What are the four essential elements of all legal contracts?

The four essential elements of all legal contracts are consideration, offer and acceptance, competent parties, and legal purpose.

Consideration refers to something of value that is exchanged between the parties involved in the contract, which is necessary for a contract to be legally binding. Offer and acceptance denote the mutual agreement where one party proposes terms and the other party agrees to those terms, which is fundamental in establishing a contract. Competent parties means that the individuals entering the contract must have the legal capacity to do so; typically, this requires that they are of legal age and mentally competent. Lastly, legal purpose ensures that the contract must be for a lawful objective, meaning that the agreements cannot involve illegal activities or terms.

This collective understanding not only outlines how valid contracts function but also emphasizes the importance of these elements in ensuring that contracts are enforceable under the law.