The law of contracts in India is contained in the Indian

Contract Act, 1872, which lays down the general principles relating
to formation, performance and enforceability of contracts and the
rules relating to certain special types of contracts such as indemnity,
guarantee, bailment, pledge and agency. The Act is, however, not a
complete and exhaustive law; some of the special contracts such as
those relating to partnership, sale of goods, negotiable instruments,
insurance, etc. are dealt with by separate legislations. However, the
general principles of contract law are the basis for such special
contracts too.
Essential elements of a Contract: From the foregoing
discussion, the essential elements of a contract may be enumerated
as under:
1. Minimum two parties � At least two parties are necessary to form
a contract because one person cannot enter into a contract with
himself. To form a contract, one party has to make an offer ad
the other must accept it. The person who makes the �proposal� or
�offer� is called the �promisor� or �offeror�, the person to whom the
offer is made is called the �offeree� and the person who accepts the
offer is called the �acceptor�.
2. Offer and acceptance � There must be an �offer� and an
�acceptance� to the offer, resulting into an agreement. Both �offer�
and �acceptance� should be lawful.
3. Intention to create legal obligation � The parties must intend to
create legal obligation. In commercial agreements. an intention to
create legal relations is presumed, unless the parties have
expressly agreed to otherwise.