Offer and acceptance: An offer must be made by one party and accepted by another.
2. Consideration: Something valuable must be exchanged, and both parties to the contract must have some sort of obligation under it.
3. Capacity: Both parties must be of sound mind and able to consent to the contract.
4. Legality: Contracts cannot contain clauses that require any unlawful acts and must abide by state and federal law, no exceptions.