Essential of valid Contract under contract act, 1872 of pakistan by waqas balouch

2. Presentation
By
Waqas Balouch

3. Topic
Essential of valid Contract

4. INTRODUCTION
Contract is an agreement
between
two parties
Where legal right are created , Such right are civil in nature .

5. Relevant Provision ‘s
• Section 2(h) of Contract Act, 1872
• Section 2(e) Contract Act, 1872
• Section 10 of Contract Act 1872

6. Cross Reference
• Section 11 to 30 of contract Act 1872
• Indian Contract Act 1872
• Specific relief Act 1877

7. Meaning of term contract
Literal Meaning :-
According to oxford dictionary
A formal agreement
Legal Meaning:-
According to Black’s law dictionary
11th Edition
An agreement between two are more parties creating
Obligation that are enforceable or recognizable by law
9th Edition page # 365

8. Salutatory definition of term contract
U/S 2(h) of Contract Act, 1872
An agreement enforceable by law

9. Juristic view
According to Pollack
An agreement enforceable at law
According to Salmond
Contract is an agreement creation and
defining obligation between the parties

10. Essential of valid contract
U/S 10 of contract Act 1872
• Agreement
• Competency of parties
• Free consent
• Lawful object
• Lawful consideration
• Not to be void

11. Agreement as essential of valid contract
Agreement = Offer + Acceptance
Maxim
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

12. 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.

13. 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.

14. 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

15. Lawful object
This means that the object of entering an agreement should
not be illegal Or fraudulent or immoral against public policy.
Illustration
‘A’ promises to pay ‘B’ Rs. 5 thousand of ‘B’ beats ‘C’.
This agreement Is illegal as its object is unlawful.

16. 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

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