Unit - 40 : Meaning and Essentials of a contract Contract means an agreement enforceable by law. There must be lawful proposal by one party and the other party must accept the proposal to enter into a contract.
An agreement may be oral or written. An agreement is defined as ," every promise and every set of promises, forming consideration for each other".
In order to form an agreement, there must be a proposal or an offer by one party and its acceptance by other party . There must be a lawful consideration for both the parties to enter into an agreement .
The parties to an agreement must be legally competent to enter into a contract .