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A contract is an agreement between two parties that creates an obligation to perform (or not perform) a particular duty. A legally enforceable contract requires the following elements, all of which are discussed in more detail below.

Generally, to be legally valid, most contracts must contain two elements: All parties must agree about an offer made by one party and accepted by the other. Something of value must be exchanged for something else of value.

A simple contract might include an agreement between two acquaintances to exchange one service for another. For example, if one person is a plumber and the other an electrician, they might agree to complete certain work for each other as a trade exchange.

The subject of a contract is typically the exchange of some type of goods or services. A contract must include all relevant information about the exchange. Essentially, anyone can draft a contract on their own; an attorney is not required to form a valid contract.