contracts! contracts!

at one point in our lives we all need to sign some form of agreements or contracts be it tenancy agreements, scholarship agreements, loan agreements or any other agreements, but do we really no and understand what we agree to. First of all what is a contract?

The word ‘contract’ in legal sense refers to an agreement between two or more parties that is legally binding between them. It is an agreement enforceable by law. (section 2(h) of Contracts Act).

There are certain elements a contract has to have for it to be legally binding, first of all there has to offer and acceptance followed by intention to create legal relations that is to say both parties are serious about creating contractual relations. then there has to be some consideration between the parties ie both parties exchange promises to perform tasks. A contract also has to be certain in all its aspects it has to be understood by both parties. One important element is that both parties have to be in a legal capacity to make a contract that is according to the law they are subject to, eg one has to be old enough, in a sound state of mind. lastly both parties have to be consenting. It is important to always read and understand before we sign on the doted line.