Following are the essential elements of a Valid Contract :

(i) Two or More than Two Parties : The first and foremost characteristic is that a valid contract must have two or more than two persons . A person cannot make a contract with himself . There must be atleast two persons or parties . One of them is known as "Proposer or Promisor" who proposes a proposal and the other one is known as "Ofference or Promisee" who can accept that proposal . 

(ii) Agreement : Am agreement comes into existence by acceptance of an offer .Therefore for making of an agreement one party should make an offer to another party and the other should accept it . Such an acceptance must be absolute and unconditional . 

(iii) Intention to Create Legal Relations : The intentions of the parties be to create legal relationship between them . In daily life or activities we do any such agreement like ñ Go to Play with , Go to Picnic and Club , any Marriage ,Birthday Function take Food together , Walk etc. Thus in all Social Domestic , Morale and Religious Agreement , the usual presumption is that the parties do not indeed to creat legal obligation .

(iv) Contractual Capacity to Parties : A Valid Agreement can be made only by Legally Competent Persons . The law presumes that every person is competent to enter into contract , if he fulfils the following conditions : 

i. He is a Minor .

ii. He is of Sound Mind and 

iii. He is Not Disqualified from Contracting by any Law of the Land to which he is a Subject 

(v) Consent : Consent is the Essence of a Contract . The Parties are said to consent when they agree upto the same thing in the same sense . 

(vi) Lawful Consideration : In simple words , consideration means ìSomething in Returnî . It is also essential for a validity of a contract . A promise to do something or to give something without anything in return would not be enforceable at law and therefore would not be valid . Consideration need not be in cash or in kind . It would not be enforceable at law and therefore would not be valid .