An offer plus an acceptance to the offer make an agreement. But not all agreements are contracts. An agreement must be enforceable by law to make it a contract. An agreement is eligible to be enforceable by law when the following factors are satisfied:

1. Intention to create a legal relationship between the parties;
2. Lawful consideration and lawful object;
3. Capacity to contract;
4. Free consent;
5. The agreement is not declared void or illegal;
6. Certainty of meaning;
7. Possibility of performance of an agreement;
8. Other necessary legal formalities.

When two or more parties enter into a contract, one of the essential elements is that the parties should have an intention to create a legal relationship between themselves. An agreement will never reach a stage of a contract if there is no intention to create a legal relationship between the parties. So, for an agreement to become a contract, it is imperative that the parties who are entering into the contract must have an intention to create a legal relationship with each other. The intention should be such that if any of the parties do not perform their obligations then the other party can initiate legal proceedings against the defaulting party.