Essential Elements of a Contract Every Certified Professional in Supply Management must know the essential elements of a contract. In the procurement process of any products or services supply managers are the ones who examine the contract. This is the reason why it is important for supply managers to know the basic elements of a contract. If one of these five elements is missing, the agreement is not legally binding. For a contract to be valid, it should contain the following elements: Offer A contract must contain a definite and clearly stated offer of goods or services. An offer will lapse according to the following:
- When the time for acceptance expires;
- If the offer is withdrawn before it is accepted;
- After a reasonable time in the circumstances