Contract (or agreement)
An agreement in the context of contract law, refers to a meeting of the minds of two or more parties and at which point a contract is formed. A contract becomes the legally enforceable agreement between the two or more parties with enforceable obligations and promises. Contracts can be oral, written or partly oral and partly written. In order for a contract to be legally enforceable a contract must contain the following essential elements:
- An offer is made;
- The offer is accepted;
- There is an intention between the parties to create binding legal relations;
- The parties each advance consideration;
- The parties have legal capacity to contract; and;
- The agreement is expressed with the required level of certainty and completeness.
The law of contract underpins all commercial transactions and as a result, is the conceptual framework underlying the vast majority of civil disputes in the courts.