Question: A Contract

Answer: is a legal agreement between two competent parties that promises a certain performance in exchange for a certain consideration

Question: Characteristics are

Answer: competent parties; legal purpose ; offer and acceptance ( agreement ) ; and Consideration

Question: Competent Parties

Answer: A Contract is not valid unless it is made between two parties who are considered competent under the law. In most cases, a person who is a minor, insane, or under the influence of alcohol or drugs is considered incompetent.

Question: Legal Purpose

Answer: The second requirement for a valid contract is that it be formed for a legal purpose .A contract that is against public police ( offensive to the best interests of the public ) or in violation of the law is not enforceable.

Question: Offer and Acceptance

Answer: The third element of a valid contract, OFFER AND ACCEPTANCE ,means that the contract involves two parties ; one who makes an offer and one who accepts it.