A Writing

• Under most circumstances, a contract must be in writing. However, there are various exceptions under Massachusetts law. For example, under the Uniform Commercial Code, a contract for the sale of goods must be in writing only if the value of the goods is more than $500. Another exception where a written contract isn't necessary is when a contract is created for the sale of personal property worth less than $5,000.
  
  

Identification of the Parties

• Under Massachusetts law, all parties to the contract must be properly identified. A contract between two people, for example, must include both names. A contract between two businesses must include the proper name of both businesses. Proper contract formation includes an identification of the parties that's specific and unique so there's no misunderstanding as to who has entered into the contract.
  
  

Recital of Consideration

• In a contract, consideration is something of value that each party is somehow receiving that would have enticed the party to enter into the contract. Under Massachusetts law, a contract isn't valid unless it includes consideration for both parties. For example, a contract isn't properly formed if one party receives something of value and the other party receives nothing at all.
  
  

Bases for Rescission

• Massachusetts law requires that the parties avoid certain bases for rescission when forming a contract. Bases for rescission are reasons that one or more party may properly rely upon to claim that a challenged contract isn't valid. For example, if one party misrepresented a variable in the contract or conducted fraud in some way, a court may find that the contract wasn't properly formed.