FORMATION OF CONTRACT | INTENTION TO CREATE LEGAL RELATIONSHIP | INDIAN CONTRACT ACT, 1872

The formation of a contract involves several key elements that create a legally binding agreement between parties. For a contract to be valid, these elements must typically be present:
1. Offer: One party proposes specific terms to another party, showing a clear intent to be bound by those terms if the offer is accepted.
2. Acceptance: The other party agrees to the offer's terms without modifications, showing mutual consent. This acceptance must mirror the offer exactly, or it might be considered a counter-offer rather than an acceptance.
3. Consideration: Each party must exchange something of value, like goods, services, or money. This exchange is called consideration and serves as the "price" each party pays in the contract.
4. Capacity: Both parties must have the legal capacity to enter into the contract. Generally, this means they are of legal age, mentally competent, and not under the influence of drugs or coercion.
5. Legality: The contract's purpose must be lawful. Agreements involving illegal activities or objectives are not enforceable.
6. Intention to Create Legal Relations: Both parties must intend for the contract to have legal consequences and be enforceable by law.
If any of these elements are missing, the contract may be invalid or unenforceable.
This video is inspired by Channel : CH 26 IIT KANPUR 03 / @sprabha26
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[@chneerajsays]

Thank You so much Ma'am for explaining the Contract and agreement concepts so beautifully.

[@tabassumjahan702]

This was incredibly helpful! Thanks for breaking it down so clearly.