How Contracts of Employment Are Established
The four essential elements of a valid contract are offer, acceptance, consideration, and intention to create legal relations. An offer is a promise do to something, such as hire a person for a position; it should be capable of acceptance. After an offer is made, it can be either accepted, or lapsed, rejected, and withdrawn; moreover, a counteroffer can be made. After the agreement is reached and the parties agree on the same subject matter and terms, acceptance can be made.
Acceptance is a form of agreement between the parties, which should take place while an offer can be accepted. Acceptance should also have the same terms as the offer, be unequivocal and unconditional, must be communicated to the offeror clearly, and comply with all conditions of the offer. When acceptance is effective, consideration becomes the next step in establishing a contract. The consideration represents the value in the contract, which means that something of value should be provided to all parties. Finally, a valid contract involves the intention to create legal relations; it is the last element of establishing a contract of employment. It means that all involved parties must intend to enter a legally binding arrangement that features enforceable obligations and rights of the agreement.
It is vital to add that terms in the contract can be express and implied. The first group involves the terms that are expressly agreed between the parties; in some cases, they can be written down. These terms should include starting date, salary, working hours, a probation period, and employees’ entitlement to pay rises. Implied terms, on the contrary, are those that are not set out expressly but that is a part of a contract automatically. Such terms may include the ones implied by the common law and under the statute.