COURSE INSTRUCTOR: SABA ALAM
SUBJECT: LAW OF CONTRACT
ESSENTIALS OF VALID CONTRACT
INTRODUCTION:
MEANING:
“A contract is an agreement made between two or more parties which the law will enforce.”
DEFINITION:
According to section 2(h) of the Contract Act, 1872. “An agreement enforceable by law is a
contract.
According to SALMOND, a contract is “An agreement creating and defining obligations
between the parties”
ESSENTIAL ELEMENTS OF A VALID CONTRACT:
According to section 10, “All agreements are contracts if they are made by the free consent of
the parties competent to contract, for a lawful consideration and with a lawful object and not here
by expressly declared to be void”
In order to become a contract an agreement must have the following essential elements, they are
follows:
1. Offer and Acceptance:
To constitute a contract there must be an offer and an acceptance of that offer.
The offer and acceptance should relate to same thing in the same sense.
There must be two or more persons to an agreement because one person cannot enter into an
agreement with himself.
2. Free and Consent:
The consent of the parties to the agreement must be free and genuine. Free consent is said to be
absent, if the agreement is induced by;
a. coercion,
b. undue influence,
c. fraud,
SUBJECT: LAW OF CONTRACT
ESSENTIALS OF VALID CONTRACT
INTRODUCTION:
MEANING:
“A contract is an agreement made between two or more parties which the law will enforce.”
DEFINITION:
According to section 2(h) of the Contract Act, 1872. “An agreement enforceable by law is a
contract.
According to SALMOND, a contract is “An agreement creating and defining obligations
between the parties”
ESSENTIAL ELEMENTS OF A VALID CONTRACT:
According to section 10, “All agreements are contracts if they are made by the free consent of
the parties competent to contract, for a lawful consideration and with a lawful object and not here
by expressly declared to be void”
In order to become a contract an agreement must have the following essential elements, they are
follows:
1. Offer and Acceptance:
To constitute a contract there must be an offer and an acceptance of that offer.
The offer and acceptance should relate to same thing in the same sense.
There must be two or more persons to an agreement because one person cannot enter into an
agreement with himself.
2. Free and Consent:
The consent of the parties to the agreement must be free and genuine. Free consent is said to be
absent, if the agreement is induced by;
a. coercion,
b. undue influence,
c. fraud,
