A legal contract is a formal agreement between two or more parties that is enforceable by law. It outlines the rights and obligations of each party involved, ensuring that everyone understands their responsibilities. Contracts can cover various topics, such as employment, sales, and services, and must meet specific criteria to be valid, including mutual consent and consideration. Contracts can be written or verbal, but written contracts are generally preferred because they provide clear evidence of the terms agreed upon. Common elements of a contract include the offer, acceptance, consideration, and intention to create legal relations. Understanding these components helps parties avoid disputes and ensures compliance with the law.