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    Essential Elements of A Valid Contract

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    Udaykiran Bheemagani
    The document outlines 10 essential elements for a valid contract: 1) Offer and acceptance between parties resulting in agreement 2) Intention to create legal obligations rather than social agreement 3) Consideration where each party provides something of value 4) Capacity of parties to enter contract competently and legally 5) Free consent without coercion, undue influence, fraud or mistake

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    Essential Elements of A Valid Contract

    Uploaded by

    Udaykiran Bheemagani
    91 views3 pages
    The document outlines 10 essential elements for a valid contract: 1) Offer and acceptance between parties resulting in agreement 2) Intention to create legal obligations rather than social agreement 3) Consideration where each party provides something of value 4) Capacity of parties to enter contract competently and legally 5) Free consent without coercion, undue influence, fraud or mistake

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    Essential Elements of a Valid Contract

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    The document outlines 10 essential elements for a valid contract: 1) Offer and acceptance between parties resulting in agreement 2) Intention to create legal obligations rather than social agreement 3) Consideration where each party provides something of value 4) Capacity of parties to enter contract competently and legally 5) Free consent without coercion, undue influence, fraud or mistake

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    91 views3 pages

    Essential Elements of A Valid Contract

    Uploaded by

    Udaykiran Bheemagani
    The document outlines 10 essential elements for a valid contract: 1) Offer and acceptance between parties resulting in agreement 2) Intention to create legal obligations rather than social agreement 3) Consideration where each party provides something of value 4) Capacity of parties to enter contract competently and legally 5) Free consent without coercion, undue influence, fraud or mistake

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    MBA –III Semester,

    MB 302, LEGAL ASPECTS OF BUSINESS


    Unit: 1
    Topic: Essential Elements of a valid Contract
    Dr. Faryas Kausar Ansari Page | 1
    Visiting Faculty
    Dept. of Management
    MMHA&P University, Patna.

    Essential Elements of a valid Contract:

    Essential Elements of a valid Contract:


    1. Offer and Acceptance: There must be a “lawful offer” and a
    “lawful acceptance” of the offer, thus resulting in an agreement.

    Dr. Faryas Kausar Ansari, Visiting Faculty, MMHA&PU, Patna.


    2. Intention to create legal relation: There must be an intention
    among the parties that the agreement should be attached by
    legal consequences and create legal obligations. Social
    Page | 2
    not give rise to a contract.
    3. Lawful Considerations: An agreement is legally enforceable
    only when each of the parties to it, give something and get
    something. This something is the price for the promise and is
    called “Consideration”. Only those considerations are valid
    which ‘Lawful’
    4. Capacity of parties: The parties to an agreement must be
    competent to contract, otherwise it cannot be enforced by a
    court. To be competent, the parties must be on majority age and
    of sound mind and must not be disqualified from contracting by
    any law to which they are subject.
    5. Free Consent: “Consent “means that the parties must have
    agreed upon the same thing in the same sense. Consent is not
    enough for making a contract. That to must be free. It is said to
    be free when it is not caused by1. Coercion, or (i) undue
    influence, or (iii) fraud, or (IV) misrepresentation, or (v) mistake.
    6. Lawful object: For the formation of a valid contract, it is also
    necessary that the parties to an agreement must agree for a
    lawful object. The object must not be fraud or illegal or immoral
    or must not imply injury to the person or property of other.

    Dr. Faryas Kausar Ansari, Visiting Faculty, MMHA&PU, Patna.


    7. Writing and Registration: Generally, the contracts may be oral
    or written. But in special cases, it lays down that the agreement
    must be in writing or registered to be valid.
    Page | 3
    8. Certainty: Any agreement can be enforced if its meaning is
    certain or capable of being made certain agreements the
    meaning of which is not certain, are void.
    9. Possibility of performance: The terms of the agreement must
    also be capable of performance physically as well as legally.
    10. Not expressly declared void: The agreement must not have
    been expressly declared void under the act. There are some
    types of agreements which have been expressly declared to be
    void.

    Dr. Faryas Kausar Ansari, Visiting Faculty, MMHA&PU, Patna.

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