In the world of business and commerce, contracts serve as the foundation of every transaction. A contract is a legally binding agreement between two or more parties that outlines the terms and conditions of a deal. However, not all contracts are valid. A valid contract must meet specific requirements to be enforceable by law. In this article, we will discuss the essential requisites of a valid contract.

1. Offer and acceptance: The first requirement of a valid contract is an offer. An offer is a proposal made by one party to another, indicating the intention to enter into a contract. The proposal must be specific and definite. The other party must accept the offer, creating a binding agreement between both parties.

2. Consideration: Consideration is the exchange of something of value between the parties. In a valid contract, both parties must give something of value to the other. This exchange is an essential element of a contract and distinguishes it from a gift.

3. Legal capacity: The ability to enter into a contract is referred to as legal capacity. To have legal capacity, a person must be of legal age, mentally competent, and not under duress or undue influence. A contract entered into by a person without legal capacity is not enforceable.

4. Legal purpose: The objective of a contract must be legal. A contract with an illegal objective, such as an agreement to commit a crime, is not enforceable.

5. Consent: Both parties must agree to the terms and conditions of the contract. The agreement must be voluntary, and both parties must have a clear understanding of the terms and conditions.

6. Compliance with formalities: Some contracts require formalities such as writing, signatures, or witnesses. Failure to comply with these formalities may render a contract invalid.

In conclusion, a valid contract requires several essential elements, including an offer and acceptance, consideration, legal capacity, legal purpose, consent, and compliance with formalities. Without any of these elements, the contract is not enforceable. It is crucial to ensure that all the necessary elements are present before entering into a contractual agreement to prevent any legal disputes or complications.