To reach an agreement, it is sufficient for the parties to reach a common understanding of their relative rights and duties, often referred to as the „gathering of minds“. The requirements for concluding the contract are more precise and relatively strict. A contract must contain the following essential elements: in an agreement, one person offers or offers something to another person who, in turn, accepts the same thing. In other words, the offer plus acceptance is in accordance with the agreement or we can say that an accepted proposal is an agreement. Treaties can be bilateral or unilateral. A bilateral treaty is an agreement by which each of the parties makes a promise or a series of promises. For example, in a contract for the sale of a home, the buyer promises to pay the seller US$200,000 in exchange for the seller`s promise to deliver ownership of the property. These common contracts take place in the daily flow of commercial transactions and, in cases where demanding or costly precedent requirements are requirements that must be fulfilled in order for the treaty to be respected. Each contracting party must be a „competent person“ who is legitimate. The parties may be natural persons („individuals“) or legal persons („limited communities“). An agreement is reached when an „offer“ is accepted.
The parties must intend to be legally bound; and, to be valid, the agreement must have both an appropriate „form“ and a legitimate purpose. In England (and in jurisdictions that apply English contractual principles), parties must also exchange „considerations“ to create „reciprocity of engagement,“ as in simpkins v Country.  An agreement is not always synonymous with a contract, as it may lack an essential element of a contract, such as for example. B a counterpart. An error is a misunderstanding of one or more parties and can be invoked as a reason for the invalidity of the agreement. The Common Law has identified three types of errors in the treaty: frequent errors, reciprocal errors and unilateral errors. An agreement is an agreement or agreement between two or more parties. A contract is a particular type of agreement that, by its terms and elements, is legally binding and enforceable in court. .