In contract law, what is typically required from each party?

In contract law, for a contract to be valid and enforceable, it typically requires something of value to be exchanged between the parties, known as consideration. This can take many forms, including money, services, goods, or any tangible or intangible benefit. The essence of consideration is that it demonstrates a mutual exchange; each party must provide something that the other party values.

The requirement of consideration ensures that both parties have a stake in the contract, which promotes fairness and encourages compliance with the agreed terms. Without this exchange of value, a contract may not have legal standing, as it could be considered a gift rather than a binding agreement.

While an agreement on all terms is important for mutual assent, it alone does not constitute a contract without the presence of consideration. Similarly, a signed document or witnesses can enhance the enforceability of a contract or provide evidence of its existence, but they are not strictly required for all contracts, especially verbal agreements where consideration can still be present. The presence of consideration remains the fundamental requirement in establishing a contract's validity, highlighting why this answer is recognized as correct.