India Contract Act, 1872

Unit II
Contract : Definition
A proposal when accepted becomes a
promise.
 Every promise and every set of promises,
forming consideration for each other, is
agreement.
 An agreement enforceable by law is a
contract.
 Essentials of a Valid Contract

 Offerand Acceptance
 Lawful Consideration
 Capacity of Parties
 Minors,Lunatics, Drunkards, Idiots, Alien Enemy,
Convicts, etc. are incompetent.
 Free and Genuine Consent
 Lawful Object
 Certainty and Possibility of Performance
 Legal Formalities