Legal Contracting Definition
A legal contract is a formal agreement between two or more parties that creates mutual, legally binding obligations. Contracts are typically written down and signed by all parties, but they can also be verbal. Verbal contracts are just as binding as written contracts, but they can be harder to prove in court if there is a dispute.
There are four elements that must be present for a contract to be considered valid: offer, acceptance, consideration, and intention to create legal relations. An offer is an expression of willingness to enter into a contract on certain terms. The offeree is the party who receives the offer. An acceptance is an unqualified agreement to the terms of an offer. Consideration is something of value that each party agrees to exchange under the terms of the contract. It can be money, goods, services, or anything else of value. Lastly, there must be an intention to create legal relations, which means that the contracting parties must intend to be legally bound by the contract.
