Understanding the Requirements of a Valid Contract under the Indian Contract Act, 1872 Introduction
Contracts are the backbone of modern commerce and daily life. From purchasing groceries to signing multi-million-dollar business agreements, contracts govern our interactions and transactions. In India, the Indian Contract Act, of 1872, provides the legal framework for contracts. To ensure fairness and enforceability, this act sets forth specific requirements for a contract to be considered valid. In this article, we will delve into the key provisions and elements that make up a valid contract under the Indian Contract Act, of 1872. Offer and Acceptance The cornerstone of any contract is the presence of a valid offer and an equally valid acceptance. These two elements mark the initial stages of contract formation. Offer: An offer is a clear, unequivocal proposal made by one party (the offeror) to another party (the offeree) with the intent to create a legal relationship. It must be specific in its terms and communicated to the offeree. In India, an offer can be made in writing, ve