Contract Elements chapter 2 cy

In order for an agreement to become a legally binding contract, it has to satisfy several requirements. These are:

1. The agreement must be such that it intends to create legal relations and is capable to affect legal relations. In other words there must be a valid offer made by the promisor and a valid acceptance of the offer by the promise.
2. All parties to the agreement must have full contractual capacity. For example, a child does not have the capacity nor is someone who is mentally ill.
3. In cases where special formalities are required by law to be part of agreement, these special formalities must be fully complied with.
4. Any agreement that is to become a binding contact must include a “consideration”.
5. The subject matter of the agreement must not be against the law.