SlideShare a Scribd company logo
ESSENTIALS OF A
VALID CONTRACT
WHAT IS A CONTRACT?
According to Section 2(h) of The Indian Contract Act, 1872
An agreement enforceable by law is called as contract.
In simple words, Contract = Agreement + Enforceability
SECTION 10 OF THE INDIAN
CONTRACT ACT
All agreements are contracts if they are made by the
free consent of parties competent to contract, for a
lawful consideration and with a lawful object, and are
not hereby expressly declared to be void.
ESSENTIALS UNDER SECTION 10
• Agreement- In order to form a valid contract there should be lawful offer
by one party and lawful acceptance by the other.
• Free consent- Consent is said to be free when it is not caused by
coercion, undue influence, fraud, misrepresentation or mistake.
• Competency of Parties- Every person is competent to contract who is of
the age of majority, and who is of sound mind and is not disqualified
from contracting by any law. (Mohori Bibee v Dharmodas Ghose)
• Lawful consideration- It is referred to as ‘quid-pro-quo’ i.e. something in
return.
• Legal Object- Section 23 states that consideration or object is not lawful
if it is prohibited by law, or it is such as would defeat the provisions of
law, if it is fraudulent or involves injury to the person or property of
another or court regards it as immoral or opposed to public policy.
• The agreement entered into must not be which thelaw declares to be
either illegal or void.
OTHER ESSENTIALS
• Two Parties- One party making the offer and the other party
accepting it.
• Intention to create legal relationship- The parties must intent to
create legal obligations. (Balfour v. Balfour)
• Legal formalities- Legal formalities if any required for particular
agreement such as registration, writing, they must be followed.
• Certainty of meaning- The Agreement must be certain and not
vague or indefinite.
• Possibility of performance- The terms of the agreement should
be capable of being performed.
THANK YOU

More Related Content

Similar to Essentials of a valid Contract PPTs.pptx

Indian contract act 1872
Indian contract act 1872Indian contract act 1872
Indian contract act 1872
Piyush Jadoun
 
Contract
ContractContract
b.law 4.pptx
b.law 4.pptxb.law 4.pptx
b.law 4.pptx
NimraNoor36
 
Indian contract act
Indian contract actIndian contract act
Indian contract act
Mehul Rabari
 
Essentials of valid contract
Essentials of valid contractEssentials of valid contract
Essentials of valid contract
Aloshy cheriyan
 
Essentials of a valid contract
Essentials of a valid contractEssentials of a valid contract
Essentials of a valid contract
Sandeep Singh Saini
 
Contract
ContractContract
Contract
MEKUANINT ABERA
 
Indian contract act 1872
Indian contract act 1872Indian contract act 1872
Indian contract act 1872
rajesh25
 
08032024.....Contract Law ...........ppt
08032024.....Contract Law ...........ppt08032024.....Contract Law ...........ppt
08032024.....Contract Law ...........ppt
NidhiBhatnagar19
 
Business legal and Ethics
Business legal and EthicsBusiness legal and Ethics
Business legal and Ethics
Venu Pvk
 
Contract
Contract Contract
Contract
bhavikakerai
 
The indian contract act, 1872 for class
The  indian contract act,  1872 for classThe  indian contract act,  1872 for class
The indian contract act, 1872 for class
Jasdeep Sran
 
Law chp 1
Law chp 1Law chp 1
Law chp 1
sweetsnowiee7
 
Indian Contratc Act MIM
Indian Contratc Act  MIMIndian Contratc Act  MIM
Indian Contratc Act MIM
sathyaraj
 
22914162 the-indian-contract-act-1872
22914162 the-indian-contract-act-187222914162 the-indian-contract-act-1872
22914162 the-indian-contract-act-1872
Harshal Shirsath
 
17886416 business-law
17886416 business-law17886416 business-law
17886416 business-law
LALIT MAHATO
 
Mistakes of law attribution
Mistakes of law attributionMistakes of law attribution
Mistakes of law attribution
vimalkanth1990
 
Business Law
Business LawBusiness Law
Assignment 1
Assignment 1Assignment 1
Contract act notes
Contract act notesContract act notes
Contract act notes
reshmakurle
 

Similar to Essentials of a valid Contract PPTs.pptx (20)

Indian contract act 1872
Indian contract act 1872Indian contract act 1872
Indian contract act 1872
 
Contract
ContractContract
Contract
 
b.law 4.pptx
b.law 4.pptxb.law 4.pptx
b.law 4.pptx
 
Indian contract act
Indian contract actIndian contract act
Indian contract act
 
Essentials of valid contract
Essentials of valid contractEssentials of valid contract
Essentials of valid contract
 
Essentials of a valid contract
Essentials of a valid contractEssentials of a valid contract
Essentials of a valid contract
 
Contract
ContractContract
Contract
 
Indian contract act 1872
Indian contract act 1872Indian contract act 1872
Indian contract act 1872
 
08032024.....Contract Law ...........ppt
08032024.....Contract Law ...........ppt08032024.....Contract Law ...........ppt
08032024.....Contract Law ...........ppt
 
Business legal and Ethics
Business legal and EthicsBusiness legal and Ethics
Business legal and Ethics
 
Contract
Contract Contract
Contract
 
The indian contract act, 1872 for class
The  indian contract act,  1872 for classThe  indian contract act,  1872 for class
The indian contract act, 1872 for class
 
Law chp 1
Law chp 1Law chp 1
Law chp 1
 
Indian Contratc Act MIM
Indian Contratc Act  MIMIndian Contratc Act  MIM
Indian Contratc Act MIM
 
22914162 the-indian-contract-act-1872
22914162 the-indian-contract-act-187222914162 the-indian-contract-act-1872
22914162 the-indian-contract-act-1872
 
17886416 business-law
17886416 business-law17886416 business-law
17886416 business-law
 
Mistakes of law attribution
Mistakes of law attributionMistakes of law attribution
Mistakes of law attribution
 
Business Law
Business LawBusiness Law
Business Law
 
Assignment 1
Assignment 1Assignment 1
Assignment 1
 
Contract act notes
Contract act notesContract act notes
Contract act notes
 

Recently uploaded

Safeguarding Against Financial Crime: AML Compliance Regulations Demystified
Safeguarding Against Financial Crime: AML Compliance Regulations DemystifiedSafeguarding Against Financial Crime: AML Compliance Regulations Demystified
Safeguarding Against Financial Crime: AML Compliance Regulations Demystified
PROF. PAUL ALLIEU KAMARA
 
Sangyun Lee, 'Why Korea's Merger Control Occasionally Fails: A Public Choice ...
Sangyun Lee, 'Why Korea's Merger Control Occasionally Fails: A Public Choice ...Sangyun Lee, 'Why Korea's Merger Control Occasionally Fails: A Public Choice ...
Sangyun Lee, 'Why Korea's Merger Control Occasionally Fails: A Public Choice ...
Sangyun Lee
 
Corporate Governance : Scope and Legal Framework
Corporate Governance : Scope and Legal FrameworkCorporate Governance : Scope and Legal Framework
Corporate Governance : Scope and Legal Framework
devaki57
 
Receivership and liquidation Accounts Prof. Oyedokun.pptx
Receivership and liquidation Accounts Prof. Oyedokun.pptxReceivership and liquidation Accounts Prof. Oyedokun.pptx
Receivership and liquidation Accounts Prof. Oyedokun.pptx
Godwin Emmanuel Oyedokun MBA MSc PhD FCA FCTI FCNA CFE FFAR
 
Genocide in International Criminal Law.pptx
Genocide in International Criminal Law.pptxGenocide in International Criminal Law.pptx
Genocide in International Criminal Law.pptx
MasoudZamani13
 
Search Warrants for NH Law Enforcement Officers
Search Warrants for NH Law Enforcement OfficersSearch Warrants for NH Law Enforcement Officers
Search Warrants for NH Law Enforcement Officers
RichardTheberge
 
Presentation (1).pptx Human rights of LGBTQ people in India, constitutional a...
Presentation (1).pptx Human rights of LGBTQ people in India, constitutional a...Presentation (1).pptx Human rights of LGBTQ people in India, constitutional a...
Presentation (1).pptx Human rights of LGBTQ people in India, constitutional a...
SKshi
 
Pedal to the Court Understanding Your Rights after a Cycling Collision.pdf
Pedal to the Court Understanding Your Rights after a Cycling Collision.pdfPedal to the Court Understanding Your Rights after a Cycling Collision.pdf
Pedal to the Court Understanding Your Rights after a Cycling Collision.pdf
SunsetWestLegalGroup
 
PPT-Money Laundering - lecture 5.pptx ll
PPT-Money Laundering - lecture 5.pptx llPPT-Money Laundering - lecture 5.pptx ll
PPT-Money Laundering - lecture 5.pptx ll
MohammadZubair874462
 
The Future of Criminal Defense Lawyer in India.pdf
The Future of Criminal Defense Lawyer in India.pdfThe Future of Criminal Defense Lawyer in India.pdf
The Future of Criminal Defense Lawyer in India.pdf
veteranlegal
 
AN INTRODUCTION TO PUBLIC ADMINISTRATION.pptx
AN INTRODUCTION TO PUBLIC ADMINISTRATION.pptxAN INTRODUCTION TO PUBLIC ADMINISTRATION.pptx
AN INTRODUCTION TO PUBLIC ADMINISTRATION.pptx
schubergbestrong
 
It's the Law: Recent Court and Administrative Decisions of Interest
It's the Law: Recent Court and Administrative Decisions of InterestIt's the Law: Recent Court and Administrative Decisions of Interest
It's the Law: Recent Court and Administrative Decisions of Interest
Parsons Behle & Latimer
 
V.-SENTHIL-BALAJI-SLP-C-8939-8940-2023-SC-Judgment-07-August-2023.pdf
V.-SENTHIL-BALAJI-SLP-C-8939-8940-2023-SC-Judgment-07-August-2023.pdfV.-SENTHIL-BALAJI-SLP-C-8939-8940-2023-SC-Judgment-07-August-2023.pdf
V.-SENTHIL-BALAJI-SLP-C-8939-8940-2023-SC-Judgment-07-August-2023.pdf
bhavenpr
 
Business Laws Sunita saha
Business Laws Sunita sahaBusiness Laws Sunita saha
Business Laws Sunita saha
sunitasaha5
 
San Remo Manual on International Law Applicable to Armed Conflict at Sea
San Remo Manual on International Law Applicable to Armed Conflict at SeaSan Remo Manual on International Law Applicable to Armed Conflict at Sea
San Remo Manual on International Law Applicable to Armed Conflict at Sea
Justin Ordoyo
 
17-03 2022 -full agreement full version .pdf
17-03 2022 -full agreement full version .pdf17-03 2022 -full agreement full version .pdf
17-03 2022 -full agreement full version .pdf
ssuser0dfed9
 
一比一原版(Lincoln毕业证)新西兰林肯大学毕业证如何办理
一比一原版(Lincoln毕业证)新西兰林肯大学毕业证如何办理一比一原版(Lincoln毕业证)新西兰林肯大学毕业证如何办理
一比一原版(Lincoln毕业证)新西兰林肯大学毕业证如何办理
gjsma0ep
 
快速办理(SCU毕业证书)澳洲南十字星大学毕业证文凭证书一模一样
快速办理(SCU毕业证书)澳洲南十字星大学毕业证文凭证书一模一样快速办理(SCU毕业证书)澳洲南十字星大学毕业证文凭证书一模一样
快速办理(SCU毕业证书)澳洲南十字星大学毕业证文凭证书一模一样
15e6o6u
 
Integrating Advocacy and Legal Tactics to Tackle Online Consumer Complaints
Integrating Advocacy and Legal Tactics to Tackle Online Consumer ComplaintsIntegrating Advocacy and Legal Tactics to Tackle Online Consumer Complaints
Integrating Advocacy and Legal Tactics to Tackle Online Consumer Complaints
seoglobal20
 
Should AI hold Intellectual Property Rights?
Should AI hold Intellectual Property Rights?Should AI hold Intellectual Property Rights?
Should AI hold Intellectual Property Rights?
RoseZubler1
 

Recently uploaded (20)

Safeguarding Against Financial Crime: AML Compliance Regulations Demystified
Safeguarding Against Financial Crime: AML Compliance Regulations DemystifiedSafeguarding Against Financial Crime: AML Compliance Regulations Demystified
Safeguarding Against Financial Crime: AML Compliance Regulations Demystified
 
Sangyun Lee, 'Why Korea's Merger Control Occasionally Fails: A Public Choice ...
Sangyun Lee, 'Why Korea's Merger Control Occasionally Fails: A Public Choice ...Sangyun Lee, 'Why Korea's Merger Control Occasionally Fails: A Public Choice ...
Sangyun Lee, 'Why Korea's Merger Control Occasionally Fails: A Public Choice ...
 
Corporate Governance : Scope and Legal Framework
Corporate Governance : Scope and Legal FrameworkCorporate Governance : Scope and Legal Framework
Corporate Governance : Scope and Legal Framework
 
Receivership and liquidation Accounts Prof. Oyedokun.pptx
Receivership and liquidation Accounts Prof. Oyedokun.pptxReceivership and liquidation Accounts Prof. Oyedokun.pptx
Receivership and liquidation Accounts Prof. Oyedokun.pptx
 
Genocide in International Criminal Law.pptx
Genocide in International Criminal Law.pptxGenocide in International Criminal Law.pptx
Genocide in International Criminal Law.pptx
 
Search Warrants for NH Law Enforcement Officers
Search Warrants for NH Law Enforcement OfficersSearch Warrants for NH Law Enforcement Officers
Search Warrants for NH Law Enforcement Officers
 
Presentation (1).pptx Human rights of LGBTQ people in India, constitutional a...
Presentation (1).pptx Human rights of LGBTQ people in India, constitutional a...Presentation (1).pptx Human rights of LGBTQ people in India, constitutional a...
Presentation (1).pptx Human rights of LGBTQ people in India, constitutional a...
 
Pedal to the Court Understanding Your Rights after a Cycling Collision.pdf
Pedal to the Court Understanding Your Rights after a Cycling Collision.pdfPedal to the Court Understanding Your Rights after a Cycling Collision.pdf
Pedal to the Court Understanding Your Rights after a Cycling Collision.pdf
 
PPT-Money Laundering - lecture 5.pptx ll
PPT-Money Laundering - lecture 5.pptx llPPT-Money Laundering - lecture 5.pptx ll
PPT-Money Laundering - lecture 5.pptx ll
 
The Future of Criminal Defense Lawyer in India.pdf
The Future of Criminal Defense Lawyer in India.pdfThe Future of Criminal Defense Lawyer in India.pdf
The Future of Criminal Defense Lawyer in India.pdf
 
AN INTRODUCTION TO PUBLIC ADMINISTRATION.pptx
AN INTRODUCTION TO PUBLIC ADMINISTRATION.pptxAN INTRODUCTION TO PUBLIC ADMINISTRATION.pptx
AN INTRODUCTION TO PUBLIC ADMINISTRATION.pptx
 
It's the Law: Recent Court and Administrative Decisions of Interest
It's the Law: Recent Court and Administrative Decisions of InterestIt's the Law: Recent Court and Administrative Decisions of Interest
It's the Law: Recent Court and Administrative Decisions of Interest
 
V.-SENTHIL-BALAJI-SLP-C-8939-8940-2023-SC-Judgment-07-August-2023.pdf
V.-SENTHIL-BALAJI-SLP-C-8939-8940-2023-SC-Judgment-07-August-2023.pdfV.-SENTHIL-BALAJI-SLP-C-8939-8940-2023-SC-Judgment-07-August-2023.pdf
V.-SENTHIL-BALAJI-SLP-C-8939-8940-2023-SC-Judgment-07-August-2023.pdf
 
Business Laws Sunita saha
Business Laws Sunita sahaBusiness Laws Sunita saha
Business Laws Sunita saha
 
San Remo Manual on International Law Applicable to Armed Conflict at Sea
San Remo Manual on International Law Applicable to Armed Conflict at SeaSan Remo Manual on International Law Applicable to Armed Conflict at Sea
San Remo Manual on International Law Applicable to Armed Conflict at Sea
 
17-03 2022 -full agreement full version .pdf
17-03 2022 -full agreement full version .pdf17-03 2022 -full agreement full version .pdf
17-03 2022 -full agreement full version .pdf
 
一比一原版(Lincoln毕业证)新西兰林肯大学毕业证如何办理
一比一原版(Lincoln毕业证)新西兰林肯大学毕业证如何办理一比一原版(Lincoln毕业证)新西兰林肯大学毕业证如何办理
一比一原版(Lincoln毕业证)新西兰林肯大学毕业证如何办理
 
快速办理(SCU毕业证书)澳洲南十字星大学毕业证文凭证书一模一样
快速办理(SCU毕业证书)澳洲南十字星大学毕业证文凭证书一模一样快速办理(SCU毕业证书)澳洲南十字星大学毕业证文凭证书一模一样
快速办理(SCU毕业证书)澳洲南十字星大学毕业证文凭证书一模一样
 
Integrating Advocacy and Legal Tactics to Tackle Online Consumer Complaints
Integrating Advocacy and Legal Tactics to Tackle Online Consumer ComplaintsIntegrating Advocacy and Legal Tactics to Tackle Online Consumer Complaints
Integrating Advocacy and Legal Tactics to Tackle Online Consumer Complaints
 
Should AI hold Intellectual Property Rights?
Should AI hold Intellectual Property Rights?Should AI hold Intellectual Property Rights?
Should AI hold Intellectual Property Rights?
 

Essentials of a valid Contract PPTs.pptx

  • 2. WHAT IS A CONTRACT? According to Section 2(h) of The Indian Contract Act, 1872 An agreement enforceable by law is called as contract. In simple words, Contract = Agreement + Enforceability
  • 3.
  • 4. SECTION 10 OF THE INDIAN CONTRACT ACT All agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void.
  • 5. ESSENTIALS UNDER SECTION 10 • Agreement- In order to form a valid contract there should be lawful offer by one party and lawful acceptance by the other. • Free consent- Consent is said to be free when it is not caused by coercion, undue influence, fraud, misrepresentation or mistake. • Competency of Parties- Every person is competent to contract who is of the age of majority, and who is of sound mind and is not disqualified from contracting by any law. (Mohori Bibee v Dharmodas Ghose) • Lawful consideration- It is referred to as ‘quid-pro-quo’ i.e. something in return. • Legal Object- Section 23 states that consideration or object is not lawful if it is prohibited by law, or it is such as would defeat the provisions of law, if it is fraudulent or involves injury to the person or property of another or court regards it as immoral or opposed to public policy. • The agreement entered into must not be which thelaw declares to be either illegal or void.
  • 6. OTHER ESSENTIALS • Two Parties- One party making the offer and the other party accepting it. • Intention to create legal relationship- The parties must intent to create legal obligations. (Balfour v. Balfour) • Legal formalities- Legal formalities if any required for particular agreement such as registration, writing, they must be followed. • Certainty of meaning- The Agreement must be certain and not vague or indefinite. • Possibility of performance- The terms of the agreement should be capable of being performed.