Agreement is a term used to describe a condition where two or more parties come to a mutual understanding about a particular issue. In legal terms, agreement is defined as a contract between two or more parties that establishes certain rights and obligations. In everyday life, we often use the term agreement to refer to an understanding or consensus between people or groups.
Characteristics of Agreement
1. Mutual Understanding: Agreement is not possible unless there is a mutual understanding between the parties involved. All parties must agree on the terms and conditions of the agreement for it to be effective.
2. Intention to Create Legal Relations: For an agreement to be legally binding, all parties must have the intention to create legal relations. This means that the parties involved must intend to be legally bound by the terms of the agreement.
3. Offer and Acceptance: An agreement requires an offer and acceptance. The offer is an expression of willingness to enter into a contract, while acceptance is an agreement to the terms of the offer.
4. Consideration: Consideration is something of value that is exchanged between the parties involved in an agreement. Consideration can be in the form of money, goods, or services.
5. Certainty: An agreement must be certain and definite. The terms of the agreement must be clear and unambiguous to avoid any misunderstandings.
6. Capacity: All parties involved in an agreement must have the legal capacity to enter into a contract. This means that they must be of legal age, mentally competent, and not under duress or coercion.
7. Legality: An agreement must be legal and not against the law. Any agreement that involves illegal activity is not enforceable in court.
Conclusion
Agreement is an essential element in many aspects of life, from personal relationships to business transactions. A successful agreement requires a mutual understanding, intention to create legal relations, offer and acceptance, consideration, certainty, capacity, and legality. Understanding these characteristics of agreement is crucial for ensuring that agreements are legally binding and enforceable. As a result, it is essential to pay attention to these characteristics while drafting and negotiating agreements.