- Offer in Contract Law
First element of a contract is an Agreement between two or more parties. To make an agreement, there must be an offer and acceptance between the parties involved. In a contract, it is very significant for the validity that a party would make an offer to another, for an offer to be made, there must be at least two or more parties involved, which will give them the legal capacity for entering into a contract.
- Acceptance in Contract Law
When the party to which the proposal is offered accepts it, then the proposal is said to be accepted. It can be either Express acceptance which is acceptance through words or required act or implied acceptance, which is acceptance through surrounding circumstances or the conduct of the parties. Acceptance must be by offeree and must be absolute & unqualified, communicated to offeror, in prescribed manner given within the time limit. Acceptance cannot precede offer, it must have Intention to fulfill promise and cannot be implied from silence.
- Free Consent in Contract Law
Consent in legal terms means that two or more parties agree upon the same thing in the same sense, and is not caused by coercion, undue influence, fraud, misrepresentation or mistake. It is a necessity of law to have intention to create legal relations from all the involved parties. If there is no intention to create legal relations from any party involved in a contract, the contract itself can be face a lawsuit.
- Consideration in contract law
Consideration in law, is simply an exchange of value between two or more parties that are involved in a contract. Consideration must be legally sufficient, and bargained-for. Which means all the parties that are involved in the contract parties would want to know, ‘What is in it for them?’
- Capacity to contract law
To convert an agreement in to a binding contract, it must consist of parties that are involved to be competent enough to form a contract. According to section 10 every person is competent to contract who is of the age of majority according to the law which he is subject, is of sound mind and is not disqualified from contracting by any law to which he is subject