What is Contract?

What is Contract?

Contract is defined as a legally binding agreement between two or more parties that outlines the terms and conditions governing their mutual rights and obligations. Contracts can be verbal or written, but written contracts are typically preferred as they provide a clearer record of the agreement and are easier to enforce in a court of law. A valid contract typically consists of four essential elements: an offer, acceptance, consideration, and an intention to create legal relations. An offer is a proposal to agree, acceptance is the agreement to the terms of the offer, consideration is something of value exchanged between the parties, and the intention to create legal relations means that the parties must intend for the contract to be legally enforceable....

Contract Based on Formation

Contracts based on formation refer to the various ways in which contracts can come into existence. It pertains to the methods and circumstances under which contractual agreements are established and the nature of those agreements. The different types of contracts based on formation encompass the specific conditions, actions, or elements that must be present for a contract to be legally binding. Understanding these categories is essential in contract law to determine the enforceability and obligations of the parties involved....