Agreements

An agreement is a mutual arrangement between two or more parties regarding their rights and duties in relation to a particular matter. In many legal systems, an agreement becomes a contract when it includes certain elements and is legally enforceable. Agreements can be formal or informal and may address commercial, personal, or public affairs. In practice, not every agreement is binding in law; some are moral or social promises without legal effect.

The essential elements of a legally enforceable contract are offer, acceptance, and consideration, along with the parties’ intention to create legal relations, capacity to contract, and legality of the purpose. An offer sets out a possible bargain; acceptance completes the agreement; consideration is the value exchanged. Capacity requires those entering the contract to understand the terms, and legality means the purpose must be lawful. Some contracts can be oral, but others must be in writing to satisfy the statute of frauds, such as real estate transfers, guarantees, and contracts lasting beyond a year.

When a contract is breached, remedies may include damages, specific performance, or injunctions. Construction of terms relies on express provisions and implied terms from conduct, industry practice, or law.

Common types include sale and service agreements, employment contracts, leases, non-disclosure agreements, and settlement agreements. International agreements include treaties and conventions, which may be governed by international law and subject to dispute resolution mechanisms. Drafting and interpretation emphasize clarity, governing law, remedies, termination rights, and dispute resolution.