DEFINITION OF CONTRACT:When a PROPOSAL has communicated which is accepted by the other party that becomes PROMISE, which having

a CONSIDERATION for both the parties leading towards an AGREEMENT. Finally if the agreement containing legal rights and obligations for the parties and can be enforceable by law, that is to be called as CONTRACT. OR An agreement which is enforceable by law is contract.

Elements of Contract:
There are two elements of contract: * Agreement * Enforceability

AGREEMENT: !very "romise or set of reciprocal promise forming the consideration for each other is an agreement. ENFORCEA LIT!: An agreement # legal obligations $ leads to !nforceability.

TYPES OF AGREEMENT: (AGREEMENT = OFFER ACCEPTANCE!

There are two types of agreements: * SOCIAL AGREEMENT: %ocials agreements cannot be enforced by law. As there is no intention to create legal rights or bindings. * LEGAL AGREEMENT: Those agreements which having an intention to create legal rights and obligations.

ESSENTIA"S OF A #A"ID CONTRACT:

* OFFER AND ACCEPTANCE: %tarting point of a contract& 'awful Offer and 'awful acceptance. * LEGAL O LIGATIONS: "arties must create legal obligations. Fails to fulfill, liable for breach

of contract. * LA"F#L CONSIDERATION: %omething given or obtained some benefit to the other party. * CAPACIT! OF CONTRACT: "arties competent to form a contract. Age of ma(ority, sound mind, not dis)ualified by 'aw. * FREE CONSENT: *utually agreed without fear, threat or pressure act in a contract, which cause in(ury to any person. * LA"F#L O $ECT: +ot to be illegal or immortal, ,ause in(ury to party, fraud. - "RITING AND REGISTERATION% Written is easy to prove in the court, must be signed, registered and witnesses provided. * CERTAINIT! OF TERMS% ,lear complete and certain, otherwise becomes void. * POSSI LIT! OF PERFORMANCE% 'egally and physically impossible to be performed, the agreement cannot be enforced by law. *NOT E&PRESSL! DECLARED 'OID% !.pressly declared void by the law. !.g.: Restraint to trade.

$INDS OF CONTRACTS (Accor%&n' to Enforcea(&l&t)!

'ali( Contract% !nforceable by parties with free consent. 'oi( Contract% +ot enforceable by law. !ither void or become subse)uently void. 'oi(able Contract% !nforceable by one party only. made on gun point or by threats. #n)enforceable Contract% ,annot be enforced due to some un avoidable reason. e.g.: technical defects, absence of writing, registration or stamp.

$INDS OF CONTRACTS (Accor%&n' to Format&on!

E*+re,, Contract% ,learly e.pressed in written. Im+lie( Contract: A contract by way of conduct of a party. -.a,i Contract% +ot legal but can be legally imposed. Remuneration which are re)uired to be paid for services rendered/

$INDS OF CONTRACTS (Accor%&n' to Performance!

E*ec+te% Contract: "erformed or /mplemented, E*ec+ter Contract: This is re)uired to be performed at a later stage.

$INDS OF CONTRACTS (Accor%&n' to Part&es!

#nilateral Contract% "erformed by one side. ilateral Contract% Re)uired to be performed by both the side.

CONC"-SION:- ,ontract an agreement, enforceable by the law. - 'egal Agreements are essential for 0usiness1trade transactions. - Fulfilling the essentials of a valid contract is mandatory for the purpose of its enforceablity.