What Constitutes A Binding Contract That You Cannot Run Away From?

Time do fly very fast.

…and I realised, I have contributed over 200 posts in this blog.

Phew…I feel that is really a feat.

It is very easy to create a blog, but to maintain it, you need patience, you need energy and you need a DIEING INTEREST to share your knowledge with the public.

Today’s post, I will like to share with you on what is a contract and what constitutes a contract.

I remembered learning about contractual law while studying one of my favourite modules, Business Law back in Ngee Ann Polytechnic and I revisit this this theory again, while studying for my (BICP) Basic Insurance Concepts and Principles examination.

…and now,I am taking my first module for my CFP course, Foundations In Financial Planning, I am visiting this concept again.

So…again, what exactly constitutes a VALID contract?

For a contract to be valid, there must be 4 things.

1) Offer
Example: I OFFER you to take up insurance.

2) Acceptance
Example: You ACCEPT by signing the contract.

3) Intention To Create Legal Relation
Example: You understand that I am your FINANCIAL ADVISOR and you are my CLIENT.

4) Consideration
Example: You pay the premium to me in EXCHANGE for your coverage.

So in order for a contract to be legally binding, these 4 elements must be imminent.

Any one of the elements missing, the contract is VOIDABLE.

Think of all the contracts that you have signed…. Is it binding? 🙂

p.s. By the way, if you wish to discover a simple & halal way to create a positive monthly cashflow and calculate your net worth for FREE, then please click here…

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Helmi Hakim

A certified financial consultant, Helmi Hakim has won praise for his patience, perseverance and practicality when solving his clients' financial concerns. For more information on how you can manage your finances better, contact Helmi Hakim at 96520134.

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• Author
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Helmi Hakim

A certified financial consultant, Helmi Hakim has won praise for his patience, perseverance and practicality when solving his clients’ financial concerns. For more information on how you can manage your finances better, contact Helmi Hakim at 96520134.

Latest posts by Helmi Hakim (see all)

• My Quitting Story – Why I Left My Old Agency For The “Greater Good” – May 27, 2024
• Islamic Financial Consultant, Helmi Hakim is back…. – February 7, 2023
• 5 Secret Ways To Make You Feel Better When Handling Challenges In Your Life – May 22, 2021