Rental Agreement

Business Law – BUS311

Contract Example

My eldest son moved into his first apartment about a year and a half ago and was named one of the main leases on the rental agreement. The rental agreement was for the term of one (1) year with a monthly rent amount of $1,200. The Internet and Cable were included in the rent but the utilities, Power and Gas, were to be paid by the renters. The apartment was a two (2) bedroom, one (1) bathroom apartment that was shared between two couples, of which my son and the other male roommate were named on the lease. Both females were not listed on the lease. A few months into the lease the other couple had a baby and contentions were high between the two couples. They moved out, removed the second name off the lease which left my son as the sole lease holder. My son and his girlfriend found another couple willing to move in. That was also short lived as well and this cycle happened a couple more times. About three or four months before the lease was up my son and his girlfriend moved in with her sister. My son kept is name on the lease and utilities. Needless to say, the rental agreement not fulfilled and my son was solely held liable.

5 essential elements of an enforceable contract

The Five elements of an enforceable contract are Offer, Acceptance, Consideration, Legality, and Capacity. Offer is an invitation for someone to enter into a contract. Acceptance is agreeing to the terms of the contract offer. Consideration is what will be exchanged in the contract, i.e. money, property, etc. Legality is “The extent to which the contract is legal and not against public policy.” (Rogers, 2012). Finally, Capacity is that all parties have the mental capacity to enter into a contract. Minors and anyone without the mental capacity to make adult decisions are not held liable for contracts they enter.


The offer pertaining to the rental agreement my son entered was when the apartment complex reviewed his application, approved it and offered him the apartment. Had he not met some of the requirements he would not have been offered the opportunity to sign a rental agreement.


When my son agreed to move forward with the rental agreement he accepted the offer of residing in the apartment. According to , “Acceptance of an offer is the expression of assent to its terms.” (, 1997-2016). At this point he would have verbally been told what the terms of the contract would be or have had the opportunity to review the contract, so he knew what he was getting into before he signed the rental agreement.


My son agreed to pay monthly rent of $1,200 for a two-bedroom, one-bathroom apartment. According to “Consideration must be of value (at least to the parties) and is exchanged for the performance or promise of performance by the other party (such performance itself is consideration.” (Hill, 2018). Consideration has been met in this agreement.


A rental agreement is a legally binding contract as long as it does not go against public policy. My son signed a legally binding contract and is bound to the terms regardless of who was living in the apartment. Technically there is a clause in the agreement about sub-leasing the apartment which is a breach of contract as well.


Although my son did not make the best decisions in regards to the contract, aka rental agreement, with the apartment complex he is still held liable because he was legally an adult. He had just turned 18 a month prior. Had he been a minor it’s possible he would have been able to disavow the contract but the apartment complex probably wouldn’t have rented to him because he was a minor.

Breach of contract

Since my son moved out prior to the end of his rental agreement, he breached the contract and is held liable to the terms. Based on a generic Utah Residential Lease Agreement the early termination fee is either the amount of three (3) months of rent or the actual costs the landlord incurred. Costs could include, property management fees, collections fees, re-renting costs, background checks, credit reports for potential tenants, etc.

In conclusion, all the essential elements of a contract were present in the rental agreement (contract) between my son and the apartment complex. My son faulted on his side of the agreement and should be held liable for breach of contract, including all agreed upon costs.


Hill, G & K (2018) – The People’s Law Dictionary. Published by Fine Communications. Retrieved from

Rogers, S. (2012). Essentials of Business Law [Electronic version]. Retrieved from (1997-2016). Acceptance. Retrieved from

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