UZ Academy

Essentials of a valid contract

Hell every one today we are going to talk about the agreement and contract basically we are going to learn the difference between a contract and an agreement. This article is a complete lecture for law students and for b.com students to prepare there question for exam if this question is asked by your examiner then give the answer same like this article and you will become able to get almost full marks in this question. So let’s start

     A contract is an agreement enforceable at law made between two or more parties. In order to make a contract, there must be an agreement and that agreement must be enforceable at law. All agreement are contract when consent is free, parties are competent to make contract lawful consideration with lawful object and mot declared void

     Following are the relevant section regarding the concerned topic:-

                   à Section 2(h),10 of contract act 1872(only in Pakistan)

     Sec 2 (h) of contract act:-

          “An agreement enforceable by law is a contract”.

                    “An agreement creating or defining obligations between the parties”.

                    “every agreement and promise enforceable at law is a contract”.

     Following are the main essentials of a valid contract.

In order to make a contract there mest be an agreement. An agreement is an essential for a valid contract. An agreement enforceable at law is a contract.

          ‘A’ offers to sell his car to ‘B’ for 500,000/. ‘B’ accepts the offer.

In order to form an agreement there myst be a lawful offer by one party and acceptance by other party.

      Example:-

          ‘A’ offers to sell his car to ‘B’ for 500,000/. ‘B’ accepts this offer.\

Consent is said to be free when it is caused by:-

          ‘A’ at gunpoint compels ‘B’ to enter into a contract.

It is essential that parties are competent to make contract i-e, have an age of majority, have a sound mind and not disqualifies from law.

Consideration is “something in return”.

It mean that there is a valid contract only when both parties get something and give something.

          ‘A’ sells wine to ‘B’ on credit for one month. ‘B’ fails to make payment.

The object for which agreement has been made must not;

          ‘A’ agrees with ‘B’ to beat ‘C’ in exchange of certain sum. This agreement is void as its object is Void/Unlawful.

The contract Act 1872 (Pakistan) expressly declared some agreement as void for Example.

     It is necessary that agreement must not be declared void.

          ‘A’ in consideration of Rs. 50,000/. Agrees with ‘B’ to not to open a competing shop in front of A’s shop.

For the validity of the comtract it is necessary that terms of the agreement must be clear and certain.

          ‘C’ agrees to discover treasure by magic with ‘B’.

Law has specially prescribed some legal formalities like;

A valid contract must be capable of being performed.

                         Now you people have to give the Conclusion of this article to inform as about your conclusion you can easily comment is below