The Indian Contract Act 1971

1. 1Dr Siddharth Shimpi
13/08/2015

2.  According to Section 10, “All agreements are
contracts if they are made by the free
consent of the parties competent to
contract, for a lawful consideration and
with a lawful object and are not hereby
expressly declared to be void.”
2Dr Siddharth Shimpi 13/08/2015

3.  Proper offer and acceptance
 Intention to create legal relationship
 Free consent
 Capacity of parties
 Lawful consideration
 Lawful object
 Agreement not expressly declared void
 Certainty of meaning
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4.  Possibility of performance
 Legal formalities
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5.  Two parties
 Valid offer:
a. Intend to create legal relations
b. Terms must be certain and unambiguous
c. Must be communicated to the person to whom it is
made
 Valid Acceptance:
a. Absolute and unconditional
b. Prescribed manner
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6.  In commercial and business agreements, the
usual presumption is that the parties intend
to create legal relationship unless otherwise
agreed upon
 Social or domestic agreements – not intend
to create legal relationship
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7.  Consent is said to be free when it is not
caused by
1. Coercion
2. Undue influence
3. Fraud
4. Misrepresentation
5. Mistake
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8.  Person must be major
 Must be of sound mind
 Must not be declared disqualified from
contracting by any law to which he is subject
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9.  Must be supported by lawful consideration
 E.g.: No injury to person or property
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10.  Agreement must be lawful
 E.g.: No immoral or oppose to public policy
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11. 1. Agreement in restraint of marriage
2. Agreement in restraint of legal proceedings
3. Agreement in restraint of trade and
4. Agreement in restraint of wager
have been expressly declared void.
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12.  Must be certain
 Unambiguous
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13.  Must be such as are capable of performance
 Agreement to do an impossible act is void
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14.  Must comply with the necessary formalities
as to writing, registration, stamping, etc.
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