How contract law works

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.