What are the two essential elements of a contract?

A contract is a legally binding agreement between parties and consists of essential elements that establish its validity. The two fundamental components of a contract are an offer and acceptance.

The offer represents the proposal made by one party to another, outlining the terms and conditions they intend to agree upon. Acceptance occurs when the other party agrees to the terms of the offer, thereby creating a mutual agreement. This exchange signifies the meeting of minds, which is critical for forming a valid contract.

While communication and consideration, intent and mutual understanding, and writing and signing can be important aspects or forms that facilitate contracts, they do not constitute the essential elements required for a contract's existence. For instance, while consideration (something of value exchanged) is integral to many contracts, it is not part of the duo of offer and acceptance that fundamentally create a contract.