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ESSENTIAL ELEMENTS OF A VALID CONTRACT
1. Introduction:
Contract is simply an agreement between two or more persons to do some particular thing. It ascertains the circumstances in which promises made by the parties to a contract shall be legally binding on them.
2. Meaning:
Contract means "a legally binding agreement."
3. Definations:
i. Salmond:
Contract is " an agreement between two or more persons which creates an obligation.
ii. Black's Law Dictionary:
Contract is "an agreement between two or more persons which creates an obligation.
4. Essentials Of A Valid Contract:
i. Parties:
According to Contract Act at least two parties are competent to enter into contract, viz the proposer and the acceptor.
ii. Agreement:
There must be an agreement between the proposer and acceptor.
iii. Legal Relationship:
Intention of parties must create legal relationship.
iv. Enforceability:
Agreement becomes a contract when it is enforceagble at law.
v. Free Consent:
It is necessary for a valid contract that the consent of the parties to the contract must be free.
vi. Lawful consideration:
Consideration is something in return. An agreemtn with consideration is invalid.
vii. Lawful Object:
The object of an agreement must not be illegal immoral or opposed to public policy.
viii. Capacity of Parties:
According to Contract Act All agreements are constracts if they are made by the free consent of the parties competent to contract.
ix. Certainty:
Contract must not be uncertain, vague, or indefinite. when an agreement is vague, it shall be unenforceable.
x. Posssibility of Performance:
According to contract Act, if the act is legally or physically impossible to perform the agreement cannot be enforced by law.
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