All elements agreements are not contract,only those agreements which are enforceable by the law are

contract .A contract is an agreemnet which is enforceable by the law the court,determined and guided
by the agreemnet of parties,concrened.

An agreement to be enforcebale by law must posess the following elements,which are valid contract.The
essenstial elements of the valid contract are listed below :

1. Offer and Acceptance

2. Consideration

3. Legal Relationship

4. Competent parties

5. Free consent

6. Certainity

7. Not declared to be void

8. Lawful Objective

9. Legal Formalities

10. Possibilty to perform

1. Offer and Acceptance

An offer is an open call to anyone wishing to accept the promise of the offeror and generally, is used for
products and services. Acceptance occurs when an offeree agrees to be mutually bound to the terms of
the contract by giving consideration, or something of value like money, to seal the deal.

2. Consideration

Consideration is the benefit that each party receives, or expects to receive, when entering into a
contract. Consideration is often monetary, but it can be a promise to perform a specific act, or a promise
to refrain from doing something. In order for a contract or agreement to be legally binding, every party
to the contract must receive some type of consideration. In other words, a contract is a two-way street,
so each party must receive something of value from the other party or parties. Illegal or immoral acts are
not legally considered to serve as consideration.

3. Legal Relationship

In its simplest form, intention to create legal relations means that the parties must intend to enter into a
legally binding arrangement in which the rights and obligations of the agreement are enforceable. As
simple as this seems, the question as to whether the parties to a negotiation did intent to create legal
relations is highly fact sensitive. It is relatively certain that representatives of a business, meeting in a
formal commercial scenario to negotiate a contract do intend to create legal relations.

4. Competent Parties

The law generally presumes that everyone has the capacity to contract. But if a party does lack capacity,
then the contract is usually voidable and the party without capacity may avoid the contract.Parties to an
agreement must have contractual capacity before the agreement will be binding on both parties.
Contractual capacity is the ability to understand that a contract is being made and to understand its
general nature. The fact that a person does not fully understand the full meaning and all ramifications of
a contract does not mean that the person lacks contractual capacity.

5. Free consent

Free consent refers to an agreement when both parties knowingly and willingly enter into a contract of
their own will. This includes agreeing to all of its terms and conditions and a mutual level of
understanding of the subject matter in the contract.For a contract to be enforceable and sound, this
consensus must have been gained free of any forms of coercion, cheating, undue influence, fraud or
pressure. In addition, the contract must be free of mistakes or misrepresentation by both parties. If
consent is gained by any of these means the contract is considered void and unenforceable by law.

6. Certainity

Certainty can be defined as being free from any doubt, a state of being absolutely certain, as in the
certainty of death. In terms of contract law, a contract is certain when the provisions are properly
described and explained.Certainty in law of contract is a principle in national and international law which
holds that parties to a contract should always look to ensure that a contract is certain. If a contract is
incomplete or uncertain, then it may be found to be unenforceable. An agreement doesn't create a
binding contract.

7. Not declared to be void

Void agreement is an agreement which is not enforceable by law. It implies the rights and liabilities of
which cannot be enforced in the court. It has no legal significance from the beginning. Eg. A agrees to
supply liquor to B ,subsequently prohibition Act comes into force.Thus all agreements to supply liquor
become void, thereafter. Hence B cannot enforce the agreement which is made before the Act comes
into force.The agreement has become void from the date of the prohibition order come into effect.

8. Lawful Objective

The element of a contract is that it must be made for a lawful objective. Courts will not enforce contracts
that are illegal or violate public policy. Such contracts are considered void. For example, a gambling
contract would be illegal in many states.If the illegal agreement has not been performed, neither party
has the right to sue the other for damages or to require performance of the agreement. If the
agreement has been performed, neither party can sue the other for damages or to have the agreement
set aside.

9. Legal Formalities

Formality means a small point of practice that, though apparently insignificant, must generally be
observed to achieve a particular legal result.Formality also means the conditions which must be
observed in making contracts, and the words which the law gives to be used in order to render them
valid.

10. Possibility to Perform

Possibility to perform means the contract must be possible to complete because legally binding contracts
cannot be undertaken to perform an impossible act. This is not to say that an entrepeneur on hiring a
contractor is going to be confronted at year’s end by the contractor stating that their sub-contractors had
difficulties and there was too much rain in July. No, that does not constitute a barrier to possibility to
perform in regards to the contract – more likely than not, such a situation would simply be
mismanagement or bad luck. Neither of which the court is open to addressing as a get out of jail free
card for businesseslity to Perform