Validity ppt

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Validity of a Contract:

Validity of a Contract Presented By Sub Maj Ramendra Singh Sub RK Singh Sub Brahm Singh Sub Bal Ram Hav Puran Giri Hav Jaswant Singh

Valid Contract:

Valid Contract An agreement enforceable by law. Satisfy all essential requirement as laid down by sec 10. If one or more of these elements missing the contract is not valid. Means it should be free consent of parties, competent to contract, for a lawful consideration and with a lawful object and are not hereby expressly declared to be void”.

Essential Elements of a Valid Contract:

Essential Elements of a Valid Contract Create Legal Obligation through Offer & Acceptance Legal Consideration & Object Capacity Free Consent Lawful Object

Create Legal Obligation through Offer & Acceptance :

Create Legal Obligation through Offer & Acceptance The agreement must comply with necessary formalities as to writing, registration, stamping etc, if any required in order to make it enforceable by law. Example An oral agreement for sale of immovable property is unenforceable because the law requires that such agreement must be in writing and registered.

Lawful Consideration & Object :

Lawful Consideration & Object Consideration means something in return. Without consideration a promise can’t be enforceable by law. However, consideration need not be in money or in kind. It may be of an act, abstinence, a promise to do or not to something. But consideration should be lawful. Example Sudhir agrees to sell his car to Sahil for Rs 1,00,000/- Here Sahil promise to pay Rs 1,00,000/- is the consideration for Sudhir to sell the car and Sudhir promise is consideration for Sahil. X promises to drop prosecution which he has initiated against Y for robbery and Y promises to restore the value of things taken. The agreement in not void because the consideration is unlawful.

Capacity :

Capacity According to Sec 11of the ICA 1872, every person is competent to contract who is of the age of majority according to the law of which he is subject and who is of sound mind and is not disqualified from contracting by any law to which he is subject Example Ashu a minor borrowed Rs 8000/- from Ram and executed mortgage of the property in favour of the lender. This is not a valid contract because Ashu is not competent to contract. Therefore, the mortgage was not valid and the money advanced to minor could not be recovered.

Free Consent :

Free Consent Absence of consent does not create a legal obligation. For an agreement to become a contract the parties to an agreements should give their consent to the agreement out of their own free will. It should not be induced by coercion, undue influence, fraud, misrepresentation, etc. Example Ravi threatens to kill Rani if she does not sell her house to Ravi. Rani agrees to sell her house to Ravi. In this case Rani’s consent obtained by coercion and therefore it can not be regareded as free.

Lawful Object :

Lawful Object The object of an agreement must be lawful. The object is considered lawful unless it is forbidden by law or is fraudulent or involves or implies injury to the person or property of another or is immoral or is opposed to public policy. Example X, Y & Z enter into an agreement to the division among them of gains acquired or to be acquired by them by fraud. The agreement is void because its object is unlawful. X lets a flat on hire to Y, unsocial element. Knowingly that it would be used for immoral purposes. The agreement is void because its object is for immoral purpose.

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