In the simple words contract can be explained as an oral or written agreement enforceable by law. Without an agreement no contract can be made and for a contract there should be an offer and acceptance in the contract. The offer when accepted with the free consent becomes a valid contract.
Elements of contract:
- Free consent
- Lawful Consideration
- Capacity of the parties
An agreement is said to be valid contract when it consists of all the above mentioned elements. A valid contract is a contract which is made between two parties which are of sound mind and acquire the age of majority according to the law.
Example: A promises to sell his car for Rs. 70,000 and B agrees to buy the car at the mentioned price (Here A and B should be of more 18 years and of sound mind).