An agreement that is enforceable in law is called a contract.
Here's why:
1. A contract is a legal agreement between two or more parties. Each party agrees to do or not to do something in exchange for some benefit, typically referred to as consideration. In simpler terms, it's a promise or set of promises that the law will enforce.
2. For an agreement to be considered a contract, it generally must contain the following elements:
Offer: One party proposes an arrangement to another.
Acceptance: The other party agrees to the terms of the offer.
Consideration: There is something of value exchanged between the parties.
Mutual Intent: Both parties intend to create a binding agreement.
Capacity: Both parties must have the legal ability to enter into a contract.
Legality: The contract's purpose must be legal.
3. Unlike a decree or a declaration which are generally formal statements or orders typically issued by a government or authority, or an offer which is a proposal but not yet binding, a contract actively binds the parties involved and can be enforced by law. If one party fails to fulfill their stipulated duties, the other can seek legal remedies.