What Makes a Contract Valid? Four essential elements: offer, acceptance, consideration (something of value exchanged), and mutual intent to be bound. Types of Contracts Written vs. oral (written strongly preferred) Express vs. implied Bilateral (both parties obligated) vs. unilateral Contract Formation Offer made with specific terms, acceptance without changes (counter-offer starts new negotiation), consideration flows both ways, parties have capacity to contract. Common Contract Terms Explained Indemnification, liquidated damages, force majeure, severability, and other legal terms demystified for business owners. When You Need a Lawyer High-value deals, complex terms, government contracts, disputes, or when other party has legal representation.