There are seven elements of a good contract.
- Offer and acceptance: A proposal made by one party (the offeror) to another party (the offeree) indicating a willingness to enter a contract of the offeree to be bound by the terms of the offer.
- Agreement: The primary element that creates a contract between parties is agreement, which is a result of offer and acceptance, that forms consideration for the parties concerned
- Intention: intention to create legal relations consists of the readiness of a party to accept the legal sequences of having entered into an agreement.
- Consideration: It implies the price agreed to be paid for the promisor’s obligation by the promisee. It must be adequate and lawful.
- Capacity: The law presumes that anyone entering a contract has the legal capacity to do so. Minors are generally excused from contractual responsibility, as are mentally incompetent and drugged or drunk individuals.
- Consent: consent is the understanding that the parties have of the contract.
- The legality: Contracts cannot be created to govern the trade of illegal products or services.
