A contract is a legally binding agreement that exists between two or more parties to do or not to do something. An agreement begins with an offer and ends for compensation, but a contract must achieve another objective, that is, applicability. As a result of this violation, the aggrieved person can appeal against the culprit. So we can say that all contracts are an agreement, but not all agreements are contracts. He advised her to be careful and ask for a copy of the agreement. The third essential element of a valid contract is the existence of a “counterparty.” The consideration is the price paid by one party for the promise of the other party. An agreement is legally applicable only if each party gives something and receives something known as the quid pro quo. The something given or received is the price of promise and, subject to certain exceptions, is called “consideration”; Free promises are legally inapplicable. An agreement that does not offer room for legal obligations invalidates the contract. As noted above, a conclusion agreement must lead to a legal obligation. If an agreement is not able to create a legal obligation. It is not a contract. The principles underlying a tacit contract are that no person should receive unfair benefits at the expense of another person and that no written or oral agreement is required to obtain fair play.
For example, the tacit guarantee is a kind of tacit contract. When a product is purchased, it must be able to perform its function. A new refrigerator must remain refrigerated or the manufacturer or seller has not complied with the terms of a tacit contract. Contracting parties must be able to enter into contracts. But the question now is which parties are competent or not. Contracting parties must be 11 years of age (according to common law or 18 (18) years under Ghanaian law) and be in good health and not be disqualified by a law to which they are subject. A company created under the Corporations Act, 2019, Act 992, automatically obtains contractual capacity. If one of the parties suffers from minorities, madness, idiocy, drunkenness, people who are not composed lied, intoxicated, etc. The contract is legally unenforceable, except in certain specific cases, for example. B in case of necessities delivered to a minor or a madman, the supplier of goods is entitled to reimbursement of his estate.