What is a contract?

A contract is an agreement between two or more parties that is legally binding. In Arizona, a contract must contain certain elements in order to be enforceable. These elements are: offer, acceptance, consideration, and legality. An offer is when one party proposes a deal to another party. The offer must define the terms and conditions of the agreement. The offer is then accepted by the other party when they agree to the terms of the deal. An acceptance must be clear and definite in order to be valid. Consideration is something of value that is given by each party to the other in order to make a deal. Consideration can be money, goods, services, or promises. Legality is important in a contract because it must refer to things that are legal under Arizona law. Contracts that relate to illegal activities are not enforceable. In summary, a contract is an agreement between two or more parties that is legally binding and includes the elements of offer, acceptance, consideration, and legality.

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