ABSTRACT
Contractual requirements To begin this chapter, I would like to provide you with the legal definition of a contract: (1) offer, (2) acceptance, and (3) consideration.
The following is an example of how a simple contract would be initiated and agreed upon by two parties:
Offer• . Bob: I would like you to build me a garage cabinet that will store my tools; the budget for the project is $300. Negotiation• . Ray: I could build that cabinet [6 feet high × 26 inches deep × 36 inches wide] with three shelves that are spaced according to your specifications. The material will be particle board, the cabinet will have two hinged doors with locks, and I will paint it white. The cost for this project will be $375. Counteroffer• . Bob: If you build it for $350 and it is completed within two weeks, I will agree to your terms. Negotiating terms• . Ray: I can do it for $350, and I will deliver it in two weeks, but I will need a $100 deposit. Acceptance• . Bob: That sounds great! I agree on $350, and here is the $100 deposit. I will pay the balance when you deliver my cabinet.
