Contracts

Basic Requirements

In order for contracts to be valid and enforceable, agreements must generally represent a meeting of the minds and intent to be bound objectively manifested by parties with capacity to contract; be supported by valid consideration from each party to be bound; include essential terms that are sufficiently specific [Page 199]and definite to be enforced; be of sufficient form, such as in writing; and have lawful subject matter.

There must be at least two parties to contracts. Parties to contracts must have the capacity to form those agreements. Minors and incapacitated persons, such as those who are incapable of handling their affairs due to mental disorders, generally lack the capacity to enter into contracts. In the education context, the capacity of parties to enter into contracts might be most relevant with respect to agreements between an educational institution and a minor student.

For example, educators in some schools, as motivating tools or behavior management strategies, engage in the practice of asking students to sign contracts specifying the school's expectations for their behavior. While such strategies might have pedagogical underpinnings, such as teaching students about taking responsibility for their actions, setting clear guidelines and expectations, and others, such “contracts” are, in most instances, unenforceable as legal agreements. These “contracts” are unenforceable because, among other reasons, student parties are minors who are incapable of binding themselves by contracts under law. For this reason, school officials seeking to enter into agreements with students, such as when school boards and their employees seek to be released from liability relating to students' participation in sports or other extracurricular activities, should ensure that they receive such consent in writing from the students' parents as well as the students.

Parties with capacity to enter into agreements have done so only when each has given objective manifestations of their intent to do so. Objective manifestations of intent might be signatures on written agreements, handshakes, oral commitments to be bound, or even, under some circumstances, performance of obligations of agreements.

Essential to the formation of contracts is the existence of valid consideration offered by each party. Consideration is something, such as funds, forbearances, performances, or return promises, that each party offers in exchange for the other party's (or parties') consideration. Absent consideration, a promise that would otherwise constitute a contract is a mere gift unenforceable under law. Accordingly, with relatively few exceptions, a promise unsupported by valid consideration cannot be a contract.

Valid contracts must include all essential terms and must be sufficiently specific. The omission of essential terms from agreements renders them unenforceable and therefore invalid. Valid contracts must also sufficiently describe their essential terms. Terms are described as sufficiently specific where the adequacy of a party's performance can be understood when considered in light of such terms. Insofar as contracts with terms that are insufficiently defined cannot be enforced, they cannot be valid.

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