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ESSENTIALS OF CONTRACT

1. There must be an agreement .This involvestwo parties, one party making the offer andthe other party accepting it.

2. The parties must intend to create legalrelationship.3. The parties must be capable of entering

into an agreement as age andunderstanding.

4. The agreement must be supported byconsideration on both sides.

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5 .The consent of the parties must be freeand genuine.

6 .The object of the agreement must belawful.

7 .The terms of agreement must be certain

and capable of performance.8 .The agreement must not have been

expressly declared as void.

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CLASSIFICATION OF CONTRACTS.VOID AGREEMENT

An agreement not enforceable by law..VOID CONTRACT

A contract which ceases to be enforceable bylaw.

VOIDABLE CONTRACT A contract which is enforceable by law at the

option of one party thereto, but not at theoption of the other.

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Illegal agreement An agreement which involves the

transgression of rule of basic public policyand criminal in nature or immoral. It is notonlys void as between the immediate

parties but it also taints the collateraltransactions with illegality

Express contract A contract in which the terms are stated in

words (written or spoken ) by the parties .

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Implied contract A contract which is inferred from the

circumstances of the case or from the conduct

of the parties. Quasi-contract

An obligation created by law, regardless of agreement.

Executed contract A contract which is wholly performed by the

parties.

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EXECUTORY CONTRACT Acontract in which the promises of both

the parties have yet to be performed. PARTLY EXECUTORY, PARTLY

EXECUTED CONTRACTS

A contract in which one party hasperformed his obligation but the other party has yet to perform his obligation.

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UNILATERAL CONTRACT A contract in which only one party has yet

to perform his obligation. BILATERAL CONTRACT

A contract in which both the parties have

yet to perform their obligations