Toyin Omoniyi All contracts are agreements but not all agreements are contracts. There are certain requirements that must be met before a contract can be valid.
OFFER
A person makes an offer to another person with terms and conditions which will help the person decide whether or not he wants to accept the offer. This is the first step to creating a valid contract. The offer may be oral or in writing.
If the other person is satisfied with the terms of the offer, he may go ahead and accept it.
ACCEPTANCE
This is where the person accepts the terms of the offer and agrees to be bound by it. He has to communicate the acceptance to the person making the offer, either expressly or impliedly. For example, if Mr. A offers to sell something to Mr. B, and Mr. B takes the item and makes use of it, it can be said that Mr. B has impliedly accepted Mr. A’s offer.
Before the offer is accepted, it is merely like a promise being made with a condition attached to it. But once the offer is accepted by agreeing to the conditions, they are on their way to having a valid contract.
CONSIDERATION
This simply means that something of value is given for the offer that was made. Either the person making the offer or the person accepting the offer must show that he has enjoyed some benefits from the other person. Consideration is important in making a contract binding in law. If there is no valid consideration, the agreement cannot be enforced.
The consideration must not be illegal or immoral otherwise it will not pass as a consideration. For instance, if Bassey promises John N500,000 as consideration for killing his wife’s lover, the N500,000 will not be regarded as a consideration because it is illegal.
There was an instance where Esther promised to pay Uche N10,000 if Uche helped influence a judge to dismiss a particular case. Uche was successful in influencing the judge but Esther refused to pay the money. Uche could not enforce the payment because the transaction was illegal and against public policy.
INTENTION TO CREATE A LEGAL CONTRACT
It must be made very clear to both parties that they actually intend to enter into a legal contract. If there is an offer, acceptance and even consideration but no intention to create a legal contract, it will not be considered a valid contract and will not be enforceable.
So if people use words like “a gentleman’s agreement” or “binding in honour only”, it shows that there was no intention to create a legal contract, therefore it cannot be enforceable.
Also, if it is purely domestic like a family or social affair, then there is hardly any intention to create a legal contract. A good example is the case of a husband who deserted his wife and went to live with another woman. The husband entered into an agreement with his wife that he would transfer some properties and money to her to calm her down. He failed to do so and the wife tried to enforce the agreement. She was unable to because it was purely a domestic matter...
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