Contacts and Agreements

Contracts and Agreements :

A contract refers to legally binding agreement that recognizes and governs the rights and duties of the parties to the agreement. It is legally enforceable as it meets the requirements and approval of the law. An agreement typically involves the exchange of goods, services, money, or promises or any of these. In case of breach of contract, the law awards the injured party with access to legal remedies such as damages and cancellation.

Necessary conditions for a contract to be legally valid:

  • All parties must be in agreement (after an offer has been made by one party and accepted by the other).
  • There must be an exchange of something of value -- such as cash, services, or goods (or a promise to exchange such an item) -- for something else of value.

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