The word agreement is defined as an arrangement between two parties that takes place after much negotiation and which binds the two parties legally as a result of some course of action. In an agreement, one person makes an offer of something to another person and the other accepts the offer, this acceptance of the offer is known as an agreement.
Elements of an agreement
Two main elements of an agreement are:
- Offer/Proposal: In an agreement, a person makes an offer to another person by expressing his willingness to undergo an obligation in return for a promise. The person who makes the offer is known as the offeror and the person to whom the offer is made is known as the offeree.
- Acceptance: When the offeree gives his consent to the offeror by agreeing upon the terms and conditions of the agreement it is considered as acceptance.