This section is from the book "Elementary Banking", by John Franklin Ebersole. Also available from Amazon: Elementary Banking.
A contract is an agreement containing a promise that is enforceable in law. "Agreement" shows that there must be at least two parties, one of whom has made an offer which the other has accepted. It must contain a promise to do something. It must be a promise that can be enforced in a court of law - that is, if one party refused to do what he had promised the other can go into court and compel him to do so or get damages. Not all agreements containing promises are enforceable in law - that is why we say that this enforceability is necessary to make a contract. For instance, agreements made jokingly, and social agreements, cannot be enforced in court. The motives which caused the parties to make the agreement have nothing to do with its enforceability. Contracts may result from words or acts.
 
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