Business Studies, asked by Anonymous, 4 days ago

define the defination of contract and discuss necessary features of a valid contract??
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Answers

Answered by renu1982rawat
1

Answer:

A valid contract is an agreement, which is binding and enforceable. In a valid contract, all the parties are legally bound to perform the contract. The Indian Contract Act, 1872 defines and lists the essentials of a valid contract through interpretation through various judgments of the Indian judiciary.

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Answered by hotelcalifornia
0

A contract is an agreement between two or more parties that is enforceable by law.

Explanation:

A contract consists of two major elements:

1. Agreement

2. Enforceability by law

  • Elements of a valid contract

1. Offer and acceptance

In order to create a valid contract, there must be a lawful offer and acceptance among parties.

2. Creating legal relations

The contract must be created with the view of creating legal relations. In case of failure of promise, one would be answerable in law.

3. Lawful consideration

For an agreement to be as valid as a contract, the agreement must be supported by consideration. Gratuitous promises are not considerable.

4. Capacity of parties to contract

The parties must be capable of entering the contract, that is, the person must have a sound mind and be a major.

5. Free consent

For a contract, it is necessary that there must be free and genuine consent of parties.

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