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What is An Agreement?

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An agreement between parties that creates mutual obligations is enforceable as a contract. 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. This can include goods, cash, services, or a pledge to exchange these items.

The basic elements required for the agreement to be a legally enforceable contract are: mutual assent, expressed by a valid offer and acceptance; adequate consideration; capacity; and legality. A verbal agreement is just as legally enforceable as a written one. Although you may have problems proving the terms of the agreement. So, it is always a good idea to get it in writing.

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This material has been provided for general informational purposes only and does not constitute legal advice.