<P> A contract is a voluntary arrangement between two or more parties that is enforceable by law as a binding legal agreement . Contract is a branch of the law of obligations in jurisdictions of the civil law tradition . Contract law concerns the rights and duties that arise from agreements . </P> <P> A contract arises when the parties agree that there is an agreement . Formation of a contract generally requires an offer, acceptance, consideration, and a mutual intent to be bound . Each party to a contract must have capacity to enter the agreement . Minors, intoxicated persons, and those under a mental affliction may have insufficient capacity to enter a contract . Some types of contracts may require formalities, such as a memorialization in writing . </P> <P> At common law, the elements of a contract are offer, acceptance, intention to create legal relations, and consideration . </P> <P> Not all agreements are necessarily contractual, as the parties generally must be deemed to have an intention to be legally bound . A so - called gentlemen's agreement is one which is not intended to be legally enforceable, and which is "binding in honour only". </P>

Which set of concepts must be in place to form a valid contract