What is an agreement? | Essentials elements for agreement.

What is an agreement? |Essential elements of agreement (Give its characteristics)

Meaning of Agreement

Meaning of Agreement.

According to section 2(e): "Every promise and every set of promises forming the consideration for each other is an agreement."

In an agreement there is a promise from both sides.
For example, A promises to deliver his Cellphone to B and in return B promises to pay a sum of Rs. 2,0000 to A, there is said to be an agreement between A and B.

A promise is a result of an offer (proposal) by one person and its acceptance by the other.
For example, when A makes a proposal to sell his Cellphone to B for Rs. 2,0000 and B accepts his proposal, there results a promise between two persons.
Section 2(b) of the Act defines promise as under:

"When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal, when accepted, becomes a promise." Thus, when there is a proposal from one side and the acceptance of that proposal by the other side, it results in a promise. This promise from the two parties to one another is known as an agreement. It has been noted above that an agreement enforceable by law is a contract. All such agreements which satisfy the conditions mentioned in section 10 of the Act are contracts. Section 10 is as under:

"All agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object and are not hereby expressly declared to be void."

The essentials needed for a valid contract, therefore, are as:

1. An agreement between the two parties. An agreement is the result of a proposal or an offer by one party followed by its acceptance by the other.

2. Agreement should be between the parties who are competent to contract,

3. There should be a lawful consideration and lawful object in respect of that agreement,

4. There should be free consent of the parties when they enter into the agreement. 

5. The agreement must not be one, which has been expressly declared to be void.