In order for a contract to be legally choate/valid
the contract MUST contain the following elements always:
(without these elements a contract is not enforceable, it's invalid)
The following elements of a contract are crucial for any legally-valid contract:
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The offer
One party must make an offer to another. This is a description of terms that the offering party makes to the other and is legally obliged to carry out. A formal job offer is a perfect example.
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Acceptance of an offer
To make a contract valid, any offer that’s been made needs to be accepted by the other party. This tends to be a typical part of the contract process.
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The capacity of the parties involved
For a contract to be valid, everyone who enters the contract needs comprehend and understand the full agreement and all the obligations associated with the contract.
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Some form of consideration
Consideration means the exchange of something of value and is necessary for a contract to be legally valid. This cannot include anything that breaks the law, so a contract would not be valid if it related to the sale of anything illegal.
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All parties intend to enter the agreement
For a contract to be valid, everyone entering the contract must show clear intention to begin a formal agreement and accept the terms as legally binding. Different types of contracts can have different proofs of intent.