An Agreement Enforceable By Law Is A Contract Essay

1925 Words Dec 23rd, 2016 8 Pages
According to Section 2(h) , “an agreement enforceable by law is a contract”. In other words, a contract is a legally enforceable agreement or legally binding promises between two or more parties to do or not to do something.

According to Section 2(e) , “every promise and every set of promises, forming the consideration for each other, is an agreement”. Thus, an agreement means that every promise that contains consideration from two or more parties which may not enforceable by the law.

According to Section 10(1) , “All agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void.”

It is clear that if an agreement is not capable of creating an obligation enforceable by law it is not a contract. Therefore, an agreement has a broader term than a contract and for a contract to form there must be an agreement.

For an agreement to be able to enforce by law, the agreement must consist of legal and valid elements of contract. It must have offer and acceptance from parties who have the capacity to form a contract and the acceptance must be supported by consideration. The parties of the contract or agreement must have the intention to create legal relations with each other and the act must have certainty.

OFFER

Section 2(a) define proposal (offer) to mean ‘when one person signifies to another his willingness to do or abstain from doing…
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