Contract Law: A Quick Overview

 

What is Contract Law?

Contract Law governs agreements between two or more parties that are legally enforceable. When one party fails to keep their promise, the law provides remedies.

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Essential Elements of a Valid Contract (Section 10, Indian Contract Act, 1872):

1. Offer and Acceptance – One party makes an offer, the other accepts it.

2. Lawful Consideration – Something of value is exchanged (money, goods, services).

3. Intention to Create Legal Relations – The agreement must be legally binding.

4. Capacity to Contract – Parties must be competent (e.g., not minors or mentally unsound).

5. Free Consent – No coercion, fraud, or undue influence.

6. Lawful Object – The purpose must not be illegal or against public policy.

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Types of Contracts

• Valid – Meets all legal requirements

• Void – Not enforceable by law

• Voidable – Valid until one party cancels it

• Unenforceable – Cannot be enforced due to technical issues (e.g., not in writing)

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Common Breach Remedies

1. Damages – Monetary compensation

2. Specific Performance – Court orders party to perform contract

3. Rescission – Cancel the contract

4. Injunction – Court prevents certain actions

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Conclusion

Contract Law ensures that agreements are honored. It protects rights, promotes fair trade, and builds trust in business and personal dealings.

Contract Law (Short + Example)

What is Contract Law?

Contract Law deals with legally enforceable agreements between two or more parties. If one party fails to fulfill the contract, legal action can be taken.

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Key Elements of a Valid Contract:

1. Offer and Acceptance

2. Consideration (something of value)

3. Intention to create legal relationship

4. Capacity to contract

5. Free consent

6. Lawful object

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🔎 Example:

Rahul agrees to sell his bike to Aman for ₹30,000.

• Rahul makes an offer.

• Aman accepts the offer.

• ₹30,000 is the consideration.

• Both are adults and agree freely.