Contract law serves as your protection in every legal agreement you make in life. Contract law makes these agreements "enforceable", which usually means that it gives the party the power to compensate and obtain money damages caused by the other party due to a breach of contract. The contract itself creates an obligation or duties to do and rules to follow by both parties if either of the party fails to follow the agreement, remedies can be provided by law if the contract is legal and has the essential requirements.
In the business society you never know what the other party is thinking or planning, it may be most of the time good but sometimes you can't avoid people who will try and trick you for their advantage so in this case the contract law plays a very important part of protecting you and making sure that the promises will be kept. A contract has essential elements needed to be legal and enforceable.
First, there should be a "Mutual Assent" aka the meeting of the minds, it means that the parties to a contract must manifest by words or conduct that they have agreed to enter the contract. The usual method of showing mutual assent is by offer and acceptance. Second is the "Capacity", it means that the parties to a contract must have contractual capacity.
Certain persons, such as adjudicated incompetents, have no legal capacity to a contract, while others, such as minors, incompetent persons, and intoxicated persons, have limited capacity to a contract. All others have full contractual capacity. Third is the "Legality of the object" the purpose of the contract must not be criminal, tortious, or otherwise against public policy. The fourth is known as the "Consideration", this is one of the important aspects which is necessary for a party to enter into a contract. Consideration is known as 'the price of a promise' it is the return which a person gets for performing the duties or obligations of the contract.
A party seeking to enforce a contract must show that it conferred some benefit or suffered some detriment that serves as the "Consideration". It is important because it is the part of the glue that makes the contract legally binding it can be anything of value in the common sense, promised to another when making a contract. It can take the form of money, physical objects, services, promised actions, abstinence from a future action or something you wouldn't ordinarily give or do but for the agreement.
A contract without consideration is considered as void, because basically an agreement starts with something you need in exchange for something the other party wants in return then you make a contract to protect yourselves. Contracts can be written, oral, or implied but this four elements needs to be present in every contract you make because if something is missing the court will not recognize your contract as legal and you will not be able to compensate for the damages resulted due to a breach of contract.