All such agreements that meet the requirements set out in Section 10 of the Indian Contracts Act are contracts. Section 10 is as below – The third essential element of a valid contract is the existence of “consideration”. The consideration was defined as the price paid by one party for the promise of the other party. An agreement is only legally enforceable if each of the parties gives something and receives something that is qualified as consideration. What is given or received is the price of the promise and, subject to certain exceptions, is called “consideration”; Unpaid engagements are not legally enforceable. As stated above, to become a contract, an agreement must be a legal obligation. If an agreement is unenforceable by law. It is not a contract. “Agreements whose importance is not safe or secure are irrelevant.” To establish a valid contract, the terms of the agreement must not be vague or uncertain. The importance of the agreement must be established, otherwise it cannot be implemented. On the basis of the above definitions, we find that a contract essentially consists of two elements: – a mutual understanding between two or more legally competent persons or entities that they will subsequently conclude a contract, while the precise terms of the contract have not yet been established; without obligation. “An agreement, an impossible act in itself, is unaffordable.” If the act itself is physically or legally impossible, the agreement cannot be enforced by law.
illustration; Rasheed agrees with Adama to discover treasures through magic. The agreement is not applicable. However, the treaty is a form of economic order that is commonplace throughout the world, and in jurisdictions applying civil law (derived from Roman legal principles), Islamic law, socialist legal systems, and customary or local law, different rules apply. An agreement is a form of referral between different parties, which can be written and oral and which is on the honour of the parties for their execution, instead of being enforceable in one way or another. In the example above, there is no legal obligation, so it can be said that it is only a social agreement, but not a contract. All contracts are agreements, as there must be mutual understanding between two parties for a contract to be concluded. All parties should accept and comply with the terms of an offer. Where both parties to an agreement make a factual error essential to the agreement [section 20]; (b) Consensus-ad-idem (agreement on the same case).
Both contracting parties must agree on the subject matter of the contract in the same way and at the same time. An agreement between spouses made during a divorce on custody, child and spousal support, division of property and other matters. These agreements are usually included in the parties` divorce decision. See the separation agreement. An offer was also made by Dr. Date-Bah JSC briefly defines as it was then called SCGLR 117 at 125 in nthc Ltd v Antwi : “In principle, a tender is an indication in word or conduct of a supplier that he or she is willing to be bound by a contract as reflected in the tender where the tenderer has notified the tenderer of its acceptance of these conditions. . . .