What is a contract?

A contract is an agreement between two or more persons which will be enforced by a court of law. A contract can be in writing, oral or partly written and partly oral. There are four elements in contract must be fulfilled. There are: 1. offer; 2. acceptance; 3. intention; 4. consideration. Offer is willingness of one person to another to enter into a contract with him/her on certain terms. In other words, when a reasonable person is willing to be bound in a court of law, offer exists. To make it clear about the offer means, the concept of offer is used to distinguish between: - an offer and merely indicating a possible course of future conduct; - an offer and an invitation to treat; - an offer and conduct that is merely part of the negotiations. Second element is what is an acceptance? Acceptance is only valid when it has been properly communicated. One of the elements of a valid offer and acceptance is certainty. Next element is intention. Intention means the parties to the agreements must have intended their agreement to be legally enforceable. Lastly, consideration is a promise to do something or not to do something.