BL – Nov 2015 – L2 – SB – Q5c – Law of Contract

List four essential elements required for a valid and enforceable contract.

Question

A valid and enforceable contract requires some essential elements.

Required:

State FOUR of such essential elements.
(4 Marks)

Answer

Offer:
A valid contract requires a clear and definite offer made by one party to another, indicating the willingness to enter into a contractual agreement.
Acceptance:
The offer must be accepted by the other party in a manner that indicates agreement to the terms of the offer. Acceptance must be communicated and must match the terms of the offer (mirror image rule).
Consideration:
There must be something of value exchanged between the parties, known as consideration. This can be in the form of money, services, goods, or a promise to do or refrain from doing something.
Capacity:
Both parties must have the legal capacity to enter into a contract. This means they must be of sound mind, not minors, and not disqualified by law from entering into contracts.