The parties must exchange some value for the binding nature of a contract. This is called reflection. The reflection should not be reasonable or for the benefit of the other person, it must suffice (z.B. if someone offers to sell his house for nothing, there is no quid pro quo; but if they offer to sell it for $1, then there is a valid consideration). However, for something important, such as the sale of a property, it could be chaotic if there is no valid contract. For a contract to be valid, it must include the following five elements: Most people contract a lot throughout their lives. From employment contracts to real estate transactions, car purchases and more, they are an important part of modern life. All contracts are based on agreements, but the distinction between contracts and agreements is the intention to create legal obligations. Not all agreements intend to create legal obligations, so not all agreements can become valid contracts. In the examples of our introduction, therefore, there does not appear to be any intention to create legal obligations. Both means of contracting are written and orally. Both can be legally binding and are authorized by business law, but it is always better to have a written contract for each important agreement. This is because the peculiarities of oral contracts are more difficult to argue when arguing with another party.

A contract that does not contain any of these elements is invalid and is therefore not legally enforceable. For each legally valid contract, the following are essential: this section helps them define the elements necessary for a contract and explain what makes a contract valid. What is important is that it is not necessary to obtain a valuable consideration for a valid formal contract. You will later see that valuable consideration is essential to the validity of all contracts, with the exception of formal treaties. A minor between the ages of 7 and 18 can therefore enter into a contract. However, it is assumed that they do not understand the effects of the contract. This means that the minor remains protected at the expense of the other party. The minor may terminate a contract without cause at any time before the age of 18 and for a reasonable period of time thereafter, the contract being “not valid”.

For a contract to be valid, anyone who enters into the contract must understand and understand the full agreement and all obligations related to the contract. At the most basic level, a contract is simply an agreement between two or more parties that defines the terms of an exchange. They can be written or oral, both are valid in the right circumstances, but some, such as real estate purchase contracts, are prescribed by law. Not all agreements between the parties are contracts. It must be clear that the parties intended to enter into a legally binding contract. Although it is not always necessary to sign a contract to conclude a legal agreement, obtaining a contract for all parties involved is good practice.