Offer, acceptance, knowledge, consideration and capacity are the five elements of an enforceable contract. Mutual obligation is the binding agreement between the parties to the terms of consideration. If one of the parties has more influence, such as the right to cancel, a court may consider whether or not the mutual obligation has been met. If it is not complied with, the court can invalidate the contract.
The five requirements for creating a valid contract are an offer, acceptance, consideration, competence and legal intent. If the offer is not clear, the contract may not be specific enough for a court to enforce. This is an extreme example, but there are situations where one of the parties is being blackmailed or threatened in other ways so that they cannot complete and sign the contract. The parties must be mutually bound and accept the terms of the contract without external factors influencing the acceptance of the offer.
Judicial Education Center1 University of New MexicoAlbuquerque, NM 87131-0001. Legal laws, such as the Fraud Statute, may require that some types of contracts be in writing and executed with particular formalities, in order for the contract to be enforceable. The Uniform Commercial Code, the original articles of which have been adopted in almost every state, represents a body of statutory laws governing important categories of contracts. The main articles dealing with contract law are Article 1 (General Provisions) and Article 2 (Sales). Capacity refers to the legal capacity that parties involved in a contract have to consent to that contract.
However, what is a crucial factor varies from contract to contract depending on your unique circumstances. If a contract is enforceable, a court can force the parties to perform what they agreed to in the contract. Although there are many other components that a contract can have, there are five requirements for a document to be a legal contract. While the Fraud Statute requires certain types of contracts to be in writing, New Mexico recognizes and enforces oral contracts in some situations where the Fraud Statute does not apply.