In Re Selectmove (1995), Selectmove owed a back tax to domestic income. The IR was able to put Selectmove into liquidation because it was unable to fulfill its liability. There was a meeting at which Selectmove offered to pay all taxes as soon as they expired and that it would pay the $1,000 per month delay from the following February. The collector informed Selectmove that this proposal required the agreement of his supervisor and that he would find out if it was not acceptable. Selectmove later, the IR began liquidation, before which Selectmove resisted and relied on the agreement reached at the July meeting. Consideration is an essential element of contract formation. It may consist of a promise to perform a desired act or a promise to abstain from an act to which one is entitled by law. In a bilateral treaty – an agreement by which both sides exchange reciprocal promises – each promise is considered a sufficient consideration for the other. In a unilateral contract, an agreement whereby one party makes a partisan agreement in exchange for the performance of the other, the benefit is a counterpart to the promise, while the promise is a consideration of the benefit. A contract is a particular type of agreement that meets certain requirements to create legally binding obligations between parties that can be enforced by a court.
An agreement can only mean that one party accepts the offer of another party. Since this scenario does not involve any consideration, it is not a contract. Other common examples of non-contract agreements are gentlemen`s agreements and unlicensed betting pools. The key element of all contracts is that they are legally unenforceable. The contract is something you sign with your signature and once yoy sign it, you can`t break it if you do, its illegal whiles, simple agreements are something someone says, but they could prevent an agreement from being imposed in court by litigation because there are no elements of a contract.