Concluded Contract: Sethia, AIR 1968 SC 1308

CONCLUDED CONTRACT
The term "contract" is defined in Section 2{h) of the Indian Contract Act, 1872, as follows:
"An agreement enforceable by law is a contract." Thus, for the formation of a contract there
must be— (1) an agreement, and (2) the agreement should be enforceable by law.
An agreement is regarded as a contract when it is enforceable by law.'' In other words, an

agreement that the law will enforce is a contract. The conditions of enforceability are stated
in Section 10. According to this section, an agreement is a contract when it is made for some
consideration, between parties who are competent, with their free consent and for a lawful
object.
S. 10. Defines what agreements are contracts. —All agreements are contracts if they are
made by the free consent of parties competent to contract, for a lawful consideration and with
a lawful object, and are not hereby expressly declared to be void.
The term concluded contract is used to describe an agreement with the essential element to
constitute a valid contract.
Every contract is an agreement, but every agreement is not a contract. The following
conditions must be essential for an agreement to become contract:
Firstly, there must be an offer or proposal to which an unqualified acceptance must be given
to form an agreement [section 2]. Conditional acceptance of bid is not a concluded
contract; In Haridwar vs begum, AIR 1972 SC 1242, The High court held that the acceptance
of offer was not put in the course of transmission to the appellant; and so even assuming that
an acceptance need not come to the knowledge of the offeror, the appellant cannot contend
that here was a concluded contract on the basis of his offer contained in the communication.
Therefore, there was no concluded contract between the appellant and the government.
Secondly, the parties must be competent to contract [sections 11 & 12]. The parties should be
of age of majority and sound mind and not disqualified from contracting by any law to which
they are subject.
Thirdly, the agreements must have been made by free consent of the parties [sections 13 to
22]. Where the parties are not ad idem there cannot be a concluded contract; Fort Golster vs.
Sethia, AIR 1968 SC 1308.
Fourthly, the agreement must be for lawful consideration and with lawful object [sections 23
to 25 & 56]. Consideration is said to be unlawful if, it is forbidden by law, or it is of such a
nature that if permitted it would defeat the provisions of any law, or it is fraudulent, or it
involves or implies an injury to the person or property of another, or the court regards it as
immoral or opposed to public policy. There are certain conditions enumerated under section
25, under which a contract without consideration is treated to be a valid one.
Fifthly, the agreements must not have been expressly declared to be void [sections 24 to 30 &
56]. Under the Act, the following agreements are declared void:
1.Where both the parties to an agreement are under a mistake of fact essential to the
agreement [section 20];
2.Agreement in restraint of marriage of any person other than minor [section 26];
3.Agreement in restraint of trade [section 27];
4.Agreement in absolute restraint of judicial proceedings [section 28];
5.Agreement, the meaning of which is not certain, or capable of being made certain [section
29];
6.Agreement by way of wager [section 30];
7.Agreement to do an act which is impossible in itself or which subsequently becomes

impossible without any default of a party [section 56].
Sixthly, all agreements must fulfil the requirements or formalities necessitated by any
particular law. An agreement must be in writing, attested and registered, if so, required by
any law in force in India. Certain agreements such as-
1.Agreement to pay a time-barred debt; or
2.Agreement to transfer of immovable property; or
3.Agreement to refer the matter to an arbitrator in case of disputes,
are such agreements which must be, reduced to writing and registered before they can be
legally enforced.
Case laws
In Thermal Power Ltd. vs. State of Madhya Pradesh, AIR 2000 SC 1005. The Court stated
that entering into the said contract which prescribed the terms and conditions under the
statute which means that contract incorporates specific terms and conditions mentioned in it,
which are statutory then the said contract to that extent is statutory”
In D. Srinivas vs. SBI Life Insurance Co. Ltd, Civil, 2216 of 2018. The Supreme court
stated that facts and circumstances indicate that the insurer was trying to bargain out which
was accepted by the company. It was held by the court that there was a complete contract as
there was presumption which was made clearly of the acceptance of the proposal in favour of
the proposer.
Conclusion
A Concluded contract is an agreement that is lawfully binding that exists between two or
more parties to try and do or not do one thing. An agreement normally begins from an offer
proposed and ends on consideration, also alongside a contract has to achieve and aim at
another target i.e. enforceability of Law. However, due to the breach of the contract, the legal
remedy ought to be imposed should be provided or given to the aggrieved party against the
rationale.

Concluded Contract: Sethia, AIR 1968 SC 1308

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CONCLUDED CONTRACT

An agreement is regarded as a contract when it is enforceable by law.'' In other words, an

3.Agreement in restraint of trade [section 27];

4.Agreement in absolute restraint of judicial proceedings [section 28];

6.Agreement by way of wager [section 30];

7.Agreement to do an act which is impossible in itself or which subsequently becomes

1.Agreement to pay a time-barred debt; or

2.Agreement to transfer of immovable property; or

3.Agreement to refer the matter to an arbitrator in case of disputes,

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