Essential elements of Contracts.

 There are many agreements company do for the performing their function by effective, efficient way to achieve their goal. All agreement that are enforceable by law is called contrat. 

In other words we can say that the agreements that fulfills  predefine rules regulations, law terms and conditions and brings positive result .This type of agreement is called contract. 

Elements of contract:

There are many elements of contract. These elements are as below-

1. Offer and acceptance- It is the first element of contract. There are two parties in contract.First party gives offer to second party and second party accepts this offer.If first party gives offer and second party doesn't accept it contract is not possible and if second party accept it contract is possible. 

2. To create a legal relationship- It is the second element of contract. The exchange of offer and acceptance between first person and second person should be positive and create a legal relationship. 

3. Capacity to fulfil- The person who gives offer to other person they have capacity to fulfill it.If they have no capacity and they give offer to other person and make a contract. If contract is not possible legal action may be taken against him. 

4. Free consent- It is also an important element of contract. Before signing on contract paper both parties talk, debate, discuss on every aspect of the contract. After satisfying all aspects they accept agreement and sign then contract is possible. 

5. Lawful object- it is also an important elements of  contract. The goal and purpose of every contract should be positive, legal and progressive. If the object of contract is not legal then legal action can be taken against both parties. 

6. Possibility of performance- It is also an important element of contract. Contract always belongs to future so the things that is possible that should involve in contract. If impossible things is made by contract and not possible legal action may be taken. 

7. Legal formalities- There are a number of formalities essential in contract. These formalities are written form, registration, stamps paper evidence and so on. All formalities must be done to make a valid contract. 

8. Lawful consideration- There are many issues discuss in the process of making contract. All the legal issues points must be  considered in the process of making contract. 

9. Positive intention- The intention should be clear of all persons who participate in contract. If intention is clear but output is negative then less legal action may be taken whereas if intention is bad and output is right, it is not understand valid contract. 

10. Certainty -The things that involves in the process of contract must be certain. The things that is uncertain by law is not involve in the process of contract. 

So we can say that contract is an essential function of business and plays an important role for the development of organization.