For a contract to be legally binding, it must have certain elements. Because contracts play such an important role in business transactions and operations, you must be certain that your company’s contracts are sound—and protect your interests. There are five key elements to a valid contract. Mutual assent, achieved by a shared understanding of the contract. Offer and acceptance, in which both parties communicate their intent to enter a contract. Consideration, wherein both parties mutually exchange something of value to make the contract legally binding. Some contracts can be one-sided, however, with one party offering a promise and the other consideration. Capacity, which means both parties are of sound mind and are legally able to enter a contract. Legal purpose, meaning the contract should be created for a legal reason, not an illegal one. A contract to commit a crime, for example, would not be recognized in a court of law. As Houston contract law attorneys, we know precisely how to draft, review, and litigate contracts in such a way as to protect our clients’ best interests.