the contract, such as a contract with a minor; and unenforceable which states neither party may enforce the other's obligations, such as in the United States, a contract is unenforceable if it violates the Statute of frauds...
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An example of the above is an oral contract for the sale of a motorcycle for US$5,000 (because in the USA any contract for the sale of goods over US$500 must be in writing to be enforceable). If the terms of the contract are uncertain or incomplete, the parties cannot have reached an agreement in the eyes of the law...
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