Essential Elements for Forming a Valid Contract under the Indian Contract Act 1872
Volume III, Issue VI, 2020
The Indian Contract Act, 1872 is the administrative law for the contracts. It includes various provisions relating to definition, formation of contract it’s procedure, essential elements, termination and various other provisions are included in it. Under the Act the meaning of the contract is given as, “Contract is an agreement which is enforceable by law”. So, first of all to form a contract there much be an agreement and for agreement there must be promise or a set of promise, acceptance, lawful consideration, competency and a legal intent. Therefore, these all are the essential elements of the contract, these elements play a most important role in the formation of a contact under the Act. An offer shall be made by either of a party and when that offer is accepted by the other party with a promise to something by taking a valid consideration then only it will become a valid agreement. When all these essential elements are fulfilled in an agreement it can become a contract, which is enforceable by law. All contracts are agreement but all agreements are not contact.