What is typically required for a contract to be legally binding?

A contract is considered legally binding when it meets several essential elements, one of which is the presence of competent parties. Competent parties refer to individuals who have the legal capacity to enter into a contract, meaning they are of sound mind, of legal age, and not under duress or undue influence. This ensures that all parties involved understand and agree to the terms of the contract, which is fundamental for its enforceability.

While written contracts and witness signatures can be important for certain types of agreements or jurisdictions, they are not universally required for every contract to be legally binding. Similarly, oral agreements can be enforceable but may lead to issues with proof and interpretation. Thus, the agreement among competent parties serves as the cornerstone of any valid contract, establishing the agreement's legitimacy and enforceability in a legal context.