Business Law
Indian Contract Act, 1872
What is contract? What are the elements of a Contract?
Or
“All contracts are agreement all agreements are not contract” –
Explain.
Generally, Contract means an agreement, which creates some
obligation between two parties, but according to Indian contract act
1872, an Agreement enforceable by law is called contract 2(h).
From, the definition of contract, we know that a contract
should have an agreement but it does not mean that all agreements
are a contract, because an agreement to be a contract, should have
some elements or conditions, after fulfilling these condition we can
say that the agreement now become a contract.
➢ The elements of contract.
• Offer and acceptance: To be a contract there must be an lawful
offer by a party and accept the offer by the other party. Here
lawful means the offer must be comes under the law or Indian
contract act, 1872.
• Intention to create legal relationship: It means the agreement
must have the legal intention. For example an agreement to
playing hide and seek is not a legal intention full object, but an
agreement to sale goods is a contract.
• Capacity of parties: For create an agreement, both the party
must be a mature and rational human being. Below 18 years age,
lunacy, idiocy, drunker, mad, mentally disable, the person comes
under these type does not make an agreement, if so, then it does
not enforced by law.
Indian Contract Act, 1872
What is contract? What are the elements of a Contract?
Or
“All contracts are agreement all agreements are not contract” –
Explain.
Generally, Contract means an agreement, which creates some
obligation between two parties, but according to Indian contract act
1872, an Agreement enforceable by law is called contract 2(h).
From, the definition of contract, we know that a contract
should have an agreement but it does not mean that all agreements
are a contract, because an agreement to be a contract, should have
some elements or conditions, after fulfilling these condition we can
say that the agreement now become a contract.
➢ The elements of contract.
• Offer and acceptance: To be a contract there must be an lawful
offer by a party and accept the offer by the other party. Here
lawful means the offer must be comes under the law or Indian
contract act, 1872.
• Intention to create legal relationship: It means the agreement
must have the legal intention. For example an agreement to
playing hide and seek is not a legal intention full object, but an
agreement to sale goods is a contract.
• Capacity of parties: For create an agreement, both the party
must be a mature and rational human being. Below 18 years age,
lunacy, idiocy, drunker, mad, mentally disable, the person comes
under these type does not make an agreement, if so, then it does
not enforced by law.
