Essential elements of a valid contract

The agreement is unlawful as the object is unlawful. If not, the acceptance is viewed as a rejection and counteroffer.

When the complaining party provides proof that all of these elements occurred, that party meets its burden of making a prima facie case that a contract existed. Capacity to Contract If an agreement is entered between parties who are competent enough to contract, then the agreement becomes a contract.

Elements of a Contract

Essential elements of a valid contract 1. Akbar thinks he is purchasing Maruthi Zen. Receipt Rule — When an acceptance is sent by fax, it is deemed to be valid when the message is received, even if the offeror does not in fact read the fax immediately.

Thus, i an arbitration agreement must be in writing as per the Arbitration and Conciliation Act, ; ii an agreement for a sale of immovable property must be in writing and registered under the Transfer of Property Act, before they can be legally enforced.

Agreements between husband and wife also lack the intention to create legal relationship and thus do not result in contracts.

What are the 4 essential elements of a contract?

Free consent of all the parties to an agreement is another essential element of a valid contract. The agreement may be oral or in writing. The parties to an agreement must be competent to contract; otherwise it cannot be enforced by a court of law.

Writing is essential in order to effect a sale, lease, mortgage, gift of immovable property etc. That is, the parties entering into the contract must intend to create legal relations and must understand that the agreement can be enforced by law.

What Are the Essential Elements of a Valid Contract?

This means that there must be consensus ad idem i. The other party i. If the act is impossible in itself, physically or legally, the agreement cannot be enforced at law.

Similarly, certain other Acts also require writing or and registration to make the agreement enforceable by law which must be observed.

It is also important to note that the offeror cannot take silence as a form of acceptance. In general, there is no requirement that a contract be in writing. Acceptance may be expressed through words, deeds or performance as called for in the contract.

In order to be competent to contract the parties must be of the age of majority and of sound mind and must not be disqualified from contracting by any law to which they are subject Sec.

Any contracts that are made by persons who are lacking in legal capacity are voidable: It must not be illegal or immoral or opposed to public policy. Certainty and possibility of performance: Essential elements of a valid contract Essential Elements of a Valid Contract The following are the essential elements of a valid contract.

The offer when accepted becomes agreement.

What Are the Four Elements of a Contract?

It must be possible to ascertain the meaning of the agreement, for otherwise, it cannot be enforced. Normally, in social agreements there is no intention to go to the court of law but in commercial agreements it is presumed that there is an intention to go to the court.

Consideration need not be in cash or in kind. If the parties have agreed on a contract that contains any promise, not possible to be performed in real life, then the agreement will not be considered as valid.

The essential elements of a valid contract may be summed up as follows: Comment Possibility of performance The agreement must be capable of being performed. Certainty and possibility of performance. It must not be fraudulent, unlawful, immoral or opposed to public policy.

Besides, the consideration must also be lawful. The offer when accepted becomes an agreement. Example Amar agrees to sell 5 tons of coconut oil to Akbar at whatever price Akbar may pay. A proposal when accepted becomes a promise or agreement.

According to the Indian Contract Act, a contract may be oral or in writing. An exception to this rule is when a contract is executed in a specific form called a "deed"in which case the recipient may not be required to give consideration to the other party.ppt on essential elements of a valid contract Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising.

If you continue browsing the site, you agree to the use of cookies on this website. What are the requirements for a valid contract - Answers.

Ten Essential elements of a valid contract – Essay

The complaining party must prove four elements to show that a contract existed: 1. Offer - One then the acceptance does not have to mirror the terms of the offer for a valid contract to exist, unless: (a) the terms of the acceptance. Essential Elements of a Valid Contract - Free download as Word Doc .doc), PDF File .pdf), Text File .txt) or read online for free.5/5(5).

The four elements of a contract are an offer, an acceptance, a consideration and an intention of legal consequences. An agreement has to contain all four to be regarded as a contract.

Essential Elements of a Valid Contract

It ceases to be legally binding if it drops a single element. For a contract to be valid, it needs to have a clearly. The essential elements of a valid contract include the following: offer, acceptance, consideration, intention to create legal relations, certainty and capacity. All of these must be in place for it to be considered legally valid.

The offer part of a contract is the promise or agreement between two.

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Essential elements of a valid contract
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