What is necessary for a contract to be considered legally binding?

For a contract to be considered legally binding, mutual agreement and consideration are essential components. Mutual agreement, often referred to as "offer and acceptance," means that both parties involved in the contract must agree to the terms set forth. This ensures that there is a clear understanding and consensus between the parties regarding their respective rights and obligations.

Consideration refers to something of value that is exchanged between the parties. This can be in the form of money, services, goods, or a promise to perform or refrain from an action. The presence of consideration demonstrates that the parties are entering into the agreement for mutual benefit, which is a key requirement for enforceability under contract law.

While other options like a verbal agreement or written documentation may play a role in forming contracts, they do not encompass the fundamental requirements that make a contract legally binding. As such, mutual agreement and consideration are the core elements that ensure a contract is enforceable in a legal context.