Page 2 - 01. Indian Contract Act, 1872

Agreements which are not contracts:

 Agreements relating to social matters:
 Domestic arrangements between husband and wife.

Q: Mr. A promised to pay his wife Rs. 30 every month as house hold
allowance. Later, the husband failed to pay the amount.

A : The wife could not claim as there was no intention to create legal
obligation and thus, it is not enforceable by law.

All contracts are agreements but all agreements are not contracts.

Essential elements of a valid contract:
 Sec. 10 of Indian contract Act says, “ All, agreements are contracts, if they are

made –
(i) By free consent of parties, competent to contract,

(ii) For a lawful consideration,
(iii) with a lawful object, and

(iv) Not hereby expressly declared to be void.

It includes:
(i) Offer and Acceptance

(ii) Intention to create legal relationship
(iii) Lawful consideration

(iv) Capacity to contract
(v) Free consent

(vi) Lawful object

(vii) Agreement not expressly declared void.
(viii) Consensus – ad- idem i.e meeting of minds

(xi) Certainty of meaning

(x) Possibility of performance
(xi) Legal formalities

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