What is a contract?
A contract is a promise between two sides that the law can help enforce. One side says "I will do this," the other says "okay, and I will pay you that." When both agree and both give something, you have a deal.
Lawyers often describe a simple contract with three ideas:
| Idea | Plain meaning | Everyday example |
|---|---|---|
| Offer | One side proposes the deal | "I will design your logo for $300." |
| Acceptance | The other side agrees to the same deal | "Yes, please go ahead." |
| Consideration | Each side gives something of value | Work from one side, money from the other |
- Other things usually matter too: both sides must intend to make a real deal, and the deal must be legal.
- A contract does not always have to be a long paper. Written terms are much easier to prove, so ask for the deal in writing (an email or message thread can help, but a signed document is clearer).
- Rules about contracts differ by province and country, so use these ideas as a starting map only.
- Take any deal you are about to make (a freelance job, a rental, a service plan).
- Write down the offer: who will do what, and for how much.
- Check for acceptance: did both sides clearly say yes to the same terms?
- Check consideration: what does each side give?
- Ask for the terms in writing and keep a copy.
- Check: you can say in one sentence "I will ___, and they will ___."
Videos by other creators on YouTube, for reference. They are not made by or affiliated with The Future Market.
Read the video script
[Host] "A contract is just a promise that both sides agree to, and the law can help enforce."
[Text on screen: Offer] "First, an offer: one side proposes the deal. For example, I will design your logo for three hundred dollars."
[Text on screen: Acceptance] "Second, acceptance: the other side says yes to the same deal."
[Text on screen: Consideration] "Third, consideration: each side gives something of value, like work for money."
[Host] "Get the deal in writing, and remember: this is education, not legal advice."
Pick a recent deal you made, such as a phone plan or a small job. Write the offer, the acceptance and what each side gave, in three lines.
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I'm learning "Contracts and Invoices Basics: read before you sign, bill like a pro (education only, not legal advice)" on The Future Market. Lesson 1: "What is a contract?". What the lesson teaches: - Idea - Plain meaning - Everyday example - Offer - One side proposes the deal - "I will design your logo for $300." - Acceptance - The other side agrees to the same deal - "Yes, please go ahead." - Consideration - Each side gives something of value - Work from one side, money from the other - Other things usually matter too: both sides must intend to make a real deal, and the deal must be legal. - A contract does not always have to be a long paper. Written terms are much easier to prove, so ask for the deal in writing (an email or message thread can help, but a signed document is clearer). - Rules about contracts differ by province and country, so use these ideas as a starting map only. The exercise I'm working on: Pick a recent deal you made, such as a phone plan or a small job. Write the offer, the acceptance and what each side gave, in three lines. I'm stuck. Please: 1. Explain the main idea in plain, simple words with one everyday example. 2. Walk me through the exercise one small step at a time. Ask me what I've done so far before giving the next step. 3. Don't just give me the final answer. Help me do it myself, and check my work when I share it.
I'm a parent helping my child (about 8 years old) with a lesson called "What is a contract?" from the course "Contracts and Invoices Basics: read before you sign, bill like a pro (education only, not legal advice)". Here's what the lesson says: A contract is a promise between two sides that the law can help enforce. One side says "I will do this," the other says "okay, and I will pay you that." When both agree and both give something, you have a deal. The activity: Pick a recent deal you made, such as a phone plan or a small job. Write the offer, the acceptance and what each side gave, in three lines. Please explain this so an 8-year-old understands: short sentences, a fun everyday example, and no hard words. Then give me 3 simple questions I can ask my child to check they understood, and a way to do the activity together, one tiny step at a time.
Sources
- Textbook contract basics (offer, acceptance, consideration) are general legal definitions. For your situation, see the Law Society Referral Service: lso.ca/public-resources/finding-a-lawyer-or-paralegal/law-society-refe
Parts of a simple service agreement
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Red flags before you sign
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Employee or contractor?
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Writing a clear invoice
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Getting paid and handling late payments
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When to talk to a lawyer or legal clinic
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Final project
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Quiz
What three ideas describe a simple contract?
Offer, acceptance and consideration.
What is consideration?
Something of value each side gives, such as work and money.
Name three parts of a simple service agreement.
For example scope, price, payment terms, deadlines, cancellation, who owns the work.
Why can "unlimited revisions" be a red flag?
You could be asked to redo the work forever.
What is auto-renewal?
A contract that renews on its own unless you cancel in time.
Where can you learn how your country decides employee versus self-employed status?
From your country's tax agency or labour office.
Name two factors a tax agency may look at for worker status.
For example control, tools and equipment, subcontracting, financial risk, investment, opportunity for profit.
What can you ask a tax agency for about worker status?
An official ruling or decision.
If you are registered to charge sales tax, what should a larger invoice show?
The tax charged (or a statement it is included) and your tax registration number.
What should you do about the small-seller limit for sales-tax registration?
Check your own country's limit with its tax agency.
Where can you find a free or low-cost first talk with a lawyer?
A lawyer referral service, legal clinic or legal aid office.
Who might give free legal help if you cannot afford a lawyer?
A local legal aid office or community legal clinic.
Final exam
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Certificate
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