Intro law of contract Part1

The meaning of "contract" in business law refers to an agreement between two or more parties that is legally binding between them. It is also enforceable in a court of law under section 2(h) of Contract Acts. Of course, the gist of all contracts is an agreement, for instance, all contracts must be build upon an agreement although not all agreements are automatically contracts.

The are 7 essential elements of contact, which are free consent, offer and acceptance, legal capacity, legality, certainty, consideration and intention to create legal relations.

1.) Offer, meaning that 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 the act or abstinence under section 2 (a) of the contracts act.

2.) Acceptance, meaning that when a 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, under section 2 (b) of the contracts act.

3.) Consideration, meaning that when at the desire of the promiser the promisee or any other person has done or abstained from doing, or does or abstain from doing, or promises to do or to abstain from doing something, such act or promise called a consideration for the promise, under section 2 (d) contact act 1950.

4.) Certainty, meaning that an agreements is not certain or capable of being made certain are void, under section 30, contacts act.

5.) Free consent, refers to every contract there must be a free consent. The free consents is said to be missing due to existence of 5 factors, which is fraud, coercion,misrepresentation, undue influence and mistake.