This module guide is designed to help you to study the Contract law of England and Wales. Heads of Terms is a document setting out the main terms of a commercial transaction that have been agreed upon in principle.This article will explain what consideration is, what constitutes valid consideration, and the four elements of forming a contract. Capacity to contract means the person or business you are contracting with has the legal ability to enter into a contractual relationship with you. Three friends, a florist (aged 20), a baker (aged 19) and a cook (aged 17), buy a property which is conveyed to them all jointly. You may be entitled to compensation if your Landlord didn't protect your deposit. Our Solicitors can assist you in claiming back up to 3x your deposit. A legal contract is any agreement between two people or businesses where they promise to exchange something of value. If you need legal advice on contract law, including authority, our commercial solicitors can help.