UNDERSTANDING ESSENTIAL ELEMENTS OF CONTRACT

Meaning of Contract: A contract is defined as an agreement enforceable by law. An agreement that is not enforceable by law is not considered a contract.

Essential Elements of a Valid Contract
Section 10 of the Indian Contract Act, 1872 provides that “all agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void”.
Therefore, essential elements of a valid contract are:
(i) An offer or proposal by one party and acceptance of that offer by another party resulting in an Agreement — consensus-ad-idem.
(ii) An intention to create legal relations or an intent to have legal consequences.
(iii) The agreement is supported by a lawful consideration.
(iv) The parties to the contract are legally capable of contracting.
(v) Genuine consent between the parties.
(vi) The object and consideration of the contract is legal and is not opposed to public policy.
(vii) The terms of the contract are certain.
(viii) The agreement is capable of being performed i.e. it is not impossible of being performed.