Pertinent to contract terms and obligations.

Pertinent to contract terms and obligations.

  1. Offer and Acceptance:
    • A contract begins with one party making an offer and another party accepting it, demonstrating mutual agreement.
  2. Intention to Create Legal Relations:
    • Both parties must intend for the contract to be legally binding and enforceable in a court of law.
  3. Lawful Consideration:
    • There must be something of value exchanged between the parties as part of the agreement.
  4. Legal Capacity of Parties:
    • Parties entering into a contract must have the legal capacity to do so, implying they are of sound mind and not minors or disqualified by law.
  5. Certainty and Possibility of Performance:
    • The terms of the contract must be clear, specific, and capable of being performed.
  6. Free Consent:
    • Consent to the contract must be freely given, without coercion, undue influence, fraud, misrepresentation, or mistake.
  7. Lawful Object and Consideration:
    • The purpose and consideration for the contract must be lawful and not forbidden by law or against public policy.
  8. Performance of Contract:
    • Parties must perform their respective promises within the agreed-upon time and manner.
  9. Discharge of Contract:
    • A contract is discharged when the parties fulfill their contractual obligations or when the contract becomes void or voidable.
  10. Breach of Contract:
    • If a party fails to fulfill its obligations without a lawful excuse, it constitutes a breach of contract.
  11. Remedies for Breach:
    • Remedies for breach of contract include damages, specific performance, injunctions, and quantum meruit (reasonable value for services).

Understanding these key points helps in comprehending the essential aspects of contract terms and obligations as per the Indian Contract Act, 1872.