What must be present for a contract to be considered enforceable?

For a contract to be considered enforceable, there must be an offer and acceptance. This fundamental principle forms the basis of contract law. An offer is a clear proposal made by one party to another, and acceptance is the agreement of the second party to the terms of that offer.

When both parties manifest their assent to the contract’s terms – that is, one party makes an offer, and the other accepts it – a mutual agreement is formed. This meeting of the minds is essential for the enforceability of the contract. Without this clear offer and acceptance, a contract cannot be legally binding, as it may lack the essential elements of agreement.

While an acceptance letter from both parties could indeed serve as evidence of acceptance, it is not a requirement for an enforceable contract. Financial investments or commitments from all parties may be important in some agreements but are not prerequisites for enforceability. Similarly, governmental approval can be necessary in specific contexts (like certain regulated transactions), but in general contract law, it is not a universal requirement.