The correct answer is: E. Whenever one or more persons promise to one or others to do or not to do something is known as contract.
A contract is an agreement between two or more parties that creates an obligation to do or not do something. The essential elements of a contract are:
- Offer and acceptance: There must be an offer by one party and an acceptance by the other party.
- Consideration: Each party must give something of value to the other party.
- Intention to create legal relations: The parties must intend to create a legally binding contract.
- Capacity: The parties must have the legal capacity to enter into a contract.
- Lawful object: The object of the contract must be lawful.
Writing, registration, and legal formalities are not essential elements of a contract. However, some contracts must be in writing, such as contracts for the sale of land. Registration is also required for some contracts, such as partnership contracts.
The possibility of performance clause is not applicable in the essential elements of a contract. This clause states that the contract is void if it is impossible to perform. However, this clause is not essential for a contract to be valid.
Therefore, the correct answer is E. Whenever one or more persons promise to one or others to do or not to do something is known as contract.