Legal Contracts Definition

A legal contract is a legally binding agreement between two or more parties. Contracts are typically written documents, but they can also be verbal agreements. All contracts must contain four essential elements: 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 offer must be made with the intention of creating a legally binding agreement. An acceptance is an unqualified assent to the terms of an offer. Consideration is something of value that is given by one party to another in exchange for entering into a contract. It can be money, goods, services, or a promise to do something. The final element, intention to create legal relations, shows that the parties involved intend to be bound by the contract and enforce its terms.