Question

What is a contract .? What are the essentials of a valid contract

Answer 1

Answer:

Contract:- Contract defines an agreement that is enforceable by law .( sec 2(h) )

Contract includes two essential s mostly -

1. Agreement
2. Enforcement by law

Agreement refers to the promise between two or more parties to make contract . There are two parties in every contract

1. promiser( who makes promise )

2 promisee ( to whom promise made)

Enforement by law means legally binding agreement .

ESSENTIAL OF VALID CONTRACT -

1. Two parties
2. Legally enforceable
3. Offer and acceptence
4. Consideration
5. free consent
6. lawful object
7. not to be void

1) There must be two parties in every contract .one is who make contract and other for whom contract is made

2.An agreements that is legally enforceable called contract .So it must be legal contract

3.There must be an offer and acceptance under contract

offer when accepted makes contract

offeror is the person who makes offer and offeree who accept it .

4.No consideration no contract . Contract include consideration also .which means something in return.

So it must be something in return if contract made.

5.Free consent of partners makes a contract also .

6.The object must lawful . otherwise offeree had right to sue against offeror fir making unlawful offer to him ..If offeror makes valid offer than he makes contract otherwise contracts made my offeror treated as unlawful

Answer 2

Answer:

Introduction

A contract is a legally binding aggriment

that exist between two or more parties to do or obtain from doing something

According to section 2(h) of the Indian Contract Act,1872, ‘An agreement which is enforceable by law is a Contract’.

Pollock- “Every agreement and promise enforceable by law is a contract”.

https://lawsikho.com/course/diploma-advanced-contract-drafting-negotiation-dispute-resolution

Salmond- “A contract is an agreement creating and defining obligation between two or

or more persons by which rights are acquired by one or more to acts or

forbearance on the part of others”.

Anson- “The law of contract is that branch of law which determine the circumstances

in which a promise shall be legally binding on the person making it’.

Now after examining the definitions of contract we can say that-

Contract = Agreement + Enforceability

Illustration- There is an agreement between A and B that A will construct a house for B, and B will pay Rs. 10 lakhs to A.The agreement between A and B is a contract because it is enforceable by law.

Essential elements of a valid Contract

Offer and Acceptance

Intention to create a Legal relationship

Lawful Consideration

Competent parties

Free consent

Lawful Object

Not expressly declared void

Offer and Acceptance: There must be a lawful offer and acceptance for the formation of an agreement. The adjective ‘lawful’ implies that the offer and acceptance must satisfy the requirements of the contract act in relation thereto. The offer or proposal is defined under section 2(a) of the Contract Act. section 2(b) of the Act provides that when an offer is accepted then it becomes a promise.

Case laws

Felthouse v. Bindley– In this case, it was held that “An offer cannot prescribe silence

mode of acceptance”.

Carlil v. Carbolic Smoke Ball Co. – In this case, a medical firm carbolic smoke ball company advertised that any person caught influenza after using the medicine of the company (viz. Carbolic smoke ball), for a specified period, would be 100 pounds. Mrs. C, after using the medicine (as prescribed by the company) nevertheless caught influenza. It was held that she was entitled to recover 100 pounds because the Company’s advertisement was something more than an invitation to transact business.

Lalman Shukla v Gauri Dutt – In this case, it was held that ‘The mere knowledge of an offer does not imply acceptance by the offeree’.

Intention to create a legal relationship: There must be a clear intention among the parties that the agreement should be attached by legal consequences and create a legal obligation.

Agreements of a social or domestic nature do not contemplate a legal relationship, and as such, they do not give rise to a contract.

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