Define and discuss the four essential elements of a valid contract - support your answers by providing an example for each of the elements.

HINT:

In both the common and civil law traditions, there are 4 essential elements in a valid contract:

1. There must be an intention on the part of each party to MAKE legal relationship

2. There must be an offer and an unequivocal acceptance of the offer

3. The parties to the contract must have the legal capacity to make a contract (if the parties are corporate, they must be properly incorporated and acting within their corporate powers, if the parties are individuals, they must not be diminished by alcohol, drugs or mental infirmity)

4. The contract must be for a legal purpose