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Essential/ object/ requirement of valid contract
The contract is to be treated as valid and enforceable by law of the contract, if it satisfies following essential requirement: -
1. Competency
2. Proper proposal and acceptance
3. Free consent of the parties
4. Accuracy in subject matter
5. Valid consideration
Competency
The parties entering into an agreement should be legally competent to enter into agreement. The conditions of competency are as follows
a) The person should be major according to law.
b) The person should not have been debarred from entering into contract by any law.
c) The person should be of sound mind at the time of entering into contract.
d) The person entering into contract should not be under drunken state. Any contract made by an intoxicated person is invalid.
Proper Proposal and Acceptance
a) There should be acceptable proposal from one party by submitting a tender and wiling response from other party by accepting the proposal and this acceptance must be definite and unconditional.
b) Both the proposal and acceptance of the parties should be expressed in writing and communicated duly signed.
Fee Consent of the Parties
a) There should be fee consent between both the parties for entering into the contract i.e. both parties should agree on to the same thing and in the same sense.
b) The person should not be compelled for entering into contract by force or under the undue value influence.
Accuracy in Subject Matter
a) The subject matter of the conditions of the contract should be specific and lawful.
b) The condition of the contract should be clearly defined without any scope of ambiguity.
Valid Condition
a) The agreement should not be imposed by one party on other party
b) As per Indian contract act the consideration is valid if the consideration is real, lawful, certain and unambiguous. The consideration in civil engineering is a promise to do same work by one party in return of promise to pay the price for the same work by other party.
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