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What constitutes contract and what constitutes agreement. A valid contract is which of all essential components which present and in which the court would enforce as a legally binding promise.hat constitutes contract and what constitutes agreement. A valid contract is which of all essential components which present and in which the court would enforce as a legally binding promise.
The law will consider a contract to be valid if the agreement contains all of the following elements: 1  offer and acceptance; 2  an intention between the parties to create binding relations; 3  consideration to be paid for the promise made;  legal capacity of the parties to 1  act; genuine consent of the parties; 2  and. legality of the agreement.