A contract is a legally binding agreement between two or more parties. It is an essential part of many aspects of our lives, from buying a house to getting a job. But what makes a contract valid?

There are five essential elements that must be present for a contract to be valid:

1. Offer and acceptance. There must be an offer by one party and an acceptance by the other party. The offer must be clear and definite, and the acceptance must be communicated to the offeror.
2. Consideration. Each party must give something of value to the other party. This can be money, goods, services, or even a promise to do something.
3. Intention to create legal relations. Both parties must intend to be legally bound by the contract.
4. Capacity. Both parties must have the legal capacity to enter into a contract. This means that they must be of legal age and sound mind.
5. Legality. The contract must not be illegal or against public policy.

If any of these elements are missing, the contract may be invalid.

Here are some examples of invalid contracts:

• A contract that is signed under duress or fraud is not valid.
• A contract that is made by a minor is not valid.
• A contract that is for an illegal purpose is not valid.

If you are unsure whether a contract is valid, it is always best to speak with an attorney.

Legal Citations:

• Restatement (Second) of Contracts § 1 (1981).
• California Civil Code § 1625 (2023).
• Uniform Commercial Code § 2-104 (2023).

https://www.ali.org/publications/show/contracts/

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