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 include essential elements like offer, acceptance, and consideration. To be valid, a contract must be made by parties who have the legal capacity to enter into an agreement, meaning they are of legal age and sound mind. Additionally, the contract must have a lawful purpose and be in writing if it involves significant obligations, such as real estate transactions or loans.