ESSENTIAL ELEMENTS OF A VALID CONTRACT
ESSENTIAL ELEMENTS OF A VALID CONTRACT
Section 10 of the Indian Contract Act, 1872
provides that "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 nothereby expressly declared to be void".
The
essential elements of a valid contract are:
(i) An
offer or proposal by one party and acceptance of that offer by another party
resulting in an agreement-consensus-ad-idem.
(ii) An
intention to create legal relations or an intent to have legal consequences.
(iii)
The agreement is supported by lawful consideration.
(iv) The parties to contract are legally capable
of contracting.
(v) Genuine consent between !he parties.
(vi) The object and consideration of the contract
is legal and is not opposed to
public policy.
(vii)
The terms of the contract are certain.
(viii)
The agreement is capable of being performed Ie., it is not impossible of being
performed.
