What Are The Essential Elements of Contract? | Indian Contract Act, 1872 | The National TV



The contract is explained in Section 2(h) of the Indian Contract Act, 1872 as an agreement enforceable by Law. There are certain essential elements that are required to be fulfilled for a valid contract.



Essentials of Contract -


1. Agreement The parties must form an agreement among them through offer and acceptance. The agreement can be written or oral.


2. Free Consent Section 13 of the Indian Contract Act, 1872 defines consent as the parties to contract are agreed upon the agreement with the same sense. Free consent is explained under Section 14 of Indian Contract Act as Consent will be considered as free if there is no kind of Coercion (Sec 15), undue influence (Sec 16), fraud (Sec 17), Misrepresentation (Sec 18) and Mistake ( Sec 19), Mistake (Sec 20,21,22) and If it does happen it is a voidable contract. Ranganayakamma v. Alwar Selti In this case, the widow was forced to adopt the boy otherwise she won't be allowed to proceed with the cremation of her husband's dead body. The Court held that the adoption was invalid as her consent wasn't free and was obtained by coercion.


3. Competency of parties Section 11 of the Indian Contract Act states that only those persons are competent to contract who have attained the age of majority and is having a sound mind and isn't disqualified from contracting by any law. Mohori Bibee v. Dharmodas Ghose In this case, the Court held that the minor isn't competent to contract and another party to the contract can't ask the minor to repay the loan or to perform the duties under the contract.


4. Lawful Consideration and object Section 23 of the Indian Contract Act states that consideration and object of the agreement should be lawful.

The agreements are unlawful -

a. If it is forbidden by law.

b. If it is against the 5ye provision of any law.

c. If it is fraudulent.

d. If it harms any person or property.

e. If it is immoral or against the public policy


5. Legal relationship Parties must have the intention to form a legal relationship for the contract. Parties are well versed that if any party is not performing his part of the contract then he would be liable for breach of contract.


6. Certainty and Possibility of performance Contract should be certain and conditions should be possible to perform. If there is any agreement to perform the impossible act then the contract can't be enforced. In such cases, the Doctrine of Frustration (Sec 56) will be applied. It basically means the performance was possible at the time of contract but later on performance isn't possible. The legal maxim 'Lex neminem cogit ad vana seu impossiblia' means the law can't compel the party to do what they can't possibly perform.






Read More Latest Bollywood Movie Reviews & News

Read More Sports News, Cricket News

Read More Wonderful Articles on Life, Health and more

Read More Latest Mobile, Laptop News & Review

Leave a Reply