PPT: Other Essential Elements of a Contract | Business Laws for CA Foundation PDF Download

 Page 1


What is an agreement?
? An arrangement(usually informal) between 
two or more parties that is not enforceable by 
law
Page 2


What is an agreement?
? An arrangement(usually informal) between 
two or more parties that is not enforceable by 
law
What is Contract?
? A formal arrangement between two or more parties, by 
its terms and elements, is legally binding and 
enforceable in a court of law.
Page 3


What is an agreement?
? An arrangement(usually informal) between 
two or more parties that is not enforceable by 
law
What is Contract?
? A formal arrangement between two or more parties, by 
its terms and elements, is legally binding and 
enforceable in a court of law.
Indian Contract Act 1872
? Came into force on 1
st
Semptember,1872.
? It extends to whole of India except Jammu and Kashmir.
? The Indian Contract Act has defined contract in Sec 2(h) as 
“an agreement enforceable by law” .
? It’s a combination of  two elements - agreement and 
obligation
Page 4


What is an agreement?
? An arrangement(usually informal) between 
two or more parties that is not enforceable by 
law
What is Contract?
? A formal arrangement between two or more parties, by 
its terms and elements, is legally binding and 
enforceable in a court of law.
Indian Contract Act 1872
? Came into force on 1
st
Semptember,1872.
? It extends to whole of India except Jammu and Kashmir.
? The Indian Contract Act has defined contract in Sec 2(h) as 
“an agreement enforceable by law” .
? It’s a combination of  two elements - agreement and 
obligation
Page 5


What is an agreement?
? An arrangement(usually informal) between 
two or more parties that is not enforceable by 
law
What is Contract?
? A formal arrangement between two or more parties, by 
its terms and elements, is legally binding and 
enforceable in a court of law.
Indian Contract Act 1872
? Came into force on 1
st
Semptember,1872.
? It extends to whole of India except Jammu and Kashmir.
? The Indian Contract Act has defined contract in Sec 2(h) as 
“an agreement enforceable by law” .
? It’s a combination of  two elements - agreement and 
obligation
Essential Elements of A Contract
? Agreements
? Legal Purpose
? Lawful Consideration
? Capacity to Contract
? Consent to contract
? Legal objective
? Certainty
? Possibility of performance
? Legal formalities
? Not expressly declared as 
void