agreement

Agreement in law is the exchange of promises by at least two parties to do or not to do some act or engage in certain conduct. Agreements may be oral, written or partly oral and partly written. A common intention must exist between the parties and an intention to enter legal relations, and this the essence of the agreement reached to enter into a legally binding relationship.

An intention to enter legal relations is presumed in commercial transactions, but not in social or family dealings and relations. The parties must have legal capacity to enter into the agreement.

See contract.

Usage: The parties' agreement was evidenced in writing, thus the parties were bound by the written contract.

Related Words: contract; consensus ad idem; quid pro quo; legal capacity; consideration; offer; acceptance; agency agreement; distribution agreement; restrictive covenant; framework agreement; locus standi; option agreement; umbrella agreement.