What are the four essential elements of a contract?

The four essential elements of a contract are capacity, mutual assent, consideration, and lawful purpose.

Capacity refers to the parties' legal ability to enter into a contract, meaning they must be of sound mind and of a certain age, typically 18 years or older. This ensures that all parties involved can understand and agree to the contract terms.

Mutual assent, often referred to as a "meeting of the minds," signifies that all parties have a clear understanding and agreement on the contract terms. This is typically evidenced by an offer from one party and acceptance by another.

Consideration is the value that each party agrees to exchange in the contract. It can be anything of value, such as money, services, or goods, and is essential for a contract's enforceability. Without consideration, a contract cannot be considered legally binding.

Lastly, lawful purpose means the contract's goals must be legal and not violate public policy. A contract that involves illegal activities would not be enforceable in a court of law.

This combination of elements ensures that contracts are fair, enforceable, and recognized by law, thus making this choice the most accurate representation of what constitutes a contract.