What are the essential elements of a legally binding contract?

The essential elements of a legally binding contract include an offer, acceptance, consideration, legality, and competent parties.

An offer is a clear expression of willingness to enter into a contract on specified terms, while acceptance refers to the agreement by the other party to those terms. Consideration involves something of value that is exchanged between the parties, which can be in the form of money, services, or goods. Legality ensures that the contract's purpose is legal and not against public policy. Finally, competent parties indicates that the individuals involved must have the legal capacity to make binding agreements, which usually means they are of legal age and sound mind.

This combination of elements ensures that a contract is not only formed adequately but also enforceable under the law. The other options do not encompass all these critical components; for instance, some options omit consideration or focus on elements like genuineness and written form, which are not universally required for all types of contracts.