Contracts form part of every person’s daily life. A person may not be aware of it but entering into contracts is not only indispensable but a necessary part of his existence. A contract need not be in writing. It suffices that there is an agreement or meeting of mind between two parties.
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For instance, when a person buys food for lunch, a contract is thereby entered into between him and the restaurant whereby the restaurant engages that the food purchased is fit for consumption and the person who buys food engages that he will pay for the food he buys. When a person shops for equipment or a home appliance, a contract is thereby entered into by which the manufacturer engages that the equipment or home appliance is fit for the purpose it is intended while the buyer also engages that he will pay for his purchases. When a person rides a cab a contract is executed between the operator of the vehicle and the person whereby the operator of the taxi cab promises that it will take the person safely to his destination while the buyer engages that he will pay for the taxi fare.
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