Contract

Definition: Contract

According to Indian Contract Act 1872, a Contract is an agreement (a promise and a reciprocal promise, forming the consideration for each other), between two or more parties, which is enforceable by law. The following are the essential elements of a valid contract:

• Presentation of an offer and its acceptance by the opposite party
• Intention to create Legal relation, and not social, religious, or moral agreements
• Lawful consideration, i.e., something in return is necessary
• The acceptance of offer should be from free consent, and not forced
• The object of the agreement should be legal and lawful
• The parties getting into agreement should be eligible to do so
• The agreement must not be expressly declared illegal by law
• Terms of the agreement must be certain and unambiguous.
• The agreement should be possible to perform
• The legal formalities should be in place. For example proof of some or all of the above elements may be done in writing, but many contracts may be made entirely orally or by conduct

Types of contracts:

• Express contracts and implied contracts
• Executed, Executory Contracts, and Partly Executed and Partly Executory Contract
• Unilateral contracts and bilateral contracts
• Valid contracts, void contracts, and voidable contracts
• Unenforceable contracts and illegal contracts

Hence, this concludes the definition of Contract along with its overview.

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