The previous chapter explained how a contract can be concluded. A contract has legal effects if it is validly concluded. Upon conclusion, the following requirements must be cumulatively met:

• Legal and contractual capacity of the contracting parties,
• Mutual consent of the contracting parties,
• Possibility, permissibility, definiteness, and determinability of the subject of performance,
• Possibility and permissibility of the contractual basis, and
• Proper form, if required by law.⁹⁹