A contract is an agreement between two or more parties to perform a service, provide a product or commit to an act, and is enforceable by law. There are several types of contracts, and each have specific terms and conditions. All contracts, whether verbal or written, must include specific components that will make them legally enforceable in a court of law. If any of the components are missing, the courts will consider the contract unenforceable. To be enforceable, a contract must be legally valid, and it must consist of an offer , acceptance , and consideration. When a salesperson asks you to sign on the dotted line, it is important to understand the contents of the agreement you are signing. After all, the agreement you are entering into is a contract! In other words, a contract is enforceable when both parties agree to something, back the promise up with money or something of value, both are in sound mind and intend to carry out their promise and what they promise to do is within the law. Most commonly, a contract is written and signed by the parties. However, there are several other types of contracts that are considered enforceable. There are even some that are not considered enforceable and serve only as a way for a court to determine the obligation on the part of either party. Offer and acceptance- A contract is formed when an offer by one party is accepted by the other party. An offer must be distinguished from mere willingness to deal or negotiate. For example, X offers to make and sell to Y calendars featuring Australian paintings. Before any agreement is reached on size, quality, style or price, Y decides not to continue. At this stage, there is no legally binding contract between X and Y because there is no definite offer for Y to accept until the essential terms of the bargain have been decided. An offer need not be made to a specific person. It may be made to a person, a class of people, or to the whole world. An offer is a definite promise
