ESSENTIALS OF A VALID CONTRACT
All of us have heard the term contract many times which is used in many fields of work, businesses etc. But have you ever wondered about the things that should be kept in mind while drafting a contract. What are the things and conditions that should be maintained while going for a contract?
A contract now a day is used in many fields whether it is work or leasing out a property or applying for a job. It’s use seemed to have increased and now everyone who is involved in any kind of business activity, use it as a tool to aid his business in order to safeguard himself from the fear of fraud that he could face by not using a contract and relying only on the commitments. A contract is written and gives the parties involved a fair power over one another so that if one party does not fulfill the agreement that suitable law action could be taken against the party who fails to meet the decided contract.
Thu by signing a contract both the parties agree to certain terms and conditions. Thus a contract is basically an agreement which is enforceable at law that is there are certain laws which are to be followed when drafting a contract. The laws relating to contracts are contained in the Indian Contract Act of 1872. The act was passes during the British rule in India and today it is applicable for all the Indian states except for Jammu and Kashmir. The legislation that is the Indian Contract Act looks upon the conditions in which the promises are made and it is the duty of the legislation to check that the parties are bound to their promises. Suitable law actions are taken against a party who fails to keep the promises as were mentioned in the terms of the drafted contracted.
There could be different types of contracts on the basis of validity, formation and performance.
The section 10 of the Indian Contract Act tells about the essential elements that a contract must have in order to be called a valid contract. According to Section 10,...