Concept of Free Consent

Introduction For an agreement to be a valid contract, it should meet the requirements of the same under Section 10 of the Indian Contracts Act, 1872. These requirements include free consent of the parties, lawful consideration with a lawful object, and not expressly declared void. According to Section 10[1], “All agreements are contracts if they are made by free consent.” Thus, if an agreement is made without the free consent of the parties, it cannot be a valid contract, and it would be voidable or void. Meaning of Consent Section…

CAPACITY TO CONTRACT

Section 2(h) of the Indian Contract Act, 1872 defines a contract as an agreement that is enforceable by law. The ability or eligibility of partners to form a business contract is the most important aspect of a legitimate partnership arrangement. The legal ability of an individual or an entity to enter into a partnership is referred to as “capacity to contract”. Before signing a contract, the partner must be competent and meet the stipulated standards, according to business law. The capacity in contract law is defined under Section 11 of the Indian Contract Act, 1872.…

PRIVITY OF CONTRACT

INTRODUCTION The doctrine of privity of contract is a common law principle that states only the contracting parties can sue or enforce their rights and liabilities and, no third party or stranger can confer obligations on anyone who is not a party to the contract, even if the contract is in his benefit. Hence, under the doctrine of privity of contract, a third party cannot acquire rights under, be liable for or enforce a contract to which he is not a party. MEANING AND SCOPE The doctrine of privity of…

Contracts and Its Essentials

Introduction The law of contract in India is governed by the Indian Contract Act, 1872.  According to section 2 (h) of the Indian Contract Act, 1872 contract is an “agreement enforceable by law”[1]. The definition of contract can be divided into two parts i.e. agreement and enforceable by law. Section 2(e) of the Act[2] defines agreement as “every promise and every set of promises forming the consideration for each other”. To make a layman understand an agreement is an accepted proposal. An agreement is an umbrella term and for both…