For a contract to be valid, what must both parties do?

For a contract to be valid, it is essential that both parties agree to the terms of the contract. This mutual agreement, often referred to as "meeting of the minds," is foundational to the formation of any contract. Without this agreement, there is no basis for legal obligations or enforcement. Both parties must understand and accept the terms for the contract to be considered binding.

While signatures play a significant role in affirming that agreement, simply signing a contract does not ensure that both parties fully understand or agree to all terms. Likewise, negotiation is an important part of contract formation, but the mere act of negotiating does not create a valid contract unless both parties have come to a mutual agreement on specific terms. Additionally, legal review may be advisable for clarity or compliance, but it is not a requirement for establishing the validity of the contract itself.

In essence, the fundamental requirement for a valid contract is that both parties must agree to its terms, creating a binding agreement that can be upheld in a court of law if necessary.