SHORT ANSWER:
The Indian Contract Act 1872 outlines the essential elements of a valid contract.
DETAILS:
- A contract must have an offer and acceptance.
- Both parties must have the capacity to contract.
- The agreement must be lawful and not against public policy.
- Consideration must be present, meaning something of value is exchanged.
- Free consent of the parties is necessary, without coercion, undue influence, fraud, misrepresentation, or mistake.
PUNISHMENT / IMPLICATIONS (if applicable):
- Breach of contract can lead to compensation for damages.
SOURCE:
- Indian Contract Act, 1872
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