A contract is a legally binding agreement that recognises and governs the rights and duties of At common law, the elements of a contract are; offer, acceptance, intention to If the contract is not required by law to be written, an oral contract is valid and A contractual term is "an[y] provision forming part of a contract". To be valid, a contract must generally contain all of the following elements: The fourth required element of a valid contract is legality. are bilateral, meaning both parties are in agreement and the four basic elements of a contract exist. The complaining party must prove four elements to show that a contract existed: acceptance does not have to mirror the terms of the offer for a valid contract to exist, This means the parties understood and agreed to the basic substance and the contract's formation, as well as the course of dealing between the parties.