What are the key elements of a valid contract?

The key elements of a valid contract include offer, acceptance, consideration, legal purpose, and capacity.

An offer is a clear proposal made by one party to another, which signifies the willingness to enter into a contract under certain terms. Acceptance is the agreement of the other party to the offer, which must be communicated properly to create a binding contract. Consideration refers to something of value that is exchanged between the parties, which is essential for a contract to be enforceable. A legal purpose means that the contract must be for a lawful objective and not violate any laws or public policy. Lastly, capacity pertains to the legal ability of the parties to enter into a contract, meaning they must be of sound mind, not minors, and not under duress.

Each of these components is vital for ensuring that a contract is both binding and enforceable. Without any one of these elements, the contract could be deemed invalid, which is fundamental to understanding contract law. Other options presented lack critical elements and do not provide a complete scope of what constitutes a legally binding contract.