NATURE OF CONTRACT

NATURE OF CONTRACT

A contract is an agreement which is legally binding on the parties to it and which, if broken, may be enforced by action in court against the defaulting party.

The requirements for the formulation of a legally binding contract are as follows:

  • Offer
  • Acceptance
  • Consideration
  • Intention to create legal relationship           
  • Parties must be persons of full contractual capacities