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Notes On Other Essential Elements of A Contract Notes

The Indian Contract Act, 1872 outlines the essentials for a valid contract, including the competence of parties, free consent, lawful object and consideration, and the absence of expressly declared void agreements. It specifies that minors, individuals of unsound mind, and other disqualified persons cannot enter into contracts, and emphasizes that consent must be free from coercion, fraud, and misrepresentation. Additionally, it details the implications for minors in contracts, stating they can benefit but are not personally liable.

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9 views2 pages

Notes On Other Essential Elements of A Contract Notes

The Indian Contract Act, 1872 outlines the essentials for a valid contract, including the competence of parties, free consent, lawful object and consideration, and the absence of expressly declared void agreements. It specifies that minors, individuals of unsound mind, and other disqualified persons cannot enter into contracts, and emphasizes that consent must be free from coercion, fraud, and misrepresentation. Additionally, it details the implications for minors in contracts, stating they can benefit but are not personally liable.

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amadhur599
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© © All Rights Reserved
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Notes on Other Essential Elements of a Contract (Indian Contract Act, 1872)

Essentials of a Valid Contract

According to Section 10, an agreement must meet the following conditions to be enforceable
as a contract:

1. Competence of Parties:
o The parties must be capable of entering into a contract as per Section 11.
o A minor, a person of unsound mind, or a person disqualified by law is
incompetent to contract.
2. Free Consent:
o Consent must not be obtained by coercion, undue influence, fraud,
misrepresentation, or mistake. (Section 13 and 14)
3. Lawful Object and Consideration:
o The contract’s object and consideration must be lawful and not opposed to
public policy (Section 23).
4. Not Expressly Declared Void:
o It must not fall into categories like agreements in restraint of trade, wagering
agreements, or agreements to do impossible acts.

Competence to Contract

1. Minors:
o Definition: A person under 18 years of age (Indian Majority Act, 1875).
o Position of Minors in Contracts:
 Agreements with minors are void ab initio (Mohori Bibi v.
Dharmodas Ghose).
 Cannot ratify agreements upon reaching majority.
 Minors can be beneficiaries of contracts.
 Liable for necessaries supplied, but only their property, not personally.
2. Persons of Unsound Mind (Section 12):
o A person must be capable of understanding the contract and its effects.
o Contracts made during intervals of soundness are valid (Example: Lunatic or
intoxicated individuals).
3. Other Disqualified Persons:
o Foreign sovereigns, alien enemies, corporations, insolvents, and convicts.

Free Consent (Section 13 & 14)

 Definition of Consent: Both parties agree upon the same thing in the same sense
(Consensus ad idem).
 Free Consent Elements:
1. Coercion (Section 15):
 Committing or threatening unlawful acts to obtain consent.
 Example: Threatening suicide is coercion.
2. Undue Influence (Section 16):
 Dominating someone’s will to obtain an unfair advantage (Example:
Parent influencing a child’s decision).
3. Fraud (Section 17):
 Intentional deception to make someone enter into a contract (Example:
Selling a damaged product by hiding defects).
4. Misrepresentation (Section 18):
 False statements made innocently, leading to errors in consent
(Example: Misrepresentation of car mileage during sale).
5. Mistake (Sections 20-22):
 Bilateral Mistake: Both parties misunderstand the facts. Contract is
void.
 Unilateral Mistake: Contract is not voidable unless caused by fraud or
misrepresentation.

Lawful Object and Consideration (Section 23):

 Unlawful considerations include:


1. Forbidden by law.
2. Fraudulent or immoral.
3. Opposed to public policy (Example: Agreements for dowry or to suppress
criminal prosecution).

Void Agreements (Sections 24-30):

1. Agreements made by incompetent parties.


2. Agreements under mutual mistakes of fact.
3. Agreements without consideration (unless exceptions apply).
4. Agreements in restraint of trade or legal proceedings.
5. Wagering agreements (Example: Betting on uncertain future events).

Special Provisions for Minors in Contracts

1. Beneficiary Role: Minors can enforce rights but cannot bind themselves.
2. Necessaries: Liable for payment only through property, not personally.
3. Specific Cases: Minors cannot enter partnerships but can receive partnership benefits.

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