A valid contract is a legally binding agreement between two or more parties that meets specific requirements. To be valid, a contract must include an offer, acceptance, consideration (something of value exchanged), and the capacity of the parties to enter into the agreement. Additionally, the contract must have a lawful purpose and be in a form that is acceptable under the law. If any of these elements are missing, the contract may be considered void or unenforceable. For example, a contract involving illegal activities is not valid. Understanding these components helps ensure that agreements are recognized and upheld in a court of law.