ca foundation business law chapter first the Indian contract act 1872 notes

(1)agreement 

when one party signifies to another his willingness to do or abstain from doing something and another party accept the offer when offer accepted then it will become an agreement.

agreement = offer + acceptance

contract

an agreement which is enforceable by law it is known as a contract.

contract = agreement + enforceable by law 

(2) free consent (consensus ad idem)

two or more persons are said to have consented when they are agreed upon the same thing in the same sense, this can also be known as the identity of mind in understanding this is known as consensus ad idem. and when consent must not caused by coercion, undue influence or misrepresentation and in case of caused are present then this contract is voidable.

(3) the capacity of the parties for making the contract 

the word capacity refers to the ability to make the contract every person to competent to contract when.           (a) is the age of majority

                     (b) sound mind person 

                     (c) the person not disqualified by the law     

qualification of the capacity of the contract   

qualification (a) it refers to the age of majority must be the age of 18 years of age, a person who is below the 18 years old it is considered as minor and therefore minor cannot make any contract.