Components of a Contract

For a contract to be valid and/or enforceable, it needs to be made of the following six features – without these characteristics in play, any contract into is not valid nor can it be enforced:


  1. There needs to be a “meeting of the minds”. An unqualified acceptance of the offer so that the seller clearly understands the terms of the buyers offer and the buyer clearly understands the performance required and the timing of the obligations
  2. The contract must be in writing – except if it a lease for one year or less
  3. There needs to be consideration, such as money or a promise to pay money
  4. There needs to be at least two competent parties to the transaction, as to a buyer and seller
  5. Names and signatures of all parties need to be on the contract
  6. The exact address of the property needs to be on the contract