Understand the Essential Elements of a Valid and Legally Binding Contract and Its Role in a Business Context

II. Understand the essential elements of a valid and legally binding contract and its role in a business context:

1. The different types of business agreement and the importance of the key elements required for the formation of a valid contract.

A contract is a versatile legal tool that allows strangers to do business together by guaranteeing legal enforcement of its terms. Although many types of business agreements exist, four of the most popular categories are sales agreements, employment agreements, independent contractor agreements and confidentiality agreements.

• Sales Agreements

Although sales agreements can be executed between merchants and consumers, the highest value sales agreements are usually executed between businesses. The law of every state in the U.S. requires sales transactions with a value of at least $500 to be evidenced by a written contract in order to be enforceable. The contract need not be evidenced by a single documents, however, the mere exchange of memos or emails can constitute a binding contract under the Uniform