What is an Agreement?

An agreement is a promise or commitment given by one party to another party. It includes an offer that is made by one person and accepted by the other person. In simple words, an agreement happens when an offer is made by one person and accepted by another person.  It consists of two or more parties. It becomes an agreement only if the essential ingredients are fulfilled. There must be a consideration.

Essentials of Forming an Agreement:

• • Parties – There must be two or more parties to form an agreement.

• • Offer or proposal – The proposal must be made by one party to the other.

• • The person(s) to whom the proposal has been made must clearly understand all the aspects and terms of the proposal

• • Acceptance – The offeree or the person to whom the offer has been made, must accept the proposal and give his assent to all its terms

• • Promise – When the proposal is accepted it becomes an accepted proposal or a promise. A proposal is not synonymous to a promise but becomes one only after its acceptance

• • Consideration – An agreement is accepted with a consideration which is the price for the promise made to be paid as a consideration.

Types of Agreement

Written agreement – Agreements are done by writing in a special layout called written agreement. It contains certain terms and conditions which are accepted by the parties with consideration………… For More Take Subscription 

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An offer and invitation to offer are two different terms, which must not be confused with one another. An offer is a proposal while an invitation to offer (treat) is inviting someone to make a proposal. In an offer, there is an intention to enter into a contract, of the party, making it and thus it is certain. On the other hand, an invitation to offer is an act which leads to the offer, which is made with an aim of inducing or negotiating the terms…..

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