what constitutes a contract
The terms of the contract, meaning, the who, what, where, when, and how of the agreement, define the binding promises of each party to the contract. Contracts are considered valid the moment that the offer is accepted.For example, if you shake hands and agree to purchase someoneâs old TV for $30, you have a valid contract. The contract is complete when you give them the money and they give you the TV.ontracts are considered valid the moment that the offer is accepted. For example, if you shake hands and agree to purchase someoneâs old TV for $30, you have a valid contract. The contract is complete when you give them the money and they give you the TV.