This document outlines the essential elements of a valid contract: proper offer and acceptance between parties, intention to create a legal relationship, free consent without coercion or undue influence, capacity of parties to understand the contract, and lawful consideration. It defines each element, with proper offer and acceptance requiring a lawful offer by one party and acceptance by the other. Free consent means agreement without coercion, undue influence, fraud, misrepresentation, or mistake. The parties must also have capacity to contract without being minors, of unsound mind, or otherwise legally disqualified. Consideration represents something of value exchanged between the parties.

2. CONTENTS
• Essential Elements of Contract
*Proper Offer & Acceptance
*Intention to Create Legal
Relationship
*Free Consent
*Capacity of Parties
*Lawful Consideration

3. Essentials of a Contract
-According to Sec 10,
"all agreements are contract if they are made by 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."

4. Essential
elements
of a
contract
proper
offer &
acceptance
legal
relationshi
-p
free
consent
capacity
of
parties
lawful
consideration

5. Proper Offer & Acceptance
In order to create a valid contract, there must
be a 'lawful offer' by one party and 'lawful
acceptance' of the same by the other party.

6. Proper Offer & Acceptance

7. Intention to Create Legal Relationship
• In case, there is no such intention to create a legal
relationship on the part of parties, then there is no
contract.
• Agreements of social or domestic nature do not make
legal relations.

8. Free Consent
• 'Consent' means the parties must have agreed upon the same thing
in the same sense.
• According to Section 14, Consent is said to be free when it is not
caused by-
(1) Coercion, or (2) Undue influence, or
(3) Fraud, or
(4) Mis-representation, or
(5) Mistake.
An agreement should be made
by the free consent of the parties.

9. Capacity of Parties
• The parties of an agreement must be competent. If either of the
parties does not have the capacity to understand the contract, then
the contract is not valid.
• The following persons are incompetent to contract.
(a) Minors, (b) Persons of unsound mind,
and
(c) persons disqualified by law

10. Lawful Consideration
• In the words of Pollock, "Consideration is the price for which
the promise of the another is brought."
• Consideration is known as quid pro-quo or something in
return.

11. References
•Wikipedia
•Business Law by
P.C.Tulsian
•Lecture Notes