A contract requires that the parties intend to enter into a legally binding agreement. That is, the parties entering into the contract must have the intention of creating legal relationships and must understand that the agreement can be imposed by law. The intention to create legal relationships is presumed, therefore in the contract it is not necessary to expressly declare that the legal consequences that will follow are understood and understood. Stan insists that the $100.00 was a deposit on the car and was supposed to be part of the contract to purchase the car. Stan is very persistent and insists that Jim and Laura have a contract to buy the car; therefore, the $100.00 will be applied to the purchase price of the car. Consideration is an essential element of any valid contract. The consideration consists either in an advantage for the promiser or in a damage for the promisee. It is an exchange of present negotiation in exchange for a promise. The contract does not need to be supported by monetary consideration. Consideration is what each party gives to the other as an agreed upon price for the other's promises. The consideration is usually the payment of money, but it need not be; it can be anything of value, including a promise not to do something or to refrain from doing some things