Formation of Contracts

A contract is a legally binding agreement between two or more parties.
In the context of business, a contract may be used to set out the terms and conditions of a business transaction, protect intellectual property, or serve as an employment agreement, among other uses.
Contracts can offer protection and redress should any party fail to meet their obligations.

Offer: This is a clear and definite promise to do something, such as sell a product or provide a service. It must be communicated to the other party.
Acceptance: The party to whom the offer is made agrees to the terms proposed. This must be an unequivocal acceptance of the offer.
Consideration: Something of value that is promised in return for a service or product. This might be money, a service, or a promise not to do something.
Intention to Create Legal Relations: Both parties must intend that the agreement is legally binding. In commercial agreements, this is usually assumed unless specifically stated otherwise.

Sales Contracts: These refer to the sale of goods or services and include terms regarding delivery, payment, and other conditions.
Employment Contracts: These outline the terms and conditions of employment between an employer and an employee.
Partnership Agreements: These pertain to business arrangements between two or more individuals who want to run a business together.

A contract can become unenforceable due to various reasons such as illegality, lack of contractual capacity, or if terms are found to be unfair or unreasonable.
If a party fails to meet their contractual obligations, they could be held liable for breach of contract. This can result in a variety of legal consequences depending on the terms of the contract and the nature of the breach.