CONTRACT LAW: General requirements

The requirements (in layman’s terms) for a valid contract is that:

1.   There must be a mutual understanding between the contracting parties.  The must therefore have been a ‘meeting of minds’ when the contract was concluded.

2.   The parties must have intended that the result of the contract may be enforced.

3.   The parties must be allowed to contract.  An example is that a child or a mentally ill person is not allowed (competent) to contract.

4.   The agreement must have certain and definite terms. 

5.   The necessary formalities must be observed.

6.   The agreement must be lawful^.  You may, for instance not allow a teacher to inflict corporal punishment on your child as it in unconstitutional and ‘against the law’.

7.   The contractual obligations must be possible of performance.  You cannot rely on a contract where it would be impossible for either of the parties not to be able to do what is expected of a party.

8.   The content of the agreement must be certain.  It may therefore not be vague.

If these requirements are not met, the contract will be null and void.