In the Contracts Act, the word “reciprocal” refers to “the other or the gift and the taking”. Therefore, the “mutual promise” is the promise that leads the parties to the agreement to a counterparty or part of it. The term “agreement” is broader than that of “contract”, as in “Any contract is an agreement, but conversely, it is not possible”. This is due to the fact that all contracts contain the elements of the agreement, i.e. offer and acceptance, but not all agreements contain the main element that constitutes a contract, i.e. legal third-party effectiveness. So we can say that not every agreement is a contract. Definition: In legal language, the term “agreement” is used to refer to a promise/obligation or a number of reciprocal commitments that constitute consideration for the contracting parties. The party to whom the offer or proposal is submitted accepts, in this regard, against reciprocal consideration, the offer is deemed to have been accepted, which gives rise to a promise. 3) Completeness: on the basis of certainty, a contract should answer all questions relating to the transaction and represent itself (i.e. there is no need for clarification).
Without speaking too much legally, the “four corners” rule (rule of parol proof) generally only allows what appears in the contract as proof of the agreement concluded between the parties. Therefore, in the event of a dispute, the court will only take into account what is in the contract, and not what the parties have understood or agreed orally outside the written contract. Consideration: this is the value that one party gives to another party in exchange for the service or product. It can be money or some other type of performance. Without consideration, people usually don`t enter into a simple contract. . Contractual capacity: both parties should be able to give their consent, otherwise the contract is inconclusive. . . .