What are the elements of a contract?

A contract is an agreement between two or more parties that is legally enforceable. The elements of a contract in Arizona are offer, acceptance, consideration, capacity, and legality. Offer: An offer is an expression of a willingness to enter into an agreement. It can be written or verbal and must be specific as to what is being offered. Acceptance: Acceptance is a clear and definite expression of the willingness to accept the offer. It must be communicated to the other party and must be in conformance with the offer. Consideration: Consideration is something of value exchanged between the parties. It can be money, services, or goods, and it must be bargained for and agreed upon by both parties. Capacity: Capacity is the ability to enter into a legally binding contract. All parties involved must be of legal age and mentally competent. Legality: This element determines if the contract is enforceable. The contract must not be against public policy or the law. Also, the purpose of the contract must be legal and not involve illegal activities. In Arizona, once all of the elements of a contract are present and legally enforceable, the contract is considered valid. A breach of contract occurs when one or more of the parties fails to fulfill their contractual obligations.

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