When most Americans do something against the law, they don't even realize what the consequences of their actions are. Many people are unaware of the extent of the law and what is technically illegal and what is not. A contract is an agreement that can be enforced in a court of law and is formed by two or more parties agreeing to perform or refrain from performing an act now or in the future (Miller, Cross, and Jentz 289). In other words, it is a set of legal promises between two or more people or companies. Contract law includes the elements of a contract, genuineness of consent, fraud, duty to disclose, disaffirmation and good faith. For a contract to be valid, it must contain certain essential elements. These elements include: agreement, consideration, legality and capacity. Among the 4 elements of a contract, the most important is the agreement because without agreement between the parties, no contract can be formed. The agreement to form a contract includes an offer and acceptance; one party must offer to enter into a legal agreement and the other must accept the terms of the offer (Miller, Cross, and Jentz 290). When the parties reach a “meeting of the minds,” an agreement has been reached. It is important that all parties involved in the contract understand the agreement and that there are no misunderstandings between them. Then comes the reflection between the parties. Consideration can be defined as value, such as cash, given in exchange for a promise or in exchange for performance (Miller, Cross, and Jentz 302). It is broken down into two elements: the legal value and the exchange market. Something of "legally sufficient value" must be given in exchange for the promise which may consist of ...... middle of paper ...... e is a relationship between two or more parties, each party has the duty to disclose. This means that each party must disclose every piece of information accurately; failure to do so may constitute fraud. Good faith is applied in contract law to try to prevent fraud from occurring. Good faith is a general presumption that parties to a contract will treat each other honestly, fairly, and in good faith, so as not to destroy the right of the other party or parties to receive the benefits of the contract ("implied") ). .Works Cited Miller, Roger LeRoy., Frank B. Cross and Gaylord A. Jentz. The essentials of the legal environment. 3rd ed. Mason, OH: South-Western Cengage Learning, 2011. Print. “Implied covenant of good faith and fair dealing”. Wikipedia, the free encyclopedia. Internet. December 11. 2011.