When Two Persons Agree to Enter into an Agreement in the Future, There is Between Them…

A contract is a legally binding agreement between two or more parties that outlines the terms and conditions of a transaction or relationship. When two persons agree to enter into an agreement in the future, there is a form of agreement between them, but it may not yet qualify as a contract.

The general rule in contract law is that there can be no contract unless all the essential elements of a contract are present. These include an offer, acceptance, consideration, legality, capacity, and intention to create legal relations. While an agreement to enter into a contract in the future may satisfy some of these elements, it may not satisfy all.

An offer is a proposal made by one party to another with the intention of creating a legally binding agreement. An agreement to enter into a contract in the future may constitute an offer, but only if it contains all the essential terms of the contract or makes clear that the terms will be agreed upon later.

Acceptance is the agreement of the offeree to the terms of the offer. In the case of an agreement to enter into a contract in the future, acceptance may occur when the parties agree to the essential terms of the contract or when one party performs an act in reliance on the agreement.

Consideration is something of value that is exchanged between the parties to a contract. In the context of an agreement to enter into a contract in the future, consideration may be provided by one party promising to do something in exchange for the other party`s promise to enter into the contract later.

Legality refers to the requirement that the subject matter of the contract is lawful and not against public policy. An agreement to enter into an illegal or immoral contract would not be enforceable.

Capacity refers to the legal ability of the parties to enter into a contract. A minor or a person lacking mental capacity may not have the capacity to enter into a contract.

Finally, the intention to create legal relations is an essential element of a contract. An agreement to enter into a contract in the future may not be binding if it is merely a social or informal agreement without the intention to create legal relations.

In conclusion, when two persons agree to enter into an agreement in the future, there may be a form of agreement between them, but it may not yet qualify as a contract unless all the essential elements of a contract are present. It is always advisable to seek legal advice before entering into any agreement or contract to ensure that your rights and obligations are protected.