Such agreements must be reduced to writing and recording. Under sections 11 and 12 of the Act, the following persons are not in a position to enter into an agreement if an offer that can be accepted immediately is satisfied by a “mirror” acceptance (i.e. full acceptance).  The parties must have the necessary contractual capacity and the contract must not be negligible, indeterminate, impossible or illegal. Contract law is based on the principle expressed in the Latin phrase pacta sunt servanda (generally translated AS ACCORDS TO BE KEPT, but literally “pacts must be respected”).  Violation of contract is recognized by law and remedies may be provided. Legally, a contract is a legally binding agreement between two or more parties which, if it contains the elements of a valid legal agreement, is enforceable by law  or by binding arbitration. A legally enforceable contract is an exchange of specific commitments and remedies in the event of an infringement. These may be compensatory funds for which the defaulting party is required to pay funds that would otherwise have been exchanged in the case of a contract, or an appropriate remedy, such as the special benefit, in which the person who entered into the contract is required to take the specific act that he did not perform. “A legally applicable agreement is a contract.” e., a legally applicable obligation. It is apparent from the above definition that a contract consists essentially of two elements: (1) An agreement and (2) A legal obligation, that is: This statement is made by Anson, which stresses that there will be no contract without agreement, therefore the existence of a contract means the existence of an agreement. Each contract involves an agreement, so each contract is an agreement.
Mr. Anson believes that not all agreements are contract-related, as a contract requires compliance with certain legal conditions, the agreements that meet these conditions are contracts; and agreements that do not meet the conditions are not contractual. That is how it was said that not all agreements are contracts. These agreements are not concluded, which are based on one of the above themes. There is no liability for non-performance of the contract and, therefore, the terms of the contract are not binding on any of the parties. All of these agreements that comply with the conditions mentioned in Section 10 of the Indian Contracts Act are contracts. Section 10 is like sub – Mr. Lal later learned that the car was metallic grey and not pearl grey. In this regard, Mr. Peela is responsible for the misrepresentation and Mr. Lal is free to continue the treaty or not. As long as the goods or services provided are legal, any verbal agreement between two parties may constitute a binding legal contract.
However, the practical restriction is that, as a general rule, only parties to a written agreement have essential evidence (the written contract itself) to prove the actual conditions that were issued at the time the contract was concluded. In everyday life, most contracts can and are concluded orally, for example. B buy a book or a sandwich. Sometimes written contracts are required either by the parties or by law in different legal systems for certain types of agreements, for example. B when buying a house or land. Contract – According to Article 2 (h) of the Indian Contracts Act, “a legally enforceable agreement is a contract.”