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what exactly constitutes a contract most people know that a contract is an agreement between multiple parties that results in a legal and enforceable obligation between them but what I found a lot of people donamp;#39;t know is just how easy a contract is to form there are several different intricate elements that go into forming a legally binding contract that Iamp;#39;m not going to go into in this video but just know that a contract doesnamp;#39;t have to be a formal long document drawn up by a contract lawyer at the most basic level all parties to a contract must be aware that a contract is being formed and have a mutual understanding of what that contract is about there have been contracts written on napkins and sketchy business meetings that end up being enforceable you can even form a verbal contract with someone without even writing anything down though as Iamp;#39;m sure you can imagine they are a lot more difficult to enforce