The 3 elements of an agreement
What you need to know about an agreement is that three essential elements must exist, these are offer, acceptance and consideration.
You are making an offer when you explain to someone that you will enter into a contract with them on certain terms.
And your offer is effective only if it has valid consideration (more about that below) and shows that you intend to create a legal obligation.
So here are the rules for an offer:
Also, acceptance is important.
You need to tell the offerer that you accept an offer for it to be effective.
Now if you are the one making an offer, you can explain that the person accepting must accept an offer in a certain way, for example: “you need to accept this offer by written notice to us in an email."
Also, silence is not a way that you can accept an offer.
Now for the rules about consideration...
In simple terms, if you are making a promise to do something in a contract, something must be given to you in return for making that promise to do something.
So here are the essential elements of consideration: