A valid contract requires several essential elements to be legally enforceable:
- Offer: One party must make a clear and definite offer to another party.[1]
- Acceptance: The other party must unconditionally accept the terms of the offer.[1]
- Consideration: Both parties must exchange something of value, such as money, goods, services, or a promise to act or refrain from acting.[3]
- Mutual Assent (Meeting of the Minds): Both parties must understand and agree to the basic terms and essential details of the contract, showing genuine intention to be legally bound.[5]
- Capacity: All parties must have the legal ability to enter into a contract. This generally means they must be of legal age and sound mind.[1]
- Legality: The subject matter and purpose of the contract must be legal and not against public policy.[3]
If any of these elements are missing, the contract may be considered void, voidable, or unenforceable. While a contract can be oral or written, a written contract provides stronger evidence and legal protection.[11]
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