What is a Contract?
a) A contract is a legally enforceable agreement. There must be an agreement
b) It must be a legally enforceable agreement.
In broad terms agreements will be one of two types;
Bilateral agreements: by far the most common in practice consist of a promise in exchange for a promise. Bilateral means that both parties are bound on the exchange of promises, athough there has yet to be any performance of those promises. A typical sale of goods agreement is bilateral.
Unilateral agreements: consist of a promise in exchange for an act. It follows that only one party is bound at the outset by a promise. The other's acceptance is the performance of the requested act.