19 August 2026 · 2 min read
The six things a contract actually needs
A contract is not defined by having a signature line at the bottom. It is defined by six things being true, and a document can fail every one of them while still looking exactly like a contract.
A signature makes a document look official. It does not, on its own, make it a contract. Contract law asks six separate questions, and a document can have a beautifully formatted signature block and still fail all six of them.
1. Offer
One party has to propose specific terms clearly enough that the other side can simply say yes to them - a price, a scope, a deadline. "Let's work something out sometime" is not an offer; a rate, a scope of work, and a start date is.
2. Acceptance
The other party has to agree to those same terms, without changing them. Agreeing to different terms is not acceptance - it is a counter-offer, and the original offer is now off the table.
3. Consideration
Something of value has to move both ways. Money for services is the obvious case, but consideration can be a promise, access, or anything else with value - what it cannot be is nothing. A one-sided promise, with nothing given in return, is usually not an enforceable contract at all.
4. Capacity
Both parties have to be legally able to enter into the agreement - old enough, mentally competent, and, for a company, actually authorised to sign on its behalf. A contract signed by someone without the authority to bind their employer can be challenged on capacity alone, however clean the rest of the document is.
5. Mutual intent
Both sides have to have intended to create a legally binding relationship, not a casual understanding between friends. This is why a text message saying "sure, I'll do it for 500" can be a contract in a business context and nothing at all between two people splitting a dinner bill.
6. Legality
The subject of the contract has to be legal. A contract to do something illegal is not enforceable no matter how carefully the rest is written - courts will not step in to enforce an agreement to break the law.
What this means for the document itself
A signature does not create any of these six things. It is evidence that a specific person agreed to whatever terms the document already contains. This is why a contract signed by someone with no authority to sign it, or offering nothing in return, can be unenforceable even with a cryptographic signature and a complete audit trail attached to it.
A signing platform can prove who signed and when, to a very high standard. It cannot verify capacity or legality for you - that is a different job, done before the document is ever uploaded, not after.
Good Seal is a free DocuSign alternative: upload a PDF, place the fields, email a link. The other side signs in the browser and everyone gets a sealed copy.
Send a document, free