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valid contract

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R.N. Raut
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3 views4 pages

valid contract

Uploaded by

R.N. Raut
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Essentials of valid contract

1. Lawful offer and acceptance


There must be at least two parties one making offer and other accepting the
offer to do or to abstains from during something. Such offer and acceptance
must be done lawfully or validly.

2. Intention to create legal relation


There must be intention among the parties to create legal relationship. The
intention of the party can be said as having intention to create legal relation
when offer and acceptance is done with intention to bring the action in the
court if any party breach or violet their part of promise.

3. Lawful consideration
Every promise made by the promiser must be supported by consideration
which means return to the sacrifice made by the promiser. The consideration
too must be lawful. The promise supported by unlawful consideration will not
valid and create the contract.

4. Capacity of the parties


All the persons involving to the contract must have the legal capacity or
capability of entering into contract. The agreement made by incapable persons
will not make the contract valid. The persons will be declare as capable when
he can understand what is right and wrong, What will be effect, and when he
can give rational decision in case of need in the contract.

5. Free consent
The contract to be valid, it must enter with free choice, option and free will of
the concerning parties. Because no one can forced to enter into a contract.

6. Lawful object
The contract to be valid it must be made for lawful or legal object. No one can
enter into the contract for illegal object, because illegal thing will not be allow
to be done by law.
7. Certainty
Every terms used in the agreement or contract must have clear meaning. The terms
or words used in the contract must not vague.

8. Possibility of performance
The purpose or object for which the contract is entered between the parties
must possible to do or to perform to be the contract valid. The contract for
impossible object or purpose will not be valid.

9. Writing and registration


Some of the important contract must enter in written and must registered in
the registration office to make the contract valid even though the contract
enter orally and impliedly is valid.

10. Not declare as void


The contract to be valid must not be declare as void by any special law. The
contract will not be valid if it is declare as void by any law of that country.

Types of contract

1. From the point of view of enforceability


a. Valid contract:
A contract which satisfies all the condition or essential elements of valid
contract or all agreement which are enforceable at law is a valid contract.

b. Void agreement
An agreement which is not enforceable at law or which is made with the
lacking of one or more essential elements of valid contract is said as void
agreement.
c. Voidable contract
An agreement which is enforceable by law at the option of one or more
parties there on not at the option of other or other is voidable contract.
The contract will be voidable if it is caused by a) coercion, b) undue
influence, c) misrepresentation d) fraud e) in certain case by mistake , or i)
when one of party prevent from performing it ii) when promiser fails to fulfill
in time another party may declare the contract as void.

d. Void contract
A contract which ceases to be enforceable by law becomes void when it
ceases to be enforceable. Contract may be void latter by i) supervennning
impossibility or illegality ii) by repudiation of voidable contract. iii) by being
impossible to happen the event in the contingent contract.

e. Illegal agreement
All the agreement the objects of which if it is prohibited by law to do is said
as illegal agreement. It is unenforceable at law from very begging (ab unitio)

f. Unenforceable contract
The contract which can not enforce at law because of technical defect in
contract is known as unenforceable contract.

2. From the point of view methods of creation


a. Express contract
The contract enter with the help of oral or written is known as express
contract

b. Implied contract
The contract enter by conduct (doing or not doing something by concerning
party) not with the help of oral or in writing is known as implied contract.

c. Quasi, semi, constructive contract


The contract which arise out of the assumption of law as contract even
actually not being contract is known as quasi contract.
3. From the point of view of execution
a. Executed contract
The contract where both of parties to it have performed their respective
obligations or legal duties under the contract is said as executed contract.

b. Executory contract
The contract under which both the parties to the contract still to perform their
respective obligations of the contract is known as executory contract.

4. From the point of view of consideration


a. Formal contract, contract under seal, contract under records
The contract which is made by fulfilling all the legal formality or made by
sealing the contract in a envelop or made by keeping records in the Govt.
office. This types contract even without considerations it is valid.

b. Simple or parol contract


The contract except formal contract is said as simple or parol contract which
is not valid without consideration.

5. From the point of view of involvement of obligation of the parties


a. Unilateral contract
The contract in which only one party have the obligation not of all parties is
known unilateral contract.

b. Bilateral contract
The contract in which both or all the parties to the contract have the
obligation to perform it is known as Bilateral contract.

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