For example, say your neighbor admires your bike. You know you`re going to move soon, so you`re offering (an «offer» is part of a contract) to sell it for $100 (consideration) to them. She accepts your offer (acceptance is also part of a contract), but cannot pay you until she goes to the bank. So scribble a short note that describes your two intentions to make that deal and give it a copy of the note. You now have a binding contract, since the elements of a treaty exist, including this «negotiated» exchange. Look at the uncle`s situation above. If the same uncle had instead made the following offer to his 13-year-old nephew: «If you don`t smoke cigarettes, don`t drink alcohol, swear or play cards for money (gambling), I`ll pay you $5,000.» The 21 Reduced to its simplest terms, a contract is a promise or agreement that can be implemented in court. . .