A contract is generally a written or spoken agreement between persons or entities that includes obligations for each party (mutual obligations or mutuality) and enough specific information to be enforceable by either party (specificity).

The elements of forming an enforceable contract are generally (1) an offer made; (2) acceptance of the offer; and (3) consideration given by each party for the other party’s performance of the agreement—such as money in exchange for products or services, or mutual promises exchanged—which is often referred to as the bargained-for exchange.

The word "agreement" is often used interchangeably with the word "contract," and a document labeled as an agreement (with the necessary legal elements included) is as enforceable as a document labeled as a contract.

In Colorado, as in other states, a contract is a legally binding agreement between parties that can be written or oral. The essential elements required to form an enforceable contract in Colorado include an offer, acceptance of that offer, and consideration, which is something of value exchanged between the parties. This consideration must be a bargained-for exchange, meaning each party must provide something of value in return for something else of value. The terms of the contract must be specific enough to provide a basis for determining what each party is obligated to do. If a contract meets these requirements, it is generally enforceable in a court of law. The terms 'agreement' and 'contract' are often used synonymously, and the enforceability of the document does not depend on whether it is labeled as an 'agreement' or a 'contract' as long as the necessary legal elements are present. It is important to note that certain types of contracts in Colorado may be required by law to be in writing to be enforceable, such as those involving real estate transactions, under the statute of frauds.