Contracts and their Validity

What is a Contract?
A contract is generally an agreement between 2 or more parties to exchange something for something else or to do something. Most contracts consist of an offer to buy a product or a service from one party, and the acceptance of that offer by another party.

To be a contract, there must be a consideration for value (an undertaking to do or to pay something in exchange for the product). The consideration doesn’t have to be money, as long as it is something of value.

Definition of a Contract
The definition of a contract is that it is an arrangement, which contains the following elements.

1. An agreement between at least 2 persons constituted by an offer and acceptance.
2. An intention to create legal relations. That is, the agreement should be enforceable in law.
3. The agreement requires the party making the offer to do or abstain from doing some action. The doing or abstaining from doing some act is termed consideration.

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