A legally binding contract has specific elements that uphold its validity. Some contracts must be in writing, especially when goods or services are exchanged for an amount above $500. Contracts cannot be written for illegal purposes, such as to commit a crime. Requirements of a legal contract include:An offerAn acceptance of the offerA promise to performA consideration of valueA date, time window, or event when the performance must be completedTerms and conditions associated with the performance PerformanceDuring the offer and acceptance period of the contract, two or more parties strike an agreement. This occurs when one party offers something of value in exchange for consideration. There is an initial agreement between parties, and the signing of the contract occurs. Signatures on the contract are normally provided as evidence that the parties have agreed to the document’s terms. Until the contract is signed, there is no valid agreement. Changes to an offer may be made up to the time of final signature. To validate a contract, consideration must be provided. Consideration may include something of value in exchange for a benefit. It can include money or property, or another item determined to have value. One other requirement of contracts is that all parties must be legally competent. Individuals who cannot enter into contracts include minors or the mentally impaired. A party must be of sound mind and not under the influence of alcohol or drugs at the time of the contract. As mentioned above, parties must be free from duress. A contract can be deemed void if there is mental incompetence, duress, or fraud found with regards to one or more parties.