What Are the Essentials of the Valid Contract

Contracts are an essential part of any business transaction. They provide a clear understanding of the terms and conditions agreed upon by the parties involved. However, not all contracts are valid. In order for a contract to be considered valid, it must meet a set of essential requirements. In this article, we will discuss the key essentials of a valid contract.

Offer and Acceptance

The first essential element of a valid contract is the offer. An offer is a proposal made by one person or party to another for the purpose of forming a contract. The offer must be clear, definite, and unambiguous. It must also be communicated to the other party. The second essential element of a valid contract is acceptance. Acceptance is the agreement by the other party to the offer made. It must be communicated to the offeror and must be unconditional.

Intention to Create Legal Relations

The third essential element of a valid contract is the intention to create legal relations. This means that both parties must intend to be legally bound by the contract. This requirement is especially important in situations where the parties involved are family members or close friends.

Capacity to Contract

The fourth essential element of a valid contract is the capacity to contract. This means that both parties must have the legal capacity to enter into a contract. This requirement is particularly important in situations where one of the parties is a minor or has a mental incapacity.

Lawful Object

The fifth essential element of a valid contract is the lawful object. This means that the subject matter of the contract must be legal. Contracts that involve illegal activities, such as gambling or the sale of illegal substances, are not valid.


The sixth essential element of a valid contract is consideration. Consideration refers to something of value that is exchanged between the parties. This can be in the form of money, goods, or services. The consideration must be sufficient but does not necessarily have to be of equivalent value.


In conclusion, a valid contract must have an offer and acceptance, an intention to create legal relations, capacity to contract, a lawful object, and consideration. It is important to ensure that all of these elements are present in any contract that you enter into. Failure to meet any of these requirements can result in an unenforceable contract. Therefore, it is important to seek legal advice when drafting or entering into any contract.