What are the prerequisites of a valid contract?

A contract is simple legal parlance is a legally binding agreement made between two or more parties. For an agreement to be enforceable at law it must be characterized by certain elements.

  • Consensus –Comprises offer and acceptance. Is the foundation of any contract.
  • Capacity –This is the ability to enter into a contract.
  • Intention –The parties must have intended to bind themselves in law
  • Consideration –The act or promise offered by one party as the price for theother‟s promise.
  • Legality –The contract must not be illegal or unlawful
  • Formalities if any –e.g. writing, signature consent, written evidence.
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