What is a contract?
A contract is a legally binding agreement between two parties. A contract is valid and enforceable if
the agreement contains sufficient evidence of the following elements:
An offer and an acceptance;
A common intention between the parties to create a binding legal agreement;
The giving of ‘consideration’ for the promise;
Legal capacity of the parties to act;
Genuine consent of the parties; and
Legality of the agreement.
An agreement that lacks one or more of these elements is not a valid contract.
What is a contract?
Chapter: 7.1: How contract law works
Contributor: Evelyn Tadros, Barrister
Current as of: 1 September 2024
Law Handbook Page: 604
Next Section: Must contracts be in writing?
