Determine the elements of a valid contract, and discuss how consumers and banks each have a duty of good faith and fair dealing in the banking relationship.

The elements of a valid contract are:
1. Offer and acceptance
2. Mutual consideration
3. Capacity to enter into the agreement
4. Legality of the subject matter
5. Intention to create legal relations
6. Certainty of terms
7. Possibility for performance by parties involved

Consumers and banks each have a duty of good faith and fair dealing in the banking relationship which is an implied covenant of every contract, even if it is not formally stipulated in the written agreement between them. This means that both parties should attempt to act honestly with respect to each other’s interests when carrying out contractual obligations under the agreement, without attempting to take advantage of any vulnerabilities or opportunities that may arise through their knowledge or position within their respective roles in fulfilling their contractual duties towards one another, be they lenders or borrowers. Banks are responsible for taking reasonable measures to ensure financial products offered are suitable for customers’ needs; acting swiftly on customer complaints; providing clear explanations regarding fees and costs associated with services; informing customers about changes that could affect them; being transparent about how investments are managed; providing accurate information about credit products; and making sure marketing materials accurately reflect what consumers will receive from services or products. Consumers must also act in good faith by paying debts regularly, keeping track of accounts, understanding features related to contracts before signing them, ensuring statements received reflect actual account activity, responding promptly when conflicts arise, reporting errors quickly when detected, trying alternative solutions before filing complaints with regulatory bodies.