Question

Discuss the basic elements of a valid contract.

Answer 1

Contract is аn оffiсiаl аgrееmеnt. It соuld bе writtеn оr even be in oral. Contracts саn bе written by using fоrmаl or informal tеrmѕ, оr entirely vеrbаl оr ѕроkеn. It iѕ a рrоmiѕе mаdе bеtwееn twо or more раrtiеѕ thаt which allow thе courts tо make judgement. A contract has six important еlеmеntѕ ѕо that it will bе valid which iѕ offer, acceptance, соnѕidеrаtiоn, intеntiоn tо create legal rеlаtiоn, сеrtаintу and capacity. If thе mаin elements аrе nоt in соntrасt, it would bе аn invalid соntrасt. 

These are 
1. Offеr 
2. Acceptance
3. Cоnѕidеrаtiоn
4.Intеntiоn to Create Lеgаl Relations
5. Certainty 
6. Cарасitу 

Answer 2

Contract is an official agreement. It could be written or even be in oral. Contracts can be written by using formal or informal terms, or entirely verbal or spoken. It is a promise made between two or more parties that which allow the courts to make judgement. A contract has six important elements so that it will be valid which is offer, acceptance, consideration, intention to create legal relation, certainty and capacity. If the main elements are not in contract, it would be an invalid contract.


1.Offer

The first element in a valid contract would be offer. An offer or a promise or an agreement needs to be in contract because if there is no offer than there will be no contract. In the Contracts Act, 1950, the first elements in a contract would be offer. It is one of the elements to make sure that the contract is legally valid or acceptable. In a contract, it is very important that a party would make an offer. There is a difference of offer between an advertisement and an option. 


2.Acceptance

After having an offer in the contract, there should be acceptance. For a contract to be made there should be acceptance from the other party or person. When the other party is clear with the offer, there would make an acceptance once they are clear with the rules and regulations being offer in the contract. There will be no contract if the parties are still negotiating or discussing and have not made accept the offer

Consideration

Consideration is also a very important element in the contract. Consideration in a contract would mean the other person would be giving back something in return. It would be consider as an exchange which would be made between the promisee and promissor. There should be consideration in a contract so that it would be legally valid


.4 Intention to Create Legal Relations

It is essential to have this element in a contract. It is a necessity of the intention to create legal relations although the Contracts Act 1950 is silent on the intention to create legal relations as one of the requirements of a valid contract. This element would have an agreement which is not a contract in the strict sense unless it is the common intention of the parties that it should be legally enforceable. If there is no intention to create legal relations in a contract, the contract could be subject to a lawsuit.

5 Certainty

Another main element in a contract would be certainty. The terms and regulations being made in a contract should be stated clearly and understood by the parties of the contract. If the agreement is not certain, it would be no longer valid. For example, if the guest wants to stay in a hotel, , the guest needs to inform how many days he or she is staying at the hotel, the type of room, and also the date when he or she are going stay and the number of days he or she is staying.

6 Capacity

Capacity in a contract is the parties to the contract must have the legal capacity to do so. 18 years old is stated as the age of a major. Minors who are people below the age of eighteen have no capacity to enter into contracts. Therefore, insane people or people with unsound minds also cannot enter into any valid contracts. For example, a person who is at the age of sixteen years old could not stay at a hotel