1. There must be consideration (unless the contract is by deed).

2. The parties must have an intention to create legal relations. This requirement usually operates to prevent a purely domestic or social agreement from constituting a contract (see also honour clause).

3. The parties must have capacity to contract.

4. The agreement must comply with any formal legal requirements. In general, no particular formality is required for the creation of a valid contract. It may be oral, written, partly oral and partly written, or even implied from conduct. Certain transactions are, however, valid only if effected by deed (e.g. transfers of shares in British ships) or in writing (e.g. promissory notes, contracts for the sale of interests in land, and guarantees that can at law only be enforced if evidenced in writing).

5. The agreement must be legal (see illegal contract).

6. The agreement must not be rendered void either by some common-law or statutory rule or by some inherent defect, such as operative mistake (see void contract).