Contracts Agreements Definition
A contract is an agreement between two or more parties that creates obligations that are enforceable by law. Contracts can be written, oral, or implied by the actions of the parties. The term ‘agreement’ is often used interchangeably with ‘contract,’ but not all agreements are contracts. For example, a friendship is an agreement between two people, but it is not a contract.
A contract typically contains four elements: offer, acceptance, consideration, and intention to create legal relations. An offer is an expression of willingness to enter into a contract on certain terms made with the intention that it will become binding when accepted. An acceptance is an unqualified assent to the terms of an offer which can be expressed in writing or orally. Consideration is something of value given by one party to another in exchange for an undertaking under a contract. Intention to create legal relations means that the contracting parties must have intended for the contract to be legally enforceable.
