A contract is much more formal and abiding than an agreement. In order for an agreement to become contract it needs to have an offer and acceptance. There must be intention to create a legally binding agreement. It also involves a price that has to be paid. The parties involved must be legally entitled with free own will and understanding of the contract in order to make sure that it is enforceable by law. This means that anything that involves false statements, duress, or undue influence will make the contract illegal or void. Here you can find important elements of valid Legal Contract and  also you can get best Legal Contract Writing Services from our company.


An Offer

The first thing in an offer is that a party makes an offer. There is a difference between mere willingness and an offer. For example, Mr. A offers to sell his car to Mr. B at a certain price, this is considered as an offer. Before the offer can be accepted by Mr. B, Mr. B will ascertain the type of car, its specifications, condition, mileage and other things in order to accept or reject the offer made by Mr. A. The offer can be made to single person, specific persons of interest or to the general public. The offer makes the offering party bound once the terms have been accepted by the other party. Therefore, in order for an agreement to become contract, it needs to have an offer.


An Acceptance

The acceptance is by the second party to whom the offer has been made. The acceptance can be communicated to the first party that originally made the offer through a statement or an act. In order for the acceptance to be considered by law it must be communicated in clear terms. If a person does not choose to clearly communicate acceptance it would not imply that the person has accepted the offer.


The Intention To Create Legal Relations

In order for a contract to be recognized in the eyes of law, the parties involved in the agreement must have the intention to make it legally binding. For example, sharing a ride with someone on a casual car trip does not constitute an agreement enforceable by law. However you may have asked your friend to share the traveling cost. And there is an extra cost other than the regular fare that you would charge your friend for upkeep of your vehicle. This is a situation recognized by law and makes the agreement enforceable by law, hence a contract. Therefore, any agreement that has been formed out of social relations or a temporary arrangement does not constitute a law. Law does not accept or enforce social arrangements or agreements.



Consideration is the price of the item to be sold. The price determined must be of some monetary value. However, by value it does not mean that consideration can only be money. The consideration can mean a right, interest or benefit that is going to be transferred to the seller. This may also mean protecting a party from a potential loss, responsibility or forbearance. In order for a contract be legally enforceable, it must have consideration.


Legal Capacity

In order to enter into a contract, both the parties must have the required authorization. There are no exceptions to this rule. There are certain people who cannot enter into a contract with anyone which include persons with mental impairment, minors, bankrupts, corporations, and prisoners.



The last element of a legally enforceable contract is consent. The parties involved must be able to exercise their free will without any coercion or force used. Therefore, if no proper consent is established a contract cannot be enforced by law. A Legal Contract may not be enforceable by law if it has been entered into by mistake, false statements, duress, undue influence, and in unconsciousness. Therefore, free consent is one of the most important elements for a contract to be abided by law.

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