Presentation

By

Waqas Balouch

Essential of valid Contract

Topic

INTRODUCTION

Contract is an agreement

between

two parties

Where legal right are created , Such right are civil in nature .

Relevant Provision ‘s

• Section 2(h) of Contract Act, 1872

• Section 2(e) Contract Act, 1872

• Section 10 of Contract Act 1872

Cross Reference

• Indian Contract Act 1872

• Specific relief Act 1877

• Section 11 to 30 of contract Act 1872

Meaning of term contract Literal Meaning :-

According to oxford dictionary

A formal agreement

Legal Meaning:-

An agreement between two are more parties creating Obligation that are enforceable or recognizable by law

According to Black’s law dictionary

11th Edition

9th Edition page # 365

Salutatory definition of term contract

U/S 2(h) of Contract Act, 1872

An agreement enforceable by law

Juristic view

An agreement enforceable at law

According to Pollack

According to Salmond

Contract is an agreement creation and defining obligation between the parties

Essential of valid contractU/S 10 of contract Act 1872

• Agreement

• Competency of parties

• Free consent

• Lawful object

• Lawful consideration

• Not to be void

Agreement as essential of valid contract

Agreement = Offer + Acceptance

PACTA SUNT SERVENDA

“Agreement are made to be fulfilled”

Statutory definition of agreement U/S 2(e) of Contract act, 1872

Every promise and every set of promises forming the consideration for each other is a agreement

Maxim

Competency of parties U/S 11 Of Contract act, 1872

Section 11 of contract act 1872, provides that, Every person is competent to contract who

Attained the age of majority ;

Is of sound mind ;

Is not disqualified by law.

Illustration

‘A’ aged 20 promises to sell his car to ‘B’ for Rs 3 Lac. It is a valid contract because ‘A’ is competent to contract.

Free consent U/S 14 of contract act,1872

Section 14 of the contract act 1872 lays down that,

Consent is not free if cause by:

Coercion ;

Undue influence;

Fraud;

Misrepresentation ;

Mistake.

Illustration

‘A’ compels ‘B’ to enter into a contract on the point of pistol.It is not a valid contract as the consent of ‘B’ is not free.

Lawful consideration U/S 23 of contract act,1872

A contract is valid if it is entered into a lawful consideration. A contract whose consideration is not lawful so it considered to be illegal.

u/s 23 of contract act 1872 a contract is said to have lawful consideration if it is;

•I f is not forbidden by law;• It would not defeat the provision of any law;• It is not fraudulent;• It does not involve injury to the person or property of another;• Not opposed to public policy.

Illustration

‘A’ promises to sell his car to ‘B’ for Rs. 5 Lac. This is an agreement enforceable by law as it has lawful consideration

Lawful object This means that the object of entering an agreement should not be illegal Or fraudulent or immoral against public policy.

‘A’ promises to pay ‘B’ Rs. 5 thousand of ‘B’ beats ‘C’. This agreement Is illegal as its object is unlawful.

Illustration

Agreement must not to be void For a valid contract the agreement made between the parties must not be one of the Void agreement.

Which agreement is void u/s 24-30 of contract act 1872

Agreement without consideration: u/s 24 of contract act,1872

Agreement is restraint of marriage u/s 26 of contract act,1872

• Agreement is restraint of trade u/s 27 of contract act,1872

• Agreement is restraint of legal proceeding u/s 28 of contract act,1872

• Agreement by way of wager u/s 30 of contract act,1872

Analysis

For final analysis, I can say that, to make a valid ContractAnd to make it enforceable by law, it must have the ingredients mentioned in section 10 of contract act 1872.