Contract Law: An agreement enforceable by law is a contract. A contract may be between two or more persons or parties. In contract definition there or two main elements.
- What is an agreement…?
- How does the agreement become enforceable…?
Important Elements of the contract
Important elements of the contract are as follows.
- Proposal/Offer
- Acceptance
- Promise
- Consideration
- Agreement
Proposal/Offer
A proposal is an offer to a person to do an act for a person. A proposal may be written or spoken.
Acceptance
When a person accepts a proposal, it is called acceptance. For example, A gives a proposal to B to purchase his car for $10000. B accepts the proposal of A and agrees to purchase his car for $10000.
Promise
Acceptance of an offer is a promise. For example, a proposal sent by A and accepted by B is now called a promise. Proposal + Acceptance = Promise. The person who sends the proposal is called the promiser, and the person who accepts the proposal is called the promisee.