A contract is an agreement between two or more parties to do, or not do, something in exchange for something of value. Elements of a contract are essential components that must be present in order for the agreement to be legally binding. These elements include offer and acceptance, consideration, capacity, intention to create legal relations, legality, and certainty. It is important to understand all elements before entering into any contractual agreement. When it comes to business law, the most important element of a contract is understanding the implications of each clause in the agreement and making sure that each party understands the scope of their legal obligations.