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Essentials of a valid contract: According to section 10, all agreements are contracts if they are made by the free consent of the parties competent to contract, for a lawful consideration & with a lawful object & are not expressly declared to be void. In order to become a contract, an agreement must have the following essentials: 1) Offer & Acceptance 2) Intention to create legal relationship Agreements of social or domestic nature do not contemplate legal relationship; as such they are not cont
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  Essentials of a valid contract:   According to section10, all agreements are contracts if they are made by thefree consent of the parties competent to contract, for alawful consideration & with a lawful object & are notexpressly declared to be void.In order to become a contract, an agreement must havethe following essentials: 1) Offer & Acceptance2) Intention to create legal relationship Agreements of social or domestic nature do notcontemplate legal relationship; as such they are notcontracts.Ex. A husband promised to pay his wife Rs 5000/- per month. Later they separated, husband failed to pay. Then wife sued the husband. Held, agreementwere outside the realm of contract altogether.  Ex. In an agreement, a document contained acondition that it shall not be attended by give rise toany legal relationship, rights, duties, consequenceswhat so ever or be legally enforceable or be thesubject of litigation, but all such agreements &transactions are binding in honor only. Held, thecondition was valid & the agreement was not binding one. 3)   Lawful consideration: Consideration- Anadvantage or benefit moving from one party to theother. It is one of the essential elements to support acontract. An agreement made without considerationis “Nudum Contract” (A nude contract) & is void.Consideration is a technical term used in the senseof “Quid Pro Quo”, i.e., SOMETHING INRETURN. When a party in an agreement promisesto do something, he/she must get something inreturn. This something is defined as  “Consideration”. The agreement is legallyenforceable only when both the parties givesomething & get something in return. Consideration need not necessarily be in cash orkind. It may be an act or an abstinence orpromise to do or not to do something. It may bepast, present or future. But it must be real &lawful. [Sec 2(d), 23 & 25] 4) Capacity of parties or competency: The parties tothe agreement must be capable of entering into avalid contract. Every person is competent to contractif he; a)Is of the age of majorityb)Is of sound mind c) Is not disqualified from contracting by any lawto which he is subject.[sec. 11& 12] .  Flaw in capacity to contract may arise fromminority, lunacy, drunkness etc. If a partysuffers from any flaw in capacity, theagreement is enforceable except in somespecial cases.5) Free & Genuine consent – the consent of theparties is said to be free when they are of the samemind on all the material terms of the contract.The parties are said to be of the same mind whenthey agree about the subject matter of thecontract in the same sense at the same time[sec.13]. There is absence of free consent if theagreement is induced by coercion, undueinfluence, fraud, misinterpretation etc.[sec.14]6) Lawful object – i..e the object must not be illegal,immoral or opposed to public policy[sec.23].7) Agreement not declared void [Sec. 24 – 30 & 56]

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Nov 17, 2017
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