Valid Contract
An agreement that has the four essential elements: competent parties, mutual assent, a legal purpose, and consideration.
A valid contract meets the essential requirements: competent parties, mutual assent through offer and acceptance, a legal purpose, and consideration. Validity describes whether an agreement was legally formed.
Enforceability is a separate question. A contract for the sale of real property generally must be in writing and signed by the party to be charged to satisfy the Statute of Frauds. An agreement may be valid in form yet unenforceable because a legal defense applies.
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- Offer and Acceptance (Mutual Assent)
The matching offer and acceptance that create the mutual assent, or meeting of the minds, required for a contract.
- Consideration
Something of legal value that each party exchanges, which is required for a valid contract.
- Statute of Frauds
The rule that contracts for the sale of real property must be in writing and signed to be enforceable.
This definition is Texas real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.