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BBA 3210 UCP Essential Elements of A Valid Contract Case Study

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User Generated
Subject
Business
School
University of Central Punjab
Type
Case Study
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10 Essential Elements of a Valid Contract in
Business Law
According to Sec. 10, “All agreements are contract if they are made by the free consent of parties
competent to contract for a lawful consideration and with a lawful object and are not expressly
declared to be void.”
Thus, Sections 2(h) and 10 of the Act state that there are some essential elements of a valid
contract. If any of these elements is not satisfied by an agreement, it will affect the validity and
will not form a valid contract.
On analysing the contents of Sec. 10. It is revealed that the following are the essentials of a valid
contract:-
1. Offer and acceptance. 6. Lawful consideration.
2. Legal relationship. 7. Lawful object.
3. Consensus-ad-idem. 8. Not declared to be void.
4. Competency of parties. 9. Certainty and possibility of performance.
5. Free consent. 10. Legal formalities.
1. Offer and acceptance:
In a contract there must be at least two parties one of them making the offer and the other
accepting it. There must thus be an offer by one party and its acceptance by the other. The offer
when accepted becomes agreement.

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