Essential Requirements of Contract

Contracts are legally binding agreements between two or more parties that outline their rights, obligations, and responsibilities. While the specific requirements may vary depending on the jurisdiction and the nature of the contract, there are some essential elements that should be included in a contract to make it valid and enforceable.

Offer and acceptance: A contract begins with a clear and definite offer made by one party (the offeror) to another party (the offeree). The offeree must accept the offer without any modifications or conditions to create a valid contract. Both the offer and acceptance must be communicated clearly.

Intention to create legal relations: The parties involved must have the intention to enter into a legally binding agreement. Contracts are generally presumed to have this intention, except in certain situations such as social or domestic arrangements.

Consideration: There must be a valuable consideration exchanged between the parties. Consideration refers to something of value (money, goods, services, etc.) that each party gives or promises to give as part of the contract. It ensures that both parties have something at stake and distinguishes a contract from a gift.

Legal capacity: The parties entering into the contract must have the legal capacity to do so. This means they must be of legal age (usually 18 years or older) and of sound mind. Minors, mentally incapacitated individuals, and those under the influence of drugs or alcohol may lack the legal capacity to enter into a contract.

Legal purpose: The contract must have a lawful purpose and cannot be for an illegal activity or against public policy. Contracts that involve illegal activities or seek to deceive or harm others are not enforceable.

Consent: The parties must freely and willingly give their consent to enter into the contract. Consent must be genuine and not obtained through fraud, duress, undue influence, or mistake. Each party must have a clear understanding of the terms and implications of the contract.

Certainty and completeness: The terms of the contract must be clear, specific, and sufficiently definite. The agreement should cover all essential aspects of the transaction, including the rights, obligations, and responsibilities of each party. Vague or ambiguous terms may render the contract unenforceable.

Legal formalities: Some contracts require specific formalities to be legally valid. For example, certain contracts, such as real estate transactions, must be in writing and signed by the parties involved. It is important to comply with any legal formalities applicable to the particular type of contract.

Contract laws can vary between jurisdictions, and specific requirements and rules may differ. It is important to comply with applicable laws and regulations when drafting or entering into a contract.
Back to blog
UOLLB SQE Turbocharge

UOLLB SQE Turbocharge

Get ready for the SQE1 with high-performance SQE Study Guides developed by UOLLB and published by UOL Press to revolutionise your study method and exam strategy.

Turbocharge SQE Performance

UOL Case Bank

Upon joining, you become a valuable UOL student and gain instant access to over 2,100 essential case summaries. UOL Case Bank is constantly expanding.
Speed up your revision with us now👇

Subscribe Now

Where are our students from?

Council of Europe
Crown Prosecution Service
Baker Mckenzie 
Yale University
University of Chicago
Columbia University
New York University
University of Michigan 
INSEAD
University of London
University College London (UCL)
London School of Economics (LSE)
King’s College London (KCL)
Royal Holloway, University of London 
Birkbeck, University of London
SOAS, University of London
University of Manchester
University of Zurich
University of York
Brandeis University
University of Exeter
University of Sheffield
Boston University
University of Washington
University of Leeds
University of Law
University of Kent
University of Hull
Queen’s University Belfast
Toronto Metropolitan University
Hong Kong University of Science and Technology
University of Buckingham
ESSEC Business School

  • Criminal Practice

    Diagrams and Charts

    Our carefully designed diagrams and charts will guide you through complex legal issues.

  • Criminal Law

    Clear and Succinct Definitions

    Key concepts are concisely defined to help you understand legal topics quickly.

  • Property Law

    Statutory Provisions

    Statutory provisions are provided side by side with legal concepts to help you swiftly locate the relevant legislation.

  • Public Law

    Case Summaries

    We have summarised important cases for you so that you don't need to read long and boring cases.

  • Evidence

    Rules and Exceptions

    Rules and exceptions are clearly listed so that you know when a rule applies and when it doesn't.

  • Company Law

    Terminology

    Legal terms and key concepts are explained at the beginning of each chapter to help you learn efficiently.

  • Case Law

    Case law is provided side by side with legal concepts so that you know how legal principles and precedents were established.

  • Law Exam Guide

    Law Essay Guide

    You will learn essential law exam skills and essay writing techniques that are not taught in class.

  • Law Exam Guide

    Problem Question Guide

    We will show you how to answer problem questions step by step to achieve first-class results.

  • Conflict of Laws

    Structured Explanations

    Complex legal concepts are broken down into concise and digestible bullet point explanations.

  • Legal System and Method

    Legal Research

    You will learn legal research techniques with our study guide and become a proficient legal researcher.

  • Jurisprudence and Legal Theory

    Exam-focused

    All essential concepts, principles, and case law are included so that you can answer exam questions quickly.