A contract is an agreement entered into by two or more parties with the serious intention of creating a legal obligation. Contract law provides a legal framework within which persons can transact business and exchange resources, secure in the knowledge that the law will uphold their agreements and, if necessary, enforce them. 

For a contract to be considered valid and binding in South Africa, the following requirements must be met:

    1. There must be mutual agreement between the contracting parties.
    2. The parties must have seriously intended the agreement to result in terms which can be enforced.
    3. The parties must have the capacity to contract.
    4. The agreement must have certain and definite terms.
    5. The necessary formalities must be observed.
    6. The agreement must be lawful.
    7. The contractual obligations must be possible of performance.
    8. The content of the agreement must be certain.