1. The Nature of a Contract
A contract is any agreement enforceable by law.
Not all agreements are contracts, however.
Whether or not it’s a contract, depends on the circumstances of the agreement.

2. Elements of a Contract There are six elements of a contract. offer
acceptance
genuine agreement
consideration
capacity
legality

3. Elements of a Contract
An offer is a proposal by one party to another intended to create a legally binding agreement.
An acceptance is the second party’s unqualified willingness to go along with the first party’s proposal.

4. Elements of a Contract
If a valid offer is met by a valid acceptance, a genuine agreement exists.
Capacity is the legal ability to enter a contract.

5. Elements of a Contract
Consideration is the exchange of things of value.
Legality means that people can only enter into contracts for legal purposes. People cannot enter into contracts to commit illegal acts.

6. Characteristics of a Contract
Contracts can have any of the following characteristics
valid, void, voidable, or unenforceable
express or implied
bilateral or unilateral
oral or written

7. Valid, Void, Voidable, or Unenforceable
A valid contract is legally binding.
A contract that is void has no legal effect.

8. Valid, Void, Voidable, or Unenforceable
When a party to a contract is able to void or cancel the contract for some legal reason, it is a voidable contract.
An unenforceable contract is one the court will not uphold.

9. Express or Implied
An express contract is stated in words and may be either oral or written.
An implied contract comes about from the actions of the parties.

10. Bilateral or Unilateral
A bilateral contract contains two promises.
A unilateral contract contains a promise by only one person to do something, if and when the other party performs some act.

11. Oral or Written
An oral contract is created by word of mouth and comes into existence when two or more people form a contract by speaking to each other.
Sometimes, however, it is desirable to put contracts in writing.