What is a Contract

The word Contract was derived from a Latin word Contractum. The word contractum means drawn together. The following are definition with regard to Contract.

Definition of Contract

Agreement creating and defining obligations between the parties is called Contract. - Salmond

Any agreement or promise enforceable at law is called Contract. - Pollock

Agreement upon consideration basis to do or not to do a particular thing is called contract. - Black Stone

Agreement enforceable by law is called contract. - Indian Contract Act, 1872 Sec.2 (h)

Thus Contract is defined as agreement. To form an agreement, two elements are needed, namely;

• Offer and
• Acceptance.

What is Offer and What is Acceptance in contract law

The status of offer is equal to that of question and the status of acceptance is equal to that of answer. The person who is making the offer is called Offerer or Promissor or Proposer. The person who is giving acceptance is called Offeree or Promise or Acceptor.

What are the types of agreements

Agreements can be classified into two groups, namely Social Agreements and Legal Agreements.

What is Social agreement

The agreement which is not enforceable by law is called Social agreement. In this agreement, only one directional consideration will be seen.

What is Legal agreement

The agreement which is enforceable by law is called legal agreement. In case on legal agreement, two directional consideration will be seen.

Also See:

Features of a Valid Contract
Types of Contract
Offer and Essentials of Offer
Acceptance and Features of Acceptance
Breach of Contract