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.

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