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. The gist of all contracts is an agreement, for example all contracts must be built upon an agreement although not all agreements are automatically contracts.

Some agreements are not contracts because they lack certain essential elements. There have few necessary elements of contract: offer & acceptance, intention to create legal relations, consideration, certainty, legality, legal capacity and free consent.
Lecturer was discuss "proposal (offer) and acceptance" with us on last week. A proposal is made when one person signifies to another his willingness to do anything with a view to obtaining the other's assent. Acceptance is made when the other person signifies his assent to such a proposal/offer. And lecturer ask us to refer the case of Carlill vs. The Carbolic Smoke Ball Co. Ltd.