1. Offer: One party makes an offer to another party, indicating a willingness to enter into a contract. The offer must be clear, definite, and communicated to the offeree.
2. Acceptance: The offeree accepts the offer, agreeing to its terms and conditions. Acceptance must be unequivocal and communicated back to the offeror. In some cases, silence or inaction can be considered acceptance, depending on the circumstances.
3. Consideration: Each party must provide something of value to the other party. This can be in the form of money, goods, services, or even a promise to do something in the future. The consideration should be sufficient and not merely nominal.
4. Intention to create legal relations: Both parties must intend for their agreement to be legally binding. This is often implied, but it can also be explicitly stated in the contract.
In addition to these elements, a contract may also require capacity (the ability to enter into a contract, such as being of legal age and sound mind) and legality (the contract's purpose must not be illegal or against public policy).