In the context of contracts, what is required for an agreement to be legally enforceable?

For an agreement to be legally enforceable, it must contain consideration and mutual assent. Consideration refers to something of value that is exchanged between the parties involved, which can be a promise, a service, or a monetary exchange. Mutual assent, often described as a "meeting of the minds," indicates that all parties involved agree to the terms and intend to be bound by the agreement.

The presence of these two elements helps ensure that both parties willingly and knowingly entered the agreement. Without consideration, there is no incentive for the parties to fulfill their promises, and without mutual assent, it cannot be established that both parties are in agreement about the essential terms of the contract.

While certain contracts, especially those that fall under statutory requirements, may need to be in writing or signed to be enforceable, it is not a blanket requirement for all contracts. The approval of a government agency is not necessary for the majority of private contracts, and a failure to perform, which indicates a breach, does not relate to the initial enforceability of an agreement but rather its execution.