These five essential elements of a construction contract can result in major vulnerabilities if overlooked: 1. Full Name, Address, and Signatures of Both Parties. Though this may sound obvious, this commonly overlooked element of construction contracts is required to make the contract legally binding. from the section 4 of sale of goods act, we can understand that the following four elements are essential for a valid contract of sale:- 1.there must be two parties 2.subject matter of sale must Drafting a contract and having all parties sign on it does not necessarily make it enforceable in a court of law. For an agreement not to be void or voidable, a few essential elements must be present.