A contract is simple legal parlance is a legally binding agreement made between two or more parties. For an agreement to be enforceable at law it must be characterized by
- Consensus –Comprises offer and acceptance. Is the foundation of any contract.
- Capacity –This is the ability to enter into a contract.
- Intention –The parties must have intended to bind themselves in law
- Consideration –The act or promise offered by one party as the price for the other’s promise.
- Legality –The contract must not be illegal or unlawful
- Formalities if any –e.g. writing, signature consent, written evidence.