A contract is generally a written or spoken agreement between persons or entities that includes obligations for each party (mutual obligations or mutuality) and enough specific information to be enforceable by either party (specificity).
The elements of forming an enforceable contract are generally (1) an offer made; (2) acceptance of the offer; and (3) consideration given by each party for the other party’s performance of the agreement—such as money in exchange for products or services, or mutual promises exchanged—which is often referred to as the bargained-for exchange.
The word "agreement" is often used interchangeably with the word "contract," and a document labeled as an agreement (with the necessary legal elements included) is as enforceable as a document labeled as a contract.
In Georgia, as in other states, a contract is a legally binding agreement between parties that is enforceable by law. The essential elements required to form an enforceable contract in Georgia are an offer, acceptance of that offer, and consideration. An offer is a clear proposal made by one party to another, indicating a willingness to enter into a contract on certain terms. Acceptance is the unambiguous agreement to those terms by the party to whom the offer was made. Consideration refers to something of value that is exchanged between the parties, which can be money, services, or a promise to perform or refrain from performing a certain action. This exchange is known as the 'bargained-for exchange.' Contracts can be written or oral, although certain types of contracts must be in writing to be enforceable under the Statute of Frauds, such as contracts for the sale of land or agreements that cannot be performed within one year. The terms 'agreement' and 'contract' are often used interchangeably, and a document labeled as an 'agreement' can be as enforceable as one labeled as a 'contract,' provided it contains the necessary legal elements.