Question

What are the elements of a contract? How does it differ from a gift? Can an advertisement ever be a contract? When?

Answer 1

Main Elements of a contract:

a) Offer and acceptance of offer: Contract starts with an offer and acceptance of such offer. After accepting the offer it would become an agreement and when legal enforceiablity is added to the agreement it would become a contract.

b) Lawful consideration: There should be any consideration or exchange of particular things between parties to the contract.

c) Legal enforceiablity: There should be legal enforceiablity of a contract.

d) Party Capacities: All the parties to the contract should be capable of making a contract.

e) Consent should be free: There should be free consent of all the parties to the contract

Contract is different as compared to Gift since there is no consideration in exchange. also there is no legal enforceiablity. So due to lack of these major elements both are different.

Yes. Advertisement can be a contract when it includes all the above stated elements of the contract. Like advertisement company has entered into a contract with a company who wants to advertise its products. In these scenario there would be an offer and acceptance of such offer. There would also be a consideration which will be paid by the company to the advertisement company. Both the parties are legally enforceiable to enter into a contract. Company is giving its consent without any undue pressure of anything.