The legal requirements for setting up a contract between two parties depend on the jurisdiction in which the contract is to be executed. Generally speaking, contracts must be entered into by two or more parties who are legally competent (i.e., they have the mental capacity and legal authority) to enter into an agreement. Additionally, there must be consideration exchanged between both parties—something of value such as money, property, services etc.—in exchange for a promise of performance or non-performance of some act. Furthermore, contracts should include an offer that is accepted with clear terms and conditions regarding what each party will do; and finally, the contract should also include language specifying how disputes may be resolved if necessary. It is important to note that certain jurisdictions may have additional specific requirements related to entering into a valid contract—such as requiring it to be in writing or requiring signatures from all parties involved—so it is important for both sides to seek advice from qualified counsel prior to signing any contractual documents. Furthermore, depending on the subject matter being addressed by a particular contract (e.g., real estate transactions), other requirements may exist that must be met before it can become legally binding (e.g., disclosure statements).
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