ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -It must contain: An offer made by the promisor. An acceptance of the offer by the promisee. Consideration in the form of money or a promise to do or not do something.

Detailed explanation-2: -Consideration-Something of value was promised in exchange for the specified action or nonaction. This can take the form of a significant expenditure of money or effort, a promise to perform some service, an agreement not to do something, or reliance on the promise.

Detailed explanation-3: -A valid contract should have all essential elements including offer, its communication, meeting of minds, acceptance, communication of acceptance, consideration, capacity, legality.

Detailed explanation-4: -The basic elements required for the agreement to be a legally enforceable contract are: mutual assent, expressed by a valid offer and acceptance; adequate consideration; capacity; and legality. In some states, elements of consideration can be satisfied by a valid substitute.

Detailed explanation-5: -For a contract to be valid and recognized by the common law, it must include certain elements-offer, acceptance, consideration, intention to create legal relations, authority and capacity, and certainty. Without these elements, a contract is not legally binding and may not be enforced by the courts.