1. INDIAN CONTRACT ACT,1872

2. LAW Law means a ‘set of rules’. Law means a ‘set of rules’. “Law includes all the rules and principles which regulate our relations with other individuals and with the state.” “Law includes all the rules and principles which regulate our relations with other individuals and with the state.” Law defines as the rules of conduct recognized and enforced by the state to control and regulate the conduct of the people, to protect their property and contractual rights with a view to securing justice, peaceful living and social security. Law defines as the rules of conduct recognized and enforced by the state to control and regulate the conduct of the people, to protect their property and contractual rights with a view to securing justice, peaceful living and social security.

3. Contract Contract: Contract: According to Sec 2(h) of ICA, 1872,” An agreement enforceable by law is a contract.” Agreement: Agreement: According to Sec 2(e) of the ICA, 1872,”Every promise and every set of promises forming the consideration for each other is an agreement.” Promise: Promise: According to Sec 2(b) of the ICA,1872,”A proposal when accepted, becomes a promise.”

4. Contract Agreement Enforceability of an agreement OfferAcceptance Of offer Legal obligation arising out of an agreement +

5. In case of domestic and social arrangements, parties to agreement donot intend to sue each other. In case of domestic and social arrangements, parties to agreement donot intend to sue each other. In commercial or business arrangements the usual presumption is that the parties intend to create legal relationship. In commercial or business arrangements the usual presumption is that the parties intend to create legal relationship.

6. Essential Elements of a valid contract According to Sec 10,” All agreements are contract if they are made by the free consent of the parties competent to contract, for a lawful consideration and with a lawful object and not hereby expressly declared to be void. According to Sec 10,” All agreements are contract if they are made by the free consent of the parties competent to contract, for a lawful consideration and with a lawful object and not hereby expressly declared to be void.

7. Elements of valid contract Proper offer and its proper acceptance. Proper offer and its proper acceptance. Intention to create legal relationship. Intention to create legal relationship. Free consent Free consent Capacity of parties Capacity of parties Lawful consideration Lawful consideration Lawful Object Lawful Object Agreement not expressly declared void Agreement not expressly declared void Certainty of meaning Certainty of meaning Possibility of performance Possibility of performance Legal formalities Legal formalities