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:

1 an offer and an acceptance;

2 a common intention between the parties to create binding relations;

3 the giving of “consideration” for the promise;

4 legal capacity of the parties to act;

5 genuine consent of the parties; and

6 legality of the agreement.

An agreement that lacks one or more of these elements is not a valid contract.