A contract is simple legal parlance is a legally binding agreement made between two or more parties. For an agreement to be enforceable at law it must be characterized by certain elements.
• Consensus –Comprises offer and acceptance. Is the foundation of any contract.
• Capacity –This is the ability to enter into a contract.
• Intention –The parties must have intended to bind themselves in law
• Consideration –The act or promise offered by one party as the price for the other‟s promise.
• Legality –The contract must not be illegal or unlawful
• Formalities if any –e.g. writing, signature consent, written evidence.