Simple contracts are legally binding agreements that create rights and obligations between parties. They may be formed in different ways, cover different subject matters, and carry different levels of enforceability.
Definition: A simple contract is a legally binding agreement (oral or in writing) by one party to another based on four core elements of offer, acceptance, intention to create legal relations and consideration (an exchange for value).
Example: You agree to buy a pumpkin spiced latte from a café. The café’s offer is accepted by you paying for it (intention to create legal relations) and the exchange of the latte (goods) for money (consideration) creates a simple contract.
