2.  An agreement, which legally binds the
parties
 S2 (h) Contracts Act 150 – an enforceable
agreement by law

3. OFFEROR
 -Person who
proposes the
contract
OFFEREE
 -Parties to whom
the proposal is
made
Example: If A makes an offer to
sell car for RM35000 to B

5. OFFER
ACCEPTANCE
CONSIDERATIO
N CAPACITY
INTENTION TO
CREATE LEGAL
RELATION
CERTAINTY