A contract is an agreement between 2 or more parties which creates legally enforceable rights and obligations between them. The necessary requirements for a contract are:
intention by both parties to enter into a legal relationship
the offer by one party has been totally accepted by the other party
there is valuable consideration or execution under seal
both parties have legal capacity
genuine consent and agreement by the parties
the contract is a legal contract.
A contract can be a:
A social agreement between husband and wife is not a contract as there is no intention by the parties to enter into a legally binding contract such as an agreement to pay house keeping money. Land transactions should be in writing.
offer and acceptance
subject to contract
subject to finance