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A contract is an agreement to do or not to do something, with four essential elements: capable parties, lawful object, consideration, and offer and acceptance. Capable parties must be at least 18 and of sound mind, with exceptions for authorized representatives, power of attorney, vadhu share, and emancipated minors. Emancipated minors are under 18 and can act independently. Contracts must have a legal purpose, such as not being used for illegal activities like murder.