What is a contract? and its essential elements

2. A contract is basically an agreement
between two parties creating a legal
obligation for both of them to perform
specific acts.
Definition of
Contract
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The Contract is Consist of Two Essential
Elements –
1.An Agreement
2.Enforceable by Law
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4. The term “agreement” given in Section 2(e)
of the contract act is defined as
“every promise & every set of promise
forming the consideration for each other”.
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5. An Agreement to become a contract must
give rise to a legal obligation which means
a duty enforceable by Law.
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6. Essential Elements of a Contr
1)Proper offer & Proper Acceptance
2)Lawful Consideration & Lawful Object
3)Capacity to Contract
4)Free Consent
5)Agreement not declared void or illegal
6)Certainty of Meaning
7)Possibility of performance of an agreement
8)Necessary legal formalities
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7. 1) Intention to create legal relationship :
The parties have the intention to
create an legal obligation between them
through the form of offer and
acceptance.
2) Lawful Consideration :
Lawful object is an essential element of a
valid contract Consideration is a technical
word meaning thereby “QUID PRO QUO”
means Something in return.
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8. 3) Capacity to Contract:
The parties to a contract must have
capacity (legal ability) to make valid
contract.
o The age of majority Acc. to law
o A person is a sound mind
o Not disqualified by the law
4) Free Consent:
The Consent of the parties must be genuine or
true.
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9. 5) The agreement not declared void or
illegal:
The agreement must not be one which was
the law declare to be either void or
illegal.
6) Certainty of Meaning :
The agreement must be certain & not vague
(unclear) or indefinite.
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10. 7) Possibility of performance of an
agreement:
The term of agreement should be capable
of performance. An Agreement to do an
act impossible in itself cannot be
enforced.
8) Necessary legal formalities:
A particular type of contract require by law
to be in writing & registered.
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11. THANKYOU
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