A contract is an agreement between two or more parties that is legally enforceable. In order for a contract to be considered valid, it must contain certain elements that are recognized by common law. Here are the seven common law elements of a valid contract:
- Offer and Acceptance: There must be a clear offer made by one party and acceptance of that offer by the other party.
- Consideration: Both parties must exchange something of value, such as money, goods, or services.
- Intention to Create Legal Relations: The parties involved must have the intention to be legally bound by the terms of the contract.
- Legal Capacity: Both parties must have the legal capacity to enter into a contract.
- Consent: The parties must freely and voluntarily agree to the terms of the contract without any coercion or duress.
- Legality of Purpose: The contract must have a lawful purpose and cannot be for an illegal activity.
- Certainty and Completeness: The terms of the contract must be clear, definite, and complete.
Understanding these elements is crucial when drafting or entering into a contract. It ensures that the contract is valid and legally binding.
For more information on specific types of contracts, you can check out the following resources:
