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Contract Law

The Essentials of a Valid Contract Under the Indian Contract Act

Offer, acceptance, consideration, and more — a refresher on what makes an agreement enforceable in India.

25 Apr 2025 · 5 min read

Under the Indian Contract Act, 1872, an agreement becomes a contract when it is made with free consent of parties competent to contract, for a lawful consideration and a lawful object.

## The building blocks Offer and acceptance, intention to create legal relations, lawful consideration, capacity of parties, free consent, and a lawful object.

## Free consent Consent is free when not caused by coercion, undue influence, fraud, misrepresentation, or mistake. Absence of free consent makes a contract voidable.

## Void vs voidable A void agreement is unenforceable from the start; a voidable contract is valid until the aggrieved party elects to rescind it.