For example, it requires that an agreement to pay a time barred debt must be in writing and an agreement to make a gift for natural love and affection must be in writing and registered Sec. If the offeree does not reply, there is no contract, because no obligation to reply can be imposed on him, on the ground of justice no agreement because such condition cannot be imposed on the offeree. Two or more persons are said to consent when they agree upon the same thing in the same sense. . Possibility of Performance The terms of the agreement must be such as are capable of performance.
An agreement is legally enforceable only when each of the parties to it gives something and gets something. The above are the 7 essentials of a valid contract. It does not give rise to any rights and obligations. Both parties to a contract must have the intention to create legal relations while entering into the contract. If the object is unlawful for one or the other of the reasons mentioned above the agreement is void.
This agreement is void because it is an agreement to do an impossible act. Registration is required in such cases and legal formalities in the relevant legislation should be strictly followed. To be deemed as valid, it should include the essential elements of a contract, such as legal obligations, lawful obligations, free consent, and so on. By word of mouth; typically where an offer is accepted e. As a general rule, agreement without consideration is void. According to Section 11 of Indian Contract Act, 1872.
According to Contract Act, a contract may be oral or in writing. In other words, they must be capable of entering into a contract. Consideration need not be in cash or in kind. The term lawful means that the offer and acceptance must satisfy the requirements of Contract Act. Example : X promised to marry none else except Y and in default pay her Rs 1,00,000.
Consideration is the cause of the promise. An agreement is enforceable only when both the parties get something and give something. An offer needs to be clear, definite, complete and final. If these legal formalities are not complied to, the said contract cannot be enforced by the law. Each sample has been carefully selected to make sure that you find what you need.
It must not be illegal or immoral or opposed to public policy. Article shared by Essential elements of a valid contract in business law are explained below: According to Sec. Now that you know about these classifications, you should be able to identify the type of contract you would be in. It has no legal sanctity. Agreement not Expressly Declared Void The agreement must not have been expressly declared void under the provisions of Sections 24 to 30 of the Indian Contract Act, 1872. It is only a one sided offer.
When consent is obtained by unfair means, the contract would be voidable. Oftentimes a contract is defined as a legally binding agreement that is enforceable by the law. Certainty and Possibility of Performance The agreements, in which the meaning is uncertain or if the agreement is not capable of being made certain, it is deemed void. When the person to whom the proposal is made signifies his assent thereof the proposal is said to be accepted. 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.
This simply means that a contract can either be in the form of writing written contract or it can be made verbally verbal contract. A proposal when accepted becomes a promise or agreement. Price for goods is therefore, consideration here. Thus the price is the consideration for contract of sale which should be in terms of money. Under different sections of the Contract Act, 1872, the following agreements have been said to be expressly void, viz :- i Agreements made with the parties having no contractual capacity, e. For an agreement there must be a lawful offer by one and lawful acceptance of that offer from the other party.
For a contract to be valid, there must be consent from both parties. Each of the mentioned classification is discussed below. This agreement is void because it is an agreement to do an impossible act. In other words, the contract must not be vague. The parties must be ad idem, for example both the parties must agree upon the same thing in the same sense. It is a social agreement. This means that there must be consensus ad idem i.