Answer:The 5 elements of a legally binding contract are made up of:
An offer.
Acceptance,
Consideration.
Mutuality of obligation.
Competency and capacity.
Sometimes additional components are involved to protect the interests of all the parties.
A contract involves two or more parties who are competent to enter into a legally binding agreement. While a contract can be verbal or implied, it is usually in writing. If a contract is enforceable, a court can compel the parties to follow through on what they agreed to in the contract.
A legally enforceable contract is more than a casual promise between friends. The purpose of a business contract is to place legal requirements on the parties to follow through on the agreement. The legal system is available to mediate if a party breaches the terms of the contract.
