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If A says to B, “I will repair your house,” and B makes no promise in return, there is no agreement. If B says, “I will pay you $1,000,” there is still no agreement. Why? Because it takes two parties to make an agreement. An agreement involves an exchange of promises or goods. A has not yet agreed to accept $1,000 for doing the work. If A says, “I will accept $1,000,” there is an agreement on the price, but is there a contract?
Unless there is agreement on all the essential terms, the law does not recognize the existence of a contract. Is there an agreement on the actual work to be done to repair the house? It may be that A and B know exactly what work is necessary—for example, repairing a leak in the roof. In that event, the actual work to be performed is agreed upon, and there may be a contract.
Case Assignment
In a well-written 3-page paper (excluding title and references pages), provide the following:
Suppose you work for Capital Home Improvement, LLC, and a client is interested in having the roof repaired for their house.
• Discuss the elements of a contract (Consideration, Capacity, Offer, and Acceptance).
• Develop an original contract for Capital Roofing. Include the itemized work required for the job and signatures by both parties.
• Include details down to the company name, logo, address, and homeowner’s address.
• Make the contract as complete as possible to address all the essential terms of a legal contract.


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