Thus, in case of any dispute, vis-à-vis terms of agreement, the victim can seek justice through law. To distinguish between the contractual terms: ‘Offer’ and ‘Interest to treat’, it is important to understand the legal aspects of contract.
A legal Contract can broadly be defined as a legal agreement, with rights and obligations between two or more parties that are enforceable by law (McKendrick, 2000). A contract must have three vital elements to make it legally binding; intention to create legal relationship; agreement; and considerations and are discussed as below:
‘Intention to create legal relationship’ and considerations’ are integral part of legal contracts. The social and domestic relationship bound by social duty are not presumed to be bound by law and therefore, have no need for legal contract to form relationship. Contrarily, in the area of business, the nature of interaction between two or more parties is more formal and therefore requires terms of agreements to promote business relationship. It is for these reasons that the courts and law assumes that business contracts are intended to form formal business relationship.
The considerations of a valid contract refer to the price paid for the fulfillment of promises between the parties. This element of the contract helps the parties to get compensation in case of breach of contract.
This is the most vital part of contract and comprises of methodologies of entering into legal business partnership. When the various terms of forming a business relationship is agreed upon by the concerned parties, formal contract is created that is called agreement between the parties. The agreement is characterized by an ‘offer’ made by one party which only becomes an agreement when the ‘other party’ accepts it. The ‘offer’, therefore, becomes critical part of agreement which