Seven Elements of Contract 1) Offer and acceptance: One party make a proposal to give/do something, if the other party

y accepted the proposal it considered as agreement 2) Consideration Price paid for the promise of the other party Anything (product/services) exchange between the parties Must be real, legal, need not to be adequate 3) Intention between to create legal relations Parties must aware that they are entering into legally binding agreement, where the contract cannot be broken 4) Certainty Terms must be certain or capable being made certain; all terms must be sufficiently clear and complete 5) Capacity Parties must be of an age of majority, sound mind, not barred by law 6) Consent The consent between the parties must be genuine; where it is free will by both parties and they must properly understand that the agreement is enforced by law. 7) Legality The purpose of the agreement made must be for legal transaction, if it is against the law, contract is void. E.g. fraud, forbidden by law, immoral, etc.

Three essence of contract 1) Offer 2) Acceptance 3) Consideration