diff --git a/ai/backend-context.md b/ai/backend-context.md
index e7825fa..f3b5ddd 100644
--- a/ai/backend-context.md
+++ b/ai/backend-context.md
@@ -15,11 +15,14 @@ intentionally omitted here - update this section as entities land.
 
 - Look at similar entities for reference before writing anything new
 - Entities: constructor with properties, getters
-- DTOs: simple data containers for creation (e.g. `CreateSetDto`)
+- DTOs: simple data containers for creation (e.g. `CreateElementDto`)
 - Repositories: interfaces that define data access
   - Do not write unit tests for concrete repository implementations
     (e.g. `Postgres*Repository`). They are exercised by e2e tests.
     Use cases are tested with fake repositories.
+  - Repository methods that find records by a foreign key should accept
+    the related entity, not a raw id (e.g. `findBySet(Set $set)`, not
+    `findBySetId(int $setId)`).
 - Use cases: business logic with Request objects
   - When throwing exceptions, add `@throws` docblock
 - Fakes: in-memory implementations for testing
@@ -50,16 +53,33 @@ to be added to the repo; the Nix flake already provides
 Constructs LLMs default to that this project forbids. Name the trap
 explicitly so you catch yourself before writing it.
 
-| Anti-pattern | Forbidden | Required |
-|---|---|---|
-| Arrow function | `fn ($x) => $x->getId()` | `function ($x) { return $x->getId(); }` |
-| Inline FQCN type | `function f(): \Psr\Http\Message\ResponseInterface` | `use Psr\Http\Message\ResponseInterface;` then `function f(): ResponseInterface` |
-| Inline `::class` | `Container::get(\App\Foo\Bar::class)` | `use App\Foo\Bar;` then `Container::get(Bar::class)` |
-| Default param | `function f(int $count = 10)` | `function f(int $count)` |
-| Default in fake | `public function create(Dto $dto, bool $strict = true)` | no default; every caller passes a value |
-| Lookup returns stored ref | `return $this->items[$id] ?? null;` | rebuild a new instance with the stored fields |
-| Short variable name | `$t`, `$n`, `$res`, `$req`, `$e` | `$text`, `$node`, `$response`, `$request`, `$exception` |
-| Em dash | `// fetches user — by email` | `// fetches user - by email` |
+- Arrow function:
+  - Forbidden: `fn ($node) => $node->getId()`
+  - Required: `function ($node) { return $node->getId(); }`
+- Inline FQCN type:
+  - Forbidden: `function f(): \Psr\Http\Message\ResponseInterface`
+  - Required: import `ResponseInterface`, then return `ResponseInterface`
+- Inline `::class`:
+  - Forbidden: `Container::get(\App\Foo\Bar::class)`
+  - Required: import `Bar`, then call `Container::get(Bar::class)`
+- Default param:
+  - Forbidden: `function f(int $count = 10)`
+  - Required: `function f(int $count)`
+- Default in fake:
+  - Forbidden: `public function create(Dto $dto, bool $strict = true)`
+  - Required: no default; every caller passes a value
+- Lookup returns stored ref:
+  - Forbidden: `return $this->items[$id] ?? null;`
+  - Required: rebuild a new instance with the stored fields
+- FK lookup by id:
+  - Forbidden: `findBySetId(int $setId)`
+  - Required: `findBySet(Set $set)`
+- Short variable name:
+  - Forbidden: one-letter or abbreviated names (`$t`, `$n`, `$res`)
+  - Required: explicit names (`$text`, `$node`, `$response`)
+- Em dash:
+  - Forbidden: comment or docblock containing an em dash character
+  - Required: use `-`
 
 When generating code, scan the diff for these patterns before writing it
 to disk. If you catch one mid-write, rewrite that line.
diff --git a/ai/shared.md b/ai/shared.md
index c07271e..3d0522e 100644
--- a/ai/shared.md
+++ b/ai/shared.md
@@ -16,7 +16,9 @@ guides (`backend-context.md`, `frontend-context.md`) extend these.
 4. Implement the code to make the test pass
 5. Run the test to confirm it passes
 6. Commit the implementation
-7. Repeat for each new behavior
+7. Repeat this red/green commit cycle for each new behavior. Do not
+   batch multiple behaviors into one failing-test commit and one
+   implementation commit when they can be reviewed separately.
 
 ## Code style
 
@@ -32,8 +34,8 @@ guides (`backend-context.md`, `frontend-context.md`) extend these.
   and fakes - if a helper accepts a value, every caller must supply it.
 - First, explore the codebase to understand existing patterns - look at similar
   files for reference before writing anything
-- Never use em dashes (—) in code, comments, or docblocks - use hyphens (-)
-  instead
+- Never use em dash characters in code, comments, or docblocks - use
+  hyphens (-) instead
 
 ## Git commit style
 
@@ -51,9 +53,21 @@ guides (`backend-context.md`, `frontend-context.md`) extend these.
 ## Git commits
 
 - Tests should be committed first, before implementation
+- Prefer small, reviewable commits. Commit each meaningful step as soon as
+  it is green and the pre-commit checklist passes.
 - One logical change per commit - a commit may span multiple files when they
   form a single logical unit (e.g. a use case with its request and exception,
   or a Vue SFC with its Pinia store and route entry)
+- Split commits by behavior, public contract, migration, wiring, docs, or
+  mechanical formatting when those parts can be reviewed independently.
+- A multi-file commit is okay only when the files form one inseparable
+  change. Do not use "one logical change" to justify batching adjacent work.
+- Do not batch several behaviors into one "tests" commit and one
+  "implementation" commit. Repeat the red/green cycle per behavior.
+- Do not bundle backend and frontend changes unless both are required for
+  the same user-facing behavior.
+- Do not bundle cleanup, refactors, renames, or formatting with feature
+  behavior.
 - Keep commits focused: not one file per commit, not unrelated work batched
 - Make commits frequent - commit each meaningful logical step as you go
 - Commits are for reviewing and documenting the development of code
@@ -83,6 +97,8 @@ mechanical, not aspirational - a "yes" to all is required.
 - [ ] On a feature branch (not master/main).
 - [ ] This commit is one logical change. If it spans unrelated changes,
       stop and split it.
+- [ ] This commit has been split as far as it can be while staying
+      reviewable. If any part can land independently, split it.
 - [ ] Tests for new behavior were committed BEFORE this implementation
       (or this commit IS the failing-test commit).
 
@@ -95,6 +111,8 @@ mechanical, not aspirational - a "yes" to all is required.
       (PHP or TS).
 - [ ] Find/lookup repository methods return new instances, not stored
       references.
+- [ ] Backend repository methods that find by a foreign key accept the
+      related entity, not a raw id.
 - [ ] No em dashes (use hyphens).
 - [ ] Variable names are explicit (no `$t`, `n`, `res`, `req`, `e`, etc.).
 - [ ] No `any` in TypeScript - use concrete types or `unknown` with a
diff --git a/backend/app/Element/CreateElementDto.php b/backend/app/Element/CreateElementDto.php
new file mode 100644
index 0000000..db77dd7
--- /dev/null
+++ b/backend/app/Element/CreateElementDto.php
@@ -0,0 +1,14 @@
+<?php
+
+namespace App\Element;
+
+use App\Set\Set;
+
+class CreateElementDto
+{
+    public function __construct(
+        public Set $set,
+        public string $title,
+        public ?Element $parentElement,
+    ) {}
+}
diff --git a/backend/app/Element/Element.php b/backend/app/Element/Element.php
new file mode 100644
index 0000000..9ef75f6
--- /dev/null
+++ b/backend/app/Element/Element.php
@@ -0,0 +1,35 @@
+<?php
+
+namespace App\Element;
+
+use App\Set\Set;
+
+class Element
+{
+    public function __construct(
+        private int $id,
+        private string $title,
+        private Set $set,
+        private ?Element $parentElement,
+    ) {}
+
+    public function getId(): int
+    {
+        return $this->id;
+    }
+
+    public function getTitle(): string
+    {
+        return $this->title;
+    }
+
+    public function getSet(): Set
+    {
+        return $this->set;
+    }
+
+    public function getParentElement(): ?Element
+    {
+        return $this->parentElement;
+    }
+}
diff --git a/backend/app/Element/ElementModel.php b/backend/app/Element/ElementModel.php
new file mode 100644
index 0000000..119d287
--- /dev/null
+++ b/backend/app/Element/ElementModel.php
@@ -0,0 +1,40 @@
+<?php
+
+namespace App\Element;
+
+use Illuminate\Database\Eloquent\Builder;
+use Illuminate\Database\Eloquent\Model;
+
+/**
+ * @property int $id
+ * @property int $set_id
+ * @property string $title
+ * @property int|null $parent_element_id
+ *
+ * @method static Builder<static>|ElementModel newModelQuery()
+ * @method static Builder<static>|ElementModel newQuery()
+ * @method static Builder<static>|ElementModel query()
+ * @method static Builder<static>|ElementModel whereId($value)
+ * @method static Builder<static>|ElementModel whereParentElementId($value)
+ * @method static Builder<static>|ElementModel whereSetId($value)
+ * @method static Builder<static>|ElementModel whereTitle($value)
+ *
+ * @mixin \Eloquent
+ */
+class ElementModel extends Model
+{
+    protected $table = 'elements';
+
+    public $timestamps = false;
+
+    protected $fillable = [
+        'set_id',
+        'title',
+        'parent_element_id',
+    ];
+
+    protected $casts = [
+        'set_id' => 'integer',
+        'parent_element_id' => 'integer',
+    ];
+}
diff --git a/backend/app/Element/ElementRepository.php b/backend/app/Element/ElementRepository.php
new file mode 100644
index 0000000..4f39fb6
--- /dev/null
+++ b/backend/app/Element/ElementRepository.php
@@ -0,0 +1,17 @@
+<?php
+
+namespace App\Element;
+
+use App\Set\Set as DomainSet;
+
+interface ElementRepository
+{
+    public function create(CreateElementDto $dto): Element;
+
+    public function find(int $id): ?Element;
+
+    /**
+     * @return Element[]
+     */
+    public function findBySet(DomainSet $set): array;
+}
diff --git a/backend/app/Element/EloquentElementRepository.php b/backend/app/Element/EloquentElementRepository.php
new file mode 100644
index 0000000..56ec2e6
--- /dev/null
+++ b/backend/app/Element/EloquentElementRepository.php
@@ -0,0 +1,78 @@
+<?php
+
+namespace App\Element;
+
+use App\Set\Set as DomainSet;
+use App\Set\SetRepository;
+use DomainException;
+
+class EloquentElementRepository implements ElementRepository
+{
+    public function __construct(private SetRepository $setRepo) {}
+
+    public function create(CreateElementDto $dto): Element
+    {
+        $model = ElementModel::create([
+            'set_id' => $dto->set->getId(),
+            'title' => $dto->title,
+            'parent_element_id' => $dto->parentElement?->getId(),
+        ]);
+
+        return new Element(
+            id: $model->id,
+            title: $dto->title,
+            set: $dto->set,
+            parentElement: $dto->parentElement,
+        );
+    }
+
+    public function find(int $id): ?Element
+    {
+        $model = ElementModel::find($id);
+
+        return $model === null ? null : $this->toDomain($model);
+    }
+
+    /**
+     * @return Element[]
+     */
+    public function findBySet(DomainSet $set): array
+    {
+        $models = ElementModel::where('set_id', $set->getId())
+            ->orderBy('id')
+            ->get();
+        $elements = [];
+        foreach ($models as $model) {
+            $elements[] = $this->toDomain($model);
+        }
+
+        return $elements;
+    }
+
+    private function toDomain(ElementModel $model): Element
+    {
+        $set = $this->setRepo->find($model->set_id);
+        if ($set === null) {
+            throw new DomainException(
+                "Set with id: {$model->set_id} doesnt exist"
+            );
+        }
+
+        $parentElement = null;
+        if ($model->parent_element_id !== null) {
+            $parentElement = $this->find($model->parent_element_id);
+            if ($parentElement === null) {
+                throw new DomainException(
+                    "Element with id: {$model->parent_element_id} doesnt exist"
+                );
+            }
+        }
+
+        return new Element(
+            id: $model->id,
+            title: $model->title,
+            set: $set,
+            parentElement: $parentElement,
+        );
+    }
+}
diff --git a/backend/app/Element/UseCases/CreateElement/CreateElement.php b/backend/app/Element/UseCases/CreateElement/CreateElement.php
new file mode 100644
index 0000000..6656338
--- /dev/null
+++ b/backend/app/Element/UseCases/CreateElement/CreateElement.php
@@ -0,0 +1,85 @@
+<?php
+
+namespace App\Element\UseCases\CreateElement;
+
+use App\Element\CreateElementDto;
+use App\Element\Element;
+use App\Element\ElementRepository;
+use App\Exceptions\BadRequestException;
+use App\Set\Set as DomainSet;
+use App\Set\SetRepository;
+use DomainException;
+
+class CreateElement
+{
+    public function __construct(
+        private ElementRepository $elementRepo,
+        private SetRepository $setRepo,
+    ) {}
+
+    /**
+     * @throws BadRequestException
+     * @throws DomainException
+     */
+    public function execute(CreateElementRequest $request): Element
+    {
+        if ($request->setId === null) {
+            throw new BadRequestException('setId is required');
+        }
+        if ($request->title === null || $request->title === '') {
+            throw new BadRequestException('title is required');
+        }
+
+        $set = $this->setRepo->find($request->setId);
+        if ($set === null) {
+            throw new DomainException(
+                "Set with id: {$request->setId} doesnt exist"
+            );
+        }
+
+        if ($request->parentElementId === null) {
+            $this->validateNoRootElementExists($set);
+
+            return $this->elementRepo->create(new CreateElementDto(
+                set: $set,
+                title: $request->title,
+                parentElement: null,
+            ));
+        }
+
+        $parentElement = $this->elementRepo->find(
+            $request->parentElementId
+        );
+        if ($parentElement === null) {
+            throw new DomainException(
+                "Element with id: {$request->parentElementId} doesnt exist"
+            );
+        }
+        if ($parentElement->getSet()->getId() !== $set->getId()) {
+            throw new DomainException(
+                'Parent element must belong to the same set'
+            );
+        }
+
+        return $this->elementRepo->create(new CreateElementDto(
+            set: $set,
+            title: $request->title,
+            parentElement: $parentElement,
+        ));
+    }
+
+    /**
+     * @throws DomainException
+     */
+    private function validateNoRootElementExists(DomainSet $set): void
+    {
+        $elements = $this->elementRepo->findBySet($set);
+        foreach ($elements as $element) {
+            if ($element->getParentElement() === null) {
+                throw new DomainException(
+                    'A root element already exists for this set'
+                );
+            }
+        }
+    }
+}
diff --git a/backend/app/Element/UseCases/CreateElement/CreateElementRequest.php b/backend/app/Element/UseCases/CreateElement/CreateElementRequest.php
new file mode 100644
index 0000000..b9f0dbd
--- /dev/null
+++ b/backend/app/Element/UseCases/CreateElement/CreateElementRequest.php
@@ -0,0 +1,12 @@
+<?php
+
+namespace App\Element\UseCases\CreateElement;
+
+class CreateElementRequest
+{
+    public function __construct(
+        public ?int $setId,
+        public ?string $title,
+        public ?int $parentElementId,
+    ) {}
+}
diff --git a/backend/app/Providers/RepositoryServiceProvider.php b/backend/app/Providers/RepositoryServiceProvider.php
index b4f42b2..4b4b4f3 100644
--- a/backend/app/Providers/RepositoryServiceProvider.php
+++ b/backend/app/Providers/RepositoryServiceProvider.php
@@ -4,6 +4,10 @@ namespace App\Providers;
 
 use App\Auth\EloquentSessionRepository;
 use App\Auth\SessionRepository;
+use App\Element\ElementRepository;
+use App\Element\EloquentElementRepository;
+use App\Set\EloquentSetRepository;
+use App\Set\SetRepository;
 use App\User\EloquentUserRepository;
 use App\User\UserRepository;
 use Illuminate\Support\ServiceProvider;
@@ -20,5 +24,13 @@ class RepositoryServiceProvider extends ServiceProvider
             SessionRepository::class,
             EloquentSessionRepository::class
         );
+        $this->app->bind(
+            SetRepository::class,
+            EloquentSetRepository::class
+        );
+        $this->app->bind(
+            ElementRepository::class,
+            EloquentElementRepository::class
+        );
     }
 }
diff --git a/backend/app/Set/CreateSetDto.php b/backend/app/Set/CreateSetDto.php
new file mode 100644
index 0000000..2999a88
--- /dev/null
+++ b/backend/app/Set/CreateSetDto.php
@@ -0,0 +1,10 @@
+<?php
+
+namespace App\Set;
+
+class CreateSetDto
+{
+    public function __construct(
+        public string $name,
+    ) {}
+}
diff --git a/backend/app/Set/EloquentSetRepository.php b/backend/app/Set/EloquentSetRepository.php
new file mode 100644
index 0000000..ef8976e
--- /dev/null
+++ b/backend/app/Set/EloquentSetRepository.php
@@ -0,0 +1,41 @@
+<?php
+
+namespace App\Set;
+
+class EloquentSetRepository implements SetRepository
+{
+    public function create(CreateSetDto $dto): Set
+    {
+        $model = SetModel::create([
+            'name' => $dto->name,
+        ]);
+
+        return $this->toDomain($model);
+    }
+
+    public function find(int $id): ?Set
+    {
+        $model = SetModel::find($id);
+
+        return $model === null ? null : $this->toDomain($model);
+    }
+
+    public function getAll(): array
+    {
+        $models = SetModel::orderBy('id')->get();
+        $sets = [];
+        foreach ($models as $model) {
+            $sets[] = $this->toDomain($model);
+        }
+
+        return $sets;
+    }
+
+    private function toDomain(SetModel $model): Set
+    {
+        return new Set(
+            id: $model->id,
+            name: $model->name,
+        );
+    }
+}
diff --git a/backend/app/Set/Set.php b/backend/app/Set/Set.php
new file mode 100644
index 0000000..d045e70
--- /dev/null
+++ b/backend/app/Set/Set.php
@@ -0,0 +1,21 @@
+<?php
+
+namespace App\Set;
+
+class Set
+{
+    public function __construct(
+        private int $id,
+        private string $name,
+    ) {}
+
+    public function getId(): int
+    {
+        return $this->id;
+    }
+
+    public function getName(): string
+    {
+        return $this->name;
+    }
+}
diff --git a/backend/app/Set/SetModel.php b/backend/app/Set/SetModel.php
new file mode 100644
index 0000000..c30e2c9
--- /dev/null
+++ b/backend/app/Set/SetModel.php
@@ -0,0 +1,27 @@
+<?php
+
+namespace App\Set;
+
+use Illuminate\Database\Eloquent\Builder;
+use Illuminate\Database\Eloquent\Model;
+
+/**
+ * @property int $id
+ * @property string $name
+ *
+ * @method static Builder<static>|SetModel newModelQuery()
+ * @method static Builder<static>|SetModel newQuery()
+ * @method static Builder<static>|SetModel query()
+ * @method static Builder<static>|SetModel whereId($value)
+ * @method static Builder<static>|SetModel whereName($value)
+ *
+ * @mixin \Eloquent
+ */
+class SetModel extends Model
+{
+    protected $table = 'sets';
+
+    public $timestamps = false;
+
+    protected $fillable = ['name'];
+}
diff --git a/backend/app/Set/SetRepository.php b/backend/app/Set/SetRepository.php
new file mode 100644
index 0000000..7f1efcd
--- /dev/null
+++ b/backend/app/Set/SetRepository.php
@@ -0,0 +1,15 @@
+<?php
+
+namespace App\Set;
+
+interface SetRepository
+{
+    public function create(CreateSetDto $dto): Set;
+
+    public function find(int $id): ?Set;
+
+    /**
+     * @return Set[]
+     */
+    public function getAll(): array;
+}
diff --git a/backend/database/migrations/2026_05_24_000000_sets_table.php b/backend/database/migrations/2026_05_24_000000_sets_table.php
new file mode 100644
index 0000000..a39348b
--- /dev/null
+++ b/backend/database/migrations/2026_05_24_000000_sets_table.php
@@ -0,0 +1,21 @@
+<?php
+
+use Illuminate\Database\Migrations\Migration;
+use Illuminate\Database\Schema\Blueprint;
+use Illuminate\Support\Facades\Schema;
+
+return new class extends Migration
+{
+    public function up(): void
+    {
+        Schema::create('sets', function (Blueprint $table) {
+            $table->id();
+            $table->string('name');
+        });
+    }
+
+    public function down(): void
+    {
+        Schema::dropIfExists('sets');
+    }
+};
diff --git a/backend/database/migrations/2026_05_24_000001_elements_table.php b/backend/database/migrations/2026_05_24_000001_elements_table.php
new file mode 100644
index 0000000..377ba38
--- /dev/null
+++ b/backend/database/migrations/2026_05_24_000001_elements_table.php
@@ -0,0 +1,25 @@
+<?php
+
+use Illuminate\Database\Migrations\Migration;
+use Illuminate\Database\Schema\Blueprint;
+use Illuminate\Support\Facades\Schema;
+
+return new class extends Migration
+{
+    public function up(): void
+    {
+        Schema::create('elements', function (Blueprint $table) {
+            $table->id();
+            $table->foreignId('set_id')->constrained('sets');
+            $table->string('title');
+            $table->foreignId('parent_element_id')
+                ->nullable()
+                ->constrained('elements');
+        });
+    }
+
+    public function down(): void
+    {
+        Schema::dropIfExists('elements');
+    }
+};
diff --git a/backend/tests/Fakes/FakeElementRepository.php b/backend/tests/Fakes/FakeElementRepository.php
new file mode 100644
index 0000000..65dbcad
--- /dev/null
+++ b/backend/tests/Fakes/FakeElementRepository.php
@@ -0,0 +1,69 @@
+<?php
+
+namespace Tests\Fakes;
+
+use App\Element\CreateElementDto;
+use App\Element\Element;
+use App\Element\ElementRepository;
+use App\Set\Set as DomainSet;
+
+class FakeElementRepository implements ElementRepository
+{
+    /**
+     * @var Element[]
+     */
+    private array $elementsById = [];
+
+    public function create(CreateElementDto $dto): Element
+    {
+        $id = count($this->elementsById) + 1;
+        $element = new Element(
+            id: $id,
+            title: $dto->title,
+            set: $dto->set,
+            parentElement: $dto->parentElement,
+        );
+        $this->elementsById[$id] = $element;
+
+        return $element;
+    }
+
+    public function find(int $id): ?Element
+    {
+        if (! isset($this->elementsById[$id])) {
+            return null;
+        }
+
+        return $this->cloneElement($this->elementsById[$id]);
+    }
+
+    /**
+     * @return Element[]
+     */
+    public function findBySet(DomainSet $set): array
+    {
+        $elements = [];
+        foreach ($this->elementsById as $element) {
+            if ($element->getSet()->getId() === $set->getId()) {
+                $elements[] = $this->cloneElement($element);
+            }
+        }
+
+        return $elements;
+    }
+
+    private function cloneElement(Element $element): Element
+    {
+        $parentElement = $element->getParentElement();
+        if ($parentElement !== null) {
+            $parentElement = $this->cloneElement($parentElement);
+        }
+
+        return new Element(
+            id: $element->getId(),
+            title: $element->getTitle(),
+            set: $element->getSet(),
+            parentElement: $parentElement,
+        );
+    }
+}
diff --git a/backend/tests/Fakes/FakeSetRepository.php b/backend/tests/Fakes/FakeSetRepository.php
new file mode 100644
index 0000000..295e619
--- /dev/null
+++ b/backend/tests/Fakes/FakeSetRepository.php
@@ -0,0 +1,57 @@
+<?php
+
+namespace Tests\Fakes;
+
+use App\Set\CreateSetDto;
+use App\Set\Set as DomainSet;
+use App\Set\SetRepository;
+
+class FakeSetRepository implements SetRepository
+{
+    /**
+     * @var DomainSet[]
+     */
+    private array $setsById = [];
+
+    public function create(CreateSetDto $dto): DomainSet
+    {
+        $id = count($this->setsById) + 1;
+        $set = new DomainSet(
+            id: $id,
+            name: $dto->name,
+        );
+        $this->setsById[$id] = $set;
+
+        return $set;
+    }
+
+    public function find(int $id): ?DomainSet
+    {
+        if (! isset($this->setsById[$id])) {
+            return null;
+        }
+
+        return $this->cloneSet($this->setsById[$id]);
+    }
+
+    /**
+     * @return DomainSet[]
+     */
+    public function getAll(): array
+    {
+        $sets = [];
+        foreach ($this->setsById as $set) {
+            $sets[] = $this->cloneSet($set);
+        }
+
+        return $sets;
+    }
+
+    private function cloneSet(DomainSet $set): DomainSet
+    {
+        return new DomainSet(
+            id: $set->getId(),
+            name: $set->getName(),
+        );
+    }
+}
diff --git a/backend/tests/Unit/Element/ElementTest.php b/backend/tests/Unit/Element/ElementTest.php
new file mode 100644
index 0000000..3e914d9
--- /dev/null
+++ b/backend/tests/Unit/Element/ElementTest.php
@@ -0,0 +1,33 @@
+<?php
+
+namespace Tests\Unit\Element;
+
+use App\Element\Element;
+use App\Set\Set as DomainSet;
+use Tests\TestCase;
+
+class ElementTest extends TestCase
+{
+    public function testCreatesElementWithNullableParent(): void
+    {
+        $set = new DomainSet(1, 'Daily learning');
+        $rootElement = new Element(
+            id: 1,
+            title: 'Root',
+            set: $set,
+            parentElement: null,
+        );
+        $childElement = new Element(
+            id: 2,
+            title: 'Child',
+            set: $set,
+            parentElement: $rootElement,
+        );
+
+        $this->assertSame(2, $childElement->getId());
+        $this->assertSame('Child', $childElement->getTitle());
+        $this->assertSame($set, $childElement->getSet());
+        $this->assertSame($rootElement, $childElement->getParentElement());
+        $this->assertNull($rootElement->getParentElement());
+    }
+}
diff --git a/backend/tests/Unit/Element/UseCases/CreateElementTest.php b/backend/tests/Unit/Element/UseCases/CreateElementTest.php
new file mode 100644
index 0000000..2d01fc6
--- /dev/null
+++ b/backend/tests/Unit/Element/UseCases/CreateElementTest.php
@@ -0,0 +1,183 @@
+<?php
+
+namespace Tests\Unit\Element\UseCases;
+
+use App\Element\Element;
+use App\Element\UseCases\CreateElement\CreateElement;
+use App\Element\UseCases\CreateElement\CreateElementRequest;
+use App\Exceptions\BadRequestException;
+use App\Set\CreateSetDto;
+use DomainException;
+use Tests\Fakes\FakeElementRepository;
+use Tests\Fakes\FakeSetRepository;
+use Tests\TestCase;
+
+class CreateElementTest extends TestCase
+{
+    private FakeSetRepository $setRepo;
+
+    private FakeElementRepository $elementRepo;
+
+    private CreateElement $createElement;
+
+    protected function setUp(): void
+    {
+        $this->setRepo = new FakeSetRepository();
+        $this->elementRepo = new FakeElementRepository();
+        $this->createElement = new CreateElement(
+            $this->elementRepo,
+            $this->setRepo,
+        );
+    }
+
+    public function testCreatesRootElement(): void
+    {
+        $set = $this->setRepo->create(
+            new CreateSetDto('Daily learning')
+        );
+
+        $element = $this->createElement->execute(new CreateElementRequest(
+            setId: $set->getId(),
+            title: 'Root',
+            parentElementId: null,
+        ));
+
+        $this->assertInstanceOf(Element::class, $element);
+        $this->assertSame('Root', $element->getTitle());
+        $this->assertSame($set->getId(), $element->getSet()->getId());
+        $this->assertNull($element->getParentElement());
+    }
+
+    public function testCreatesChildElement(): void
+    {
+        $set = $this->setRepo->create(
+            new CreateSetDto('Daily learning')
+        );
+        $rootElement = $this->createElement->execute(
+            new CreateElementRequest(
+                setId: $set->getId(),
+                title: 'Root',
+                parentElementId: null,
+            )
+        );
+
+        $childElement = $this->createElement->execute(
+            new CreateElementRequest(
+                setId: $set->getId(),
+                title: 'Child',
+                parentElementId: $rootElement->getId(),
+            )
+        );
+
+        $this->assertSame('Child', $childElement->getTitle());
+        $this->assertSame(
+            $rootElement->getId(),
+            $childElement->getParentElement()->getId(),
+        );
+    }
+
+    public function testThrowsWhenSetIdMissing(): void
+    {
+        $this->expectException(BadRequestException::class);
+        $this->expectExceptionMessage('setId is required');
+
+        $this->createElement->execute(new CreateElementRequest(
+            setId: null,
+            title: 'Root',
+            parentElementId: null,
+        ));
+    }
+
+    public function testThrowsWhenTitleMissing(): void
+    {
+        $this->expectException(BadRequestException::class);
+        $this->expectExceptionMessage('title is required');
+
+        $this->createElement->execute(new CreateElementRequest(
+            setId: 1,
+            title: null,
+            parentElementId: null,
+        ));
+    }
+
+    public function testThrowsWhenSetDoesNotExist(): void
+    {
+        $this->expectException(DomainException::class);
+        $this->expectExceptionMessage('Set with id: 99 doesnt exist');
+
+        $this->createElement->execute(new CreateElementRequest(
+            setId: 99,
+            title: 'Root',
+            parentElementId: null,
+        ));
+    }
+
+    public function testThrowsWhenParentElementDoesNotExist(): void
+    {
+        $set = $this->setRepo->create(
+            new CreateSetDto('Daily learning')
+        );
+
+        $this->expectException(DomainException::class);
+        $this->expectExceptionMessage(
+            'Element with id: 99 doesnt exist'
+        );
+
+        $this->createElement->execute(new CreateElementRequest(
+            setId: $set->getId(),
+            title: 'Child',
+            parentElementId: 99,
+        ));
+    }
+
+    public function testThrowsWhenRootElementAlreadyExists(): void
+    {
+        $set = $this->setRepo->create(
+            new CreateSetDto('Daily learning')
+        );
+        $this->createElement->execute(new CreateElementRequest(
+            setId: $set->getId(),
+            title: 'Root',
+            parentElementId: null,
+        ));
+
+        $this->expectException(DomainException::class);
+        $this->expectExceptionMessage(
+            'A root element already exists for this set'
+        );
+
+        $this->createElement->execute(new CreateElementRequest(
+            setId: $set->getId(),
+            title: 'Another root',
+            parentElementId: null,
+        ));
+    }
+
+    public function testThrowsWhenParentBelongsToAnotherSet(): void
+    {
+        $parentSet = $this->setRepo->create(
+            new CreateSetDto('Parent set')
+        );
+        $childSet = $this->setRepo->create(
+            new CreateSetDto('Child set')
+        );
+        $parentElement = $this->createElement->execute(
+            new CreateElementRequest(
+                setId: $parentSet->getId(),
+                title: 'Parent root',
+                parentElementId: null,
+            )
+        );
+
+        $this->expectException(DomainException::class);
+        $this->expectExceptionMessage(
+            'Parent element must belong to the same set'
+        );
+
+        $this->createElement->execute(new CreateElementRequest(
+            setId: $childSet->getId(),
+            title: 'Invalid child',
+            parentElementId: $parentElement->getId(),
+        ));
+    }
+}
diff --git a/backend/tests/Unit/Set/SetTest.php b/backend/tests/Unit/Set/SetTest.php
new file mode 100644
index 0000000..a98ac5f
--- /dev/null
+++ b/backend/tests/Unit/Set/SetTest.php
@@ -0,0 +1,17 @@
+<?php
+
+namespace Tests\Unit\Set;
+
+use App\Set\Set as DomainSet;
+use Tests\TestCase;
+
+class SetTest extends TestCase
+{
+    public function testCreatesSetWithName(): void
+    {
+        $set = new DomainSet(1, 'Daily learning');
+
+        $this->assertSame(1, $set->getId());
+        $this->assertSame('Daily learning', $set->getName());
+    }
+}