What is required for a valid contract in Georgia?

For a contract to be valid in Georgia, it must include a bargained-for exchange that involves a legal detriment or benefit. This principle is rooted in contract law, which dictates that both parties must provide something of value to create a binding agreement. This "consideration" can either involve giving up a legal right or receiving a benefit, ensuring that the agreement is enforceable.

The requirement for consideration distinguishes a valid contract from a mere promise or agreement that lacks binding force. Without this exchange, the contract would not hold up in a legal dispute. This foundational concept is critical in determining whether parties are truly entering into a mutual agreement with obligations.

In contrast, the other options fail to satisfy the necessary elements of an enforceable contract. A mutual exchange without consideration does not meet the requirement for a valid contract, and an oral agreement can be valid under certain circumstances, but must still involve consideration. An agreement simply signed by both parties does not automatically validate a contract if the essential elements, such as consideration, are missing. Thus, the requirement of a bargained-for exchange involving a legal detriment or benefit is essential for the formation of a valid contract in Georgia.