presentation on essential elements of contract.

2. CONTENTS
• Essential Elements of Contract
*Proper Offer & Acceptance
*Intention to Create Legal
Relationship
*Free Consent
*Capacity of Parties
*Lawful Consideration

3. Essentials of a Contract
-According to Sec 10,
"all agreements are contract if they are made by free
consent of the parties competent to contract, for a lawful
consideration and with a lawful object and are not hereby
expressly declared to be void."

4. Essential
elements
of a
contract
proper
offer &
acceptance
legal
relationshi
-p
free
consent
capacity
of
parties
lawful
consideration

5. Proper Offer & Acceptance
In order to create a valid contract, there must
be a 'lawful offer' by one party and 'lawful
acceptance' of the same by the other party.

6. Proper Offer & Acceptance

7. Intention to Create Legal Relationship
• In case, there is no such intention to create a legal
relationship on the part of parties, then there is no
contract.
• Agreements of social or domestic nature do not make
legal relations.

8. Free Consent
• 'Consent' means the parties must have agreed upon the same thing
in the same sense.
• According to Section 14, Consent is said to be free when it is not
caused by-
(1) Coercion, or (2) Undue influence, or
(3) Fraud, or
(4) Mis-representation, or
(5) Mistake.
An agreement should be made
by the free consent of the parties.

9. Capacity of Parties
• The parties of an agreement must be competent. If either of the
parties does not have the capacity to understand the contract, then
the contract is not valid.
• The following persons are incompetent to contract.
(a) Minors, (b) Persons of unsound mind,
and
(c) persons disqualified by law

10. Lawful Consideration
• In the words of Pollock, "Consideration is the price for which
the promise of the another is brought."
• Consideration is known as quid pro-quo or something in
return.

11. References
•Wikipedia
•Business Law by
P.C.Tulsian
•Lecture Notes