Law – 3 Law of contract | e-Consult

The essential elements are:

1. Offer – a clear, unequivocal expression of willingness to be bound on certain terms, communicated to the offeree.
2. Acceptance – an unconditional assent to the exact terms of the offer, communicated in a manner prescribed by the offer.
3. Consideration – something of value exchanged between the parties; each party must provide a benefit or suffer a detriment.
4. Intention to create legal relations – the parties must intend that the agreement be legally binding (presumed in commercial agreements, presumed absent in domestic/social agreements).
5. Certainty of terms – the contract’s essential terms (price, subject matter, quantity, etc.) must be sufficiently certain.
6. Capacity – parties must have the legal ability to contract (e.g., age, mental capacity).
7. Legality – the purpose of the contract must not be illegal or contrary to public policy.