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:
- an offer and an acceptance;
- a common intention between the parties to create binding relations;
- the giving of ‘consideration’ for the promise;
- legal capacity of the parties to act;
- genuine consent of the parties; and
- legality of the agreement.
An agreement that lacks one or more of these elements is not a valid contract.