A contract is basically an agreement between two consenting and capable parties wherein the parties intend to be binding at law setting out the promises and responsibilities of each party to the contract. The contract can be in writing or verbal. A written contract is preferred because proof of its terms can be established by looking at its terms. Some contracts in some legal jurisdictions must be in writing and will be of no effect if not in writing. For example, in many jurisdictions, to transfer ownership of land, requires a written deed, failing which land cannot be transferred or sold to the purchaser. While oral contracts might be valid, in case of any disagreement as to the terms, there is great difficulty in establishing the terms where only the recollections and interpretations of each party are the only evidence absent any witness or written proof. In order for a contract to exist, the following essential elements must be present: Intention to create legal relations, agreement (offer and acceptance), and consideration. The absence of an essential element will render the contract void, voidable or unenforceable.
Legal Intent.
An agreement is not enforceable unless the parties intended it to be legally binding. Whether there is such an intention is a question of fact. The court can infer such an intention from the contract. As a general rule, the court will presume that there probably was no intention to create legal relations in cases of domestic, social or family agreements any agreement made in a non-commercial unless legal intent is clearly stated. Like in the case of Balfour v Balfour 1919, wherein the wife brought a suit against her husband for his refusal to fulfill his promise of giving her £30 monthly, at the time when they decided to live separately. The court ruled that their agreement was not legally binding, and that the husband cannot be enforced to pay her the said amount monthly because there was no contract to start with, so the husband was not in breach of any legal contract between them.