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  What is an Offer? In order to create a valid contract, there must be an offer. Where one party makes an offer and the another party must accept it, and the consideration must be exchanged. Therefore, the proposal or offer must be accepted to enter into an agreement. One who makes an offer is called as "offerer/promisor" and who accepts or receives it is called as "offeree/promisee."  According to Section 2(a) of the Indian Contract Act, 1872      (a) When one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal. According to Section 2(c) of the Indian Contract Act, 1872      (c) The person making the proposal is called the “promisor”, and the person accepting the proposal is called the “promisee.” ESSENTIAL OF VALID OFFER: There must be two parties Must be communicated Intention to create Legal Relatio...

 DIFFERENCE BETWEEN CONTRACT AND AGREEMENT Aspect Contract Agreement Definition A legally binding agreement enforceable by law. A mutual understanding or arrangement between two or more parties. Essential Elements Offer, acceptance, consideration, intention to create legal relations, and capacity of the parties. Offer and acceptance. Consideration There must be consideration while forming the contract. Agreements can be formed without consideration. Defined under  Section 2 (h) of the Indian Contract Act, 1872. Section 2 (e) of the Indian Contract Act, 1872. Enforceability Legally enforceable by the parties involved. May or may not be legally enforceable. Legal Obligations Creates legal obligations between the parties. May or may not create legal obligations, depending on the intention. Nature of Parties Parties can be individuals, compa...

 Initially, there are two components which form the basis of a contract. They are, An Agreement Its enforceability by law Agreement: An agreement consists of proposal or an offer by one party and its acceptance by another party. It also implies that the parties have a common intention about the subject-matter of the agreement. Two parties must be thinking the same thing in the same sense. Thus agreement is the outcome of the two consenting minds, i.e.,"consensus ad idem". According to Section 2(e) of the Indian Contract Act, 1872 Agreement is defined as "every promise or every set of promises forming the consideration for each other". According to Section 2(b) of the Indian Contract Act, 1872 When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal, when accepted, becomes a promise. Enforceability of Agreement by law:  Agreements based on its enforceability by law are of two types- Unenforceable agree...

WHAT IS A CONTRACT? A contract is an agreement between parties that creates mutual obligations that are enforceable by law. It is a binding agreement between two or more parties.It can also be described as "a set of enforceable promises, either written or oral." For example,  1) When we buy a product at a store, we are entering into an agreement to purchase whatever it is we are purchasing. 2) When we get a new job, we sign an employment agreement to start work. According to Section 2(h) of the Indian Contract Act, 1872 Contract is defined as an agreement enforceable by law. From this definition, we find that a contract essentially consists of two elements i.e. an agreement and legal obligation i.e. a duty enforceable by law. According to Pollock, Every agreement and promise enforceable by law is a contract. According to Salmond, A contract is an agreement creating and defining obligation between two or more persons by which rights are acquired by one or more to act or forbe...