As long as a contract meets the above conditions, it is enforceable in court, which means that a court may compel a non-compliant party to comply with the terms of the contract. In general, a contract should not be written and, in many cases, an oral agreement with all of the above is a valid and enforceable contract. To reach an agreement, the parties only have to agree on their relative rights and obligations, often referred to as the “meeting of minds.” Contracting requirements are more precise and relatively stringent. A contract must contain the following essential elements: the main advantage of an agreement that does not meet the criteria of a contract is that it is by nature informal. If contractors have a long-standing relationship and share a considerable degree of trust, the application of a contract can save time and flexibility in fulfilling agreed commitments. Agreements that do not contain all the necessary elements of the contract may also be more feasible in situations where contracting would impose a prohibitive burden on the parties concerned. If the contractual terms are uncertain or incomplete, the parties do not reach an agreement in the eyes of the law.  An agreement is not a contract and the inability to agree on key issues that may include price or security elements may lead to the failure of the entire contract. However, a court will endeavour to implement commercial contracts where possible by excluding an appropriate design of the contract.  In New South Wales, even if a contract is uncertain or incomplete, the contract may remain binding on the parties if a sufficiently secure and comprehensive clause requires the parties to submit to arbitration, negotiation or mediation.
 1) n. an agreement with certain conditions between two or more persons or entities in which it is promised to do something against a valuable benefit known in return. Since contract law is at the heart of most business relationships, it is one of the three or four most important legal issues and can lead to differences in circumstances and complexity. The existence of a contract requires the recognition of the following actual elements: (a) an offer; b) an acceptance of this offer leading to a meeting of spirits; (c) a promise of execution; (d) a valuable consideration (which may be, in any form, a commitment or payment); (e) a period or event during which the performance must be completed (execution of obligations); (f) performance conditions, including the fulfilment of promises; g) performance.