Essential Features of Contracts


Contracts – Essential Features
Some contracts can be made verbally, while others must be in writing to be enforceable. The essentials of a contract must be present wherever there is an agreement; otherwise it will not be enforceable.

The essentials of every contract are:

  • An offer has to be made.
  • The offer has to be accepted.
  • There must be consideration, or exchange of value for the contract.
  • The contract must be for a legal purpose or intention.
  • There has to be an intention to create legal relations.


Example to Consider
Let us take a typical example at a supermarket. You see an item on the shelf, which is marked at a certain price. This is not an offer, it is known as an "invitation to treat".

  • You take the item to the counter and you hand it to the person behind the cash register. At this point you are now "offering" to buy the item for the listed price.

  • The assistant rings up the item on the cash register, or uses the bar code reader. This is now "accepta...

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