Lawful object 3. Offer and acceptance analysis is a traditional approach in contract law. Although sometimes, the agreement may allow the tenant to engage in home-based businesses provided the structure of the premises will not be altered. The object for which the agreement has been entered into must not be fraudulent or illegal or immoral or opposed to public policy or must not imply injury to the person or property of another. Essential Characteristics of a Valid Lease, Templates and examples to download in Word and PDF formats. After an offer is presented, it can be accepted or declined. It then becomes legally enforceable, meaning that the parties can be legally required to perform per the terms of the contract. rob a bank) 1. ‘Consent’ means that the parties must have agreed upon the same thing in the same sense. Exclusive Possession. An optionee, by reason of the option contract: A) has the right to collect rents during the option period B) can legally enforce the exercise of the option if the optionor changes his mind about selling If the agreement is affected by any of the first four factors, the contract 4. A lease that has no commencement date is invalid. The essential elements of a valid contract are: 1. One party must propose an arrangement to the other, including definite terms. For a contract to be legally binding the contract must first be legal. The offer must lead to a contract that creates legal relations and legal consequences in case of non-performance. After reading this article, you can review your Tenancy Agreements to confirm the validity of your lease. Another essential feature of a valid contract is that it must be capable of performance. Contracts are legal agreements between two parties or more. For every deal that requires, you to conduct a different task for your client, you need a business contract. An agreement must have been made by free consent of the parties. It is important to note that under the Personal Income Tax Act 2011, rent collected in advance for a period of 5 years is subject to tax in Nigeria. Leases may be made orally or in writing. No-one can force either party to enter into an employment relationship. Due to the high cost of real property in Nigeria, many persons prefer to live in rental properties as a cheaper alternative. Once this period expires, the tenant is required to vacate the premises, except it is renewed. The rent must be ascertainable and clearly specified in a lease agreement for the avoidance of doubt. Essential Elements of a Valid Contract: Terms in this set (15) Competent Parties (Legal entities—legal age and mentally competent) Offer and Acceptance (Also called ―mutual assent‖ meaning a ―meeting of the minds‖.) 27 and 30 respectively. 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