Sunday, 18 May 2014

Discus the essentials of a valid contract.

The essentials of a valid contract are:


  • Intention with which the contract is created: The intention to create a contract should be clear otherwise, it will be treated as invalid.
  • Offer and acceptance: A contract ceases to exist without an offer. An acceptance will be deemed to be complete when both the parties are in conscience with each other.
  • Consideration: A consideration may consist sometimes in the doing of a requested act, and sometimes in the making of a promise by the offeree. Consideration is not required for a promise to compensate, wholly or in part, a person who has already voluntarily done something for the promisor or something, which the promisor was legally compellable to do. It is also not required for a written and signed promise by the debtor (or his duly authorized agent) to pay a time-barred debt to the creditor.
  • Capacity to enter into contract: A person can enter into a contract only after he has attained an age of majority and is not debarred by law for doing any unlawful activity.
  • Free consent of the parties: When consent is attained by fraud or misrepresentation, the agreement can become void at the consent of the party who was forced to enter into such an agreement.
  • Lawful object of the agreement: If the consideration or an object is unlawful, the agreement will be treated as void.

No comments:

Post a Comment