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Friday, February 5, 2010

Essentials of valid contract



Offer and acceptance :
For a valid contract,Their must be an offer made by one party and should be accepted from the other party.The offer must be enforceable.

Example :

A agrees to sell his Sony Vivo Laptop for rupees 55,000 to B,A has an offer and if B accepts,Its an acceptance given by B.

Legal obligation :
For a valid contract,Both the offerer and offeree must creat legal obligation.Both the parties should fulfil their side of promises,in order to save themselves from breach.

Example :

A has offered his Sony Vivo Laptop for rupees 55,000 to B.B agreed.This has created a legal relationship.Both have made a promise.

Lawful consideration :
For a valid contract,consideration may be some benefit to other party.It is a price paid for the promise made by one party to another.contract will be valid when both parties get something.

Example:

A agrees to sell his Laptop Rs,55,000 to B.B accepts.Now Rs,55,000 is a consideration for A and the Laptop is a consideration for B.It must be lawful.

Capacity of parties :

A contract is valid only when both parties are normal.They should not be insane or mental.

Example :

A aged 20 has promised to sell his Laptop to B for 55,000.It is a valid contract because A is competent.


Free consent :

A contract is valid only when both the parties agree on the same things in same sense and manner.consent must be free.

Example:

A offers his Laptop for 55,000 to B.B knowing the conditions accepted.This makes the consent free.


Lawful object :

A valid contract also demands that,The object for which contract is being made should not be illegal,immoral and against public.

Example :

A agrees to sell his Laptop to B.B accepts.Now the object is completley legal as A has all the documents of the particular object.

Writing and registration :

A contract may be oral or written.It depends on value of the asset.The more the value,the more chances of getting into a written form.

Example :

As we know,The value of asset consumed by A is 55,000.So,The contract is being made in written form for B.The value is high enough to put the contract in writing.

Certainity of terms :

A valid contract also demands that asset must be specified,Full information should be given.

Example :

A has 2 Laptops of Sony Vivo.he has fully specified that which one out of 2 is offering to B.he has given every detail to B,which then made B to accept.

Ability of performance :

The valid contract must be capable of being performed.

Example :

A agrees to sell his Laptop to B.It is something that can performed.

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