If you are going to work in business or sales, your job might involve entering into contracts with other businesses or individuals. Contracts play a fundamental role in business; after all, almost all business relationships are created by contracts. Having a basic understanding of contract law will give you a leg up when you enter the business world.

Before beginning the interactive, review LO 13-1. Recall that a legally binding contract requires four elements: offer, acceptance, capacity, and legal object.

Read the case below and answer the questions.

Mr. Barnard is a landlord who has a house to rent. A college student, Julie, saw the sign in the front yard and is interested in renting the house. Mr. Barnard tells her the house is for rent for a total of 12 months, and that rent will be $899 in cash each month plus utilities. After touring a couple of houses in the neighborhood, Julie decides to rent Mr. Barnard's house and comply with his terms.

What is the definition of the term "agreement" when we refer to contracts? Explain the details of the agreement for this case.