what agreements are contract as per indian contact act

Section 10 of the Indian Contract Act, 1872 defines what agreements are considered contracts. According to this section, an agreement becomes a contract if it fulfills certain essential elements. These elements include:

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Offer and Acceptance

There must be a lawful offer made by one party to another, and that offer must be accepted by the other party.

Intention to Create Legal Relations

The parties involved must intend to create a legally binding relationship. Agreements of a social or domestic nature usually do not have this intention.

Lawful Consideration

The agreement must involve consideration, which means something of value given by one party in exchange for something of value given by the other party. The consideration must be lawful, meaning it should not be illegal, immoral, or against public policy.

Capacity of Parties

The parties entering into the agreement must be competent to contract. They should be of sound mind, not disqualified by law, and above the age of majority (18 years).

Free Consent

The agreement must be entered into by the parties with their free consent, meaning there should be no coercion, undue influence, fraud, misrepresentation, or mistake.

Lawful Object

The purpose or object of the agreement must be lawful. It shouldn’t  be opposed to public policy, illegal or immoral.


The terms and conditions of the agreement must be clear and certain. Vague or uncertain agreements may not be enforceable.

Possibility of Performance

The agreement must be performable. If the performance is impossible, either initially or due to subsequent events, the agreement may not be considered a valid contract.

If all these essential elements are present, an agreement becomes a contract under Section 10 of the Indian Contract Act.

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