There are six elements that make a contract legally binding or valid. Not all contracts need to be in writing.


Evelyn Tadros


What is a contract?

Last updated

1 July 2021

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.

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