1 Answer

askguru expert
Hi there, thanks for writing to us on AskGuru.

The law of contract states that there must be the following elements for a contract to be binding:
1. Intention to create legal relations
2. Offer (such as issuing of Tenancy Agreement to the tenant)
3. Acceptance (tenant has accepted the Tenancy Agreement by signing it)
4. Consideration (A security deposit as a promise to rent the property)

Therefore, for the contract to be legally binding, there must be some form of consideration. This means the rental cannot be $0.

Hope this answers your question.

Best Regards,

Team PropertyGuru Read More