Contracts — part of the contract

A contract is a legally binding promise (written or oral) by one party to fulfil an obligation to another party in return for consideration — usually in the form of wages in return for work. A basic binding contract must comprise four key elements: offer, acceptance, consideration and intent to create legal relations. The contract of employment is a form of contract and must meet these broad requirements.

Although an employment contract is usually in written form, it does not have to be. An oral contract or a mixture of oral and written can be binding on the parties. Of course, a written contract is preferable, as it is least likely to lead to later disputes between the parties as to its exact terms and conditions.