What is a Contract? How is it Formed? Its essential elements
What is a Contract? How is it Formed? Its essential elements
- What is a Contract? (Definition)
The term Contract has been defined under Section 2 (h) of the Indian Contract Act ,1872. It defines a Contract as an Agreement enforceable by law.
An agreement cannot turn into a contract unless it can be enforceable by Law. So, in order to be enforceable, a contract must contain all the essential elements of a valid contract as defined in Section 10 of teh Indian Contract Act 1872.
Section 10- As per section 10 of the Act, “All agreements are contracts, if they are made by parties out of their-
- Free Consent
- Parties who are competent to Contract
- For a lawful consideration
- With a lawful object
- And are not expressly declared by the Act to be void.
Essential Elements Of a Contract-
The essential elements of a contract as defined under section 10 of the Indian Contract Act 1872 are-
- Agreement (Offer & Acceptance)
- Legal purpose
- Lawful Consideration
- Capacity to contract
- Consent to contract
- Lawful object
- Certainity
- Possibility of performance
- Not expressly declared void
- Legal formalities such as Writing, Registration..
What is a Contract? How is it Formed? Its essential elements