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Topic:-Essential Elements of A Contract: By: - Akshi Chandyoke

The document discusses the essential elements of a valid contract according to Indian contract law. It outlines 10 key elements: [1] proposal and acceptance, [2] lawful consideration with a lawful object, [3] capacity of parties to contract, [4] free consent without coercion or misrepresentation, [5] the agreement cannot be expressly declared void, [6] certain agreements require writing and registration, [7] the agreement must create legal relations or be capable of doing so, [8] the terms must be clear and certain, [9] the contract must be possible to perform, and [10] the contract must be enforceable by law. These elements distinguish a valid, legally binding contract from a simple agreement.

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Akshi Chandyoke
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109 views12 pages

Topic:-Essential Elements of A Contract: By: - Akshi Chandyoke

The document discusses the essential elements of a valid contract according to Indian contract law. It outlines 10 key elements: [1] proposal and acceptance, [2] lawful consideration with a lawful object, [3] capacity of parties to contract, [4] free consent without coercion or misrepresentation, [5] the agreement cannot be expressly declared void, [6] certain agreements require writing and registration, [7] the agreement must create legal relations or be capable of doing so, [8] the terms must be clear and certain, [9] the contract must be possible to perform, and [10] the contract must be enforceable by law. These elements distinguish a valid, legally binding contract from a simple agreement.

Uploaded by

Akshi Chandyoke
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 12

TOPIC:-

Essential Elements
BY:- AKSHIOf A Contract
CHANDYOKE
What is a Contract?

 A contractis an agreement between two or


more parties to do, not do, or promise
something.

 Contracts can come in many forms — they


can be oral or written, implied or express, and
legally enforceable or not.
Definition of contract

 According to section 2(h) of the Indian Contract


Act,1872 " An agreement enforceable by law is a
contract."

 A contracttherefore, is an agreement the object of


which is to create a legal obligation i.e., a duty
enforceable by law.
CONTRACT

AGREEMENT+ ENFORCEABILITY

4
AGREEMENT

 An agreement is defined as “ every promise


and every set of promises, forming
consideration for each other.”
 A proposal when accepted becomes a promise.

Agreement= Offer + Acceptance

5
ENFORCEABILITY
 Enforceability is the “legal obligation” which
imposes upon a definite person or persons the
necessity of doing or abstaining from doing
something.
 An agreement which gives rise to a social
obligation is not a contract.
Agreement + Legal obligation Contract
Agreement + Social obligation Contract

6
EXAMPLES
 A promises to sell his car to B for Rs. 10,000
received by him as the price of the car. This
agreement gives rise to an obligation on the
part of A to deliver the car to B. This
agreement is a contract.
 A father promises to pay his son Rs. 1000 every
month as pocket money. Later he refuses to
pay. In this case the agreement is not a
contract as social obligation is involved.

7
Essential Elements of a Valid Contract

Different sections of the Indian Contract Act lay down the essential
elements of the contract.

They are as under:

1) Proposal and acceptance

2) Consideration - lawful consideration with a lawful object:-


As a general rule, agreement without consideration is void. The
promise for a promise in return is consideration.

 EG: If A signs a contract with B such that A will paint B's house for
$500, A's consideration is the service of painting B's house, and B's
consideration is $500 paid to A.
3) Capacity of parties to contract – Competent parties:-
Every person is competent to contract who is of the age of majority
according to the law to which he is subject, and who is of sound mind,
and is not disqualified from contacting by any law to which he is
subject.

4) Free Consent:
Parties to a contract must give their consent. The parties must be ad
idem, for example both the parties must agree upon the same thing in
the same sense. Two or more persons are said to consent when they
agree upon the same thing in the same sense. Mere consent is not
enough. Consent of parties must be free, for example it must not have
been obtained (1) coercion, (2) undue influence, (3)fraud, (4)
misrepresentation, or (5) mistake.
5) An agreement must not be expressly declared to be void :
A void agreement is not enforceable by law (Sec 2(g)). It has no legal
sanctity. It does not give rise to any rights and obligations. Various
agreements are expressly declared void under the Act.

6) Writing and registration:


Oral contract is a valid contact. However the contract must be in writing
and registered.

7) Legal relationship:
Agreements which create legal relations or are capable of creating legal
relations are contracts.
for example, an invitation to a dinner does not create any legal relation
and therefore is not a contract.
8) Certainty:
The terms of a contract should be clear. In other words, the
contract must not be vague. Contracts which are vague cannot be
enforced.

9) Possibility of performance:
Contracts based on impossibility of performance are not valid.
The contracts must be capable of being performed.
 
10) Enforceable by Law:
A contract in order to be valid must be enforceable by law which
element distinguishes agreement and contract. It is enforceable by
law it is contract otherwise it is an agreement.
THANK YOU

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