Author - Associate Aliza Abdin
A contract is imperative to establish a mutual agreement between any two persons involved. The contract includes various aspects like terms of the employment and ownership to one’s property. A contract agreement is indispensable to have a steady business, and provides more transparency to the concerned persons and acts as evidence in case of any conflicts or misunderstanding.
A valid contract must contain the essential elements to make it a legally supported document.
The preceding step in drafting a contract is the offer by one person and the acceptance by another person. This offer, when agreed legally, becomes an agreement. It means that the person is agreeable to all the terms and conditions specified in the contract and would live by them, formally.
A legal association is obligatory for parties involved in the business. It works when any one of the parties breaks to keep up their words. In such a case, they suffer the losses under the contract rules. It means that the party can claim for the loss by presenting the agreement as legal proof in the court.
The parties signing the contract must provide mutual consent. The involved parties must think in one direction and be on par with each other.
It means that both parties must be capable of signing a contract. Any person who has a black mark in business or disregarded as illegal in business affairs are not competent to sign a contract.
According to Section 11, people under the following situations are not eligible for a Contract:
Under Section 13, it is crucial to seek consent from each party by accepting the terms and conditions in the agreement. Free consent refers to self-sufficient consent, which is not imposed, deceived, false, and exaggerated.
According to Section 10, an agreement becomes a valid contract only if it satisfies the lawful conditions.
The below considerations are considered unlawful:
The agreement must declare legal consideration to become lawfully valid. Consideration is providing something in return, for fulfilling the responsibility. Then only, it becomes a valid enforceable agreement.
There are certain agreements, which are considered void by the law of a country and such agreements are not legally enforceable, even if they hold all the essential elements of a contract. Such agreements are not in public interest, which includes restraint of trade and marriage. It is considered void because marriage is the individual right of a person.
The possibility of an agreement relates to actions, which are feasible in real life. Only such agreements will be considered legal and will be executed by the law. If an agreement is uncertain, then the agreement is regarded void legally.
A legally written agreement must comply with all standards and be duly attested and approved to be a valid agreement. If it fails, then it would not be enforceable by law.
A contract holding the above elements makes it a binding document. It, in turn, promotes business by building a healthy relationship between the parties. Hence, to achieve business goals and thrive in this aggressive market, it is crucial to adhere to all the laws in the contract.
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