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[Music] what is a contract a contract is basically an agreement between two or more entities that creates a legal obligation between them to do something or not to do something this is the most basic legal definition a contract can be very complicated it can be very simple but it does have to meet certain minimum requirements to be considered a legally binding contract and thats what were going to look at right now elements of a binding contract so there must be offerin acceptance in other words a party must make an offer and another party must accept the offer there must be mutuality of obligation meaning that the both parties must intend to be legally bound by the agreement or contract consideration there must be something of value exchanged or for action or inaction so you can exchange something you know kind of a quid pro quo at this for that or you could exchange something of value to require action or to require some sort of in action and well get into a little bit more detail