A contract is a binding agreement between two parties that has legal ramifications should one party or the other not abide by the terms of the contract.

1. Jurisprudence
Marcel Kooter
REQUIREMENTS FOR
A VALID CONTRACT

2. A contract is a binding agree-
ment between two parties that
has legal ramifications should
one party or the other not abide
by the terms of the contract.
REQUIREMENTS FOR A VALID CONTRACT
There are three key elements
that must be included to make
a contract valid and binding in a
court of law.

3. Mutual Assent
It must be demonstrated that
both parties are fully aware
of and agree to the terms
and wording of the contract,
so that each party unders-
tands completely what the
contract’s subject matter is.
One example could be the
ambiguity of the word ‘ship’,
which could mean ‘deliver’ or
could refer to a sailing vessel.
Offer and Acceptance
A contract must include a
clearly communicated offer
from one party to the other,
demonstrating the intent
of the offering party to be
bound by the terms of the
contract upon agreement,
and the unambiguous accep-
tance of this offer by the re-
ceiving party.
Consideration
Consideration is the mutual
exchange between the two
parties of something of value.
Certain contracts allow for a
one-sided promise to be en-
forced, where only one of the
parties has to render conside-
ration.

4. Contracts are often
used by businesses
entering into strategic
partnerships. To find
out more about this
topic, visit the blog of
Marcel Kooter.
Marcel Kooter