The third essential element of a valid contract is the existence of “consideration”. The consideration was defined as the price paid by one party for the promise of the other party. An agreement is only legally enforceable if each of the parties gives something and receives something that is qualified as consideration. What is given or received is the price of the promise and, subject to certain exceptions, is called “consideration”; Unpaid engagements are not legally enforceable. For an agreement to be considered a contract, the law requires that certain ingredients be present. These requirements or criteria are generally referred to as elements of a valid contract. For a contract to be concluded, an offer must support the acceptance for which consideration is for consideration. Both parties must intend to establish a legal relationship in a legitimate matter that must be freely registered and should be possible. The five main elements of a valid contract and they are the offer, acceptance, intention to create legal relationships, capacity of the parties and legitimate consideration. An agreement is a form of referral between different parties, which can be written and oral and which is on the honour of the parties for their execution, instead of being enforceable in one way or another. The following cases illustrate how all contracts are agreements; In the case of an invitation to treatment where an invitation to treatment is only an invitation to receive an offer. An invitation to treatment is an indicator of a party`s willingness to negotiate adherence to a treaty. It is a technique used by one party that wants another party to make an offer, and cannot be interpreted or the conditions are accepted as if it were a valid legal offer in itself.
(Carlill v Carbolic Smoke Ball Company). The exhibition of goods in a store is an invitation to process. (Pharmaceutical Society of Great Britain v Boots Cash Chemists (Southern) Ltd). An advertisement that gives information about the goods for sale and their price is usually more of an invitation to treatment than an offer. (partridge vs. critote). Subject to more favourable provisions for workers negotiated in a collective agreement (§19), the grounds for dismissal (§15) include: with regard to ownership, the court held that the five conditions of a contract were valid, namely (1) offer, (2) acceptance, (3) consideration, (4) intention to create a legal relationship and (5) contractual capacity. These must coexist in order for a contract to be concluded by law. It was found that a valid sales contract had been concluded, designating the property.
Agreements that do not offer a margin of legal commitment lead to the invalidity of the contract. As stated above, to become a contract, an agreement must create an enforceable legal obligation. If an agreement is not able to certify an obligation enforceable by law. It is not a contract. The parties must intend that the agreement will lead to legal consequences and create legal obligations. Agreements of a social or domestic nature do not provide for legal relations and, as such, do not create a contract. An agreement to eat with a friend is not an agreement intended to create relationships of infringement and therefore not a contract. Agreements between spouses also do not intend to establish a legal relationship and therefore do not give rise to any contract, as stated in Balfour v. Balfour  2 KB 571 – a complaint to enforce the woman`s promise to maintain E30 per month failed on the grounds that it was a domestic agreement with no intention of creating legal relationships.
A form of discrimination against women has also been found in many collective agreements, particularly with regard to health insurance and other benefits. Until recently, in most collective agreements between unions and companies, the wives of male workers could benefit from employer-provided health insurance, but the husbands of female workers were not covered. .