What is Required to Form a Contract

A contract is an agreement between individuals that shows a mutual understanding. It can involve promises or actions. To form a valid contract, three elements are essential: an offer, acceptance, and consideration. These elements are crucial and require detailed understanding.

What is a contract primarily described as in the video?

• A government regulation

• An agreement between individuals

• A financial transaction

• A legal document

Which of the following is NOT mentioned as a form a contract can take?

• Promise in exchange for action

• Promise for promise

• Promise for a gift

• Promise for a service

What is the first element required for a valid contract?

• Signature

• Offer

• Acceptance

• Consideration

What does 'consideration' in a contract refer to?

• A legal obligation

• A bargained-for exchange of value

• A verbal promise

• A written agreement

Why are the elements of a contract described as critical?

• They are optional

• They are essential for a valid contract

• They are straightforward

• They are easy to understand