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(a) Void Agreement.

(a) 238 Sections.

An agreement is declared void if any of the essential elements are missing, like free consent, lawful consideration, etc.

1. Presence of two or more parties.

2. Agreement between the parties.

3. Capacity to come in contract of both the parties.

4. Individual acceptance of the parties.

Law is a system or set of rules, by rules, regulations, principles, etc. prescribed or formed by local, or state, or national government.

(a) An agreement enforceable by law.

(b) Counter offer

A void contract is that which can’t be performed / completed at all. A contract when originally entered into may be valid, but it may subsequently become void because of sudden and unexpected events.

It is that branch of law which consists of laws relating to trade, industry and commerce.

(b)  Agreement.

The offer when accepted becomes an agreement and an agreement which is enforceable by law becomes a contract.

It means that in case of the breach of contract, the other party will pay for what has been done so far.

Commercial Law or Mercantile law.

(d) All of these

Meaning of Contract : 

A contract is a voluntary, deliberate, legally-binding agreement between two or more competent parties, which defines the legal obligation and authorities of parties.

According to Pollack : 

“Every agreement and promise enforceable by law is a contract”.

According to Sir William Anson : 

“A legally binding agreement between two or more persons is one by which rights are acquired by one or more to act or forbearance on the part of others”.

Elements of a Valid Contract :

• Presence of Two or More Parties : 

The first essential element of a valid contract is presence of at least two parties to make a contract, one party making the offer and the other party accepting it (offerer and offeree).

• Agreement : 

To form a contract, there must be an agreement between two parties. To form an agreement, there must be a proposal offer by one party and its acceptance by the other.

• Intention to create legal relationship : 

When the two parties enter into an agreement, their intention must be to create legal relationship between them. If there is no such intention on the part of the parties, there is no contract between them. For a valid contract, both the parties to a contract must bear in their mind that they will have some legal rights against each other and if any of them does not fulfill their obligation arising under the contract, then the court will make them fulfill their obligation.

• Contractual capacity : 

According to Section 10, an agreement becomes a contract if entered into between the parties who are competent to contract. According to Section 11, every person is competent to contract, who is not minor, not of unsound mind and not disqualified by any law which he is subject to.

• Free and genuine consent : 

It is essential for the creation of every contract that there must be a free and genuine consent of the parties to the agreement. The consent of the parties is said to be free when they are of the same mind on all the material terms of the contract. This is absent if the agreement is induced by coercion, undue influence, etc.

• Lawful consideration : 

It means ‘something in return’. The agreement is legally enforceable only when supported by consideration i.e. when both the parties give something and get something in return. Without consideration, a contract becomes void.

• Lawful object : 

The object of the agreement must be lawful. In other words, it must not be illegal, immoral, or opposed to public policies. If an agreement suffers from any legal law, it would not be enforceable by law.

• Certainty : 

Certainty is an essential element of a contract. The agreement must be certain and not vague or indefinite. If it is vague, it is not possible to ascertain its meaning.

• Possibility of performance : 

The terms of agreement must also be such as are capable of performance. An agreement to perform an act impossible in itself cannot be enforced.

• Agreement declared void : 

The agreement must not have been expressly declared void by any law enforced in the country.

• Legal formation : 

A contract may be made by words, spoken or written. As regards legal effects, there is no difference between a contract in writing and a contract made by words of mouth.

These are the contracts which can’t be enforced in a court of law because of some technical defect.

1. To control all the business/commercial activities. 

2. To provide guidelines for the conduct of business in the country. 

3. For smooth functioning of the companies in diverse situations. 

4. Effective administration and the resources can be creatively utilised for nation maximum benefit.

Law is a system or set of rules, by-rules, regulations, principles, etc. prescribed or formed by local government, state or nation to regulate and control human behaviour in social, economic and political areas. According to an author, law is a system of rules and principles accepted and used by the state to maintain law and order in the state.

• Offer : 

A person is said to have made a proposal/offer when he signifies to another, his willingness to do or to abstain from doing anything with a view to obtaining the assent of that other to such act or abstinence. In simple words – an offer is a proposal by one party to another to enter into a legally-binding agreement with it.

• Agreement : 

A proposal or offer when accepted becomes an agreement. 

An agreement, is an accepted proposal:

 Agreement = Offer + Acceptance.

• Cross-offer : 

When two parties exchange identical offers in ignorance at the time-of each other’s offer.

• Executory contract :

A contract in which both the parties have to still fulfill their respective promises.

• Pledge : 

The bailment of goods as security for payment of a debt or performance of a promise is called pledge.

• Lien : 

Right of one person to retain possession of some goods belonging to another until some debt or claim of the person in possession is satisfied.

• Bailment : 

It is the delivery of goods by one person to another for some purpose upon a contract, that they shall, when the purpose is accomplished, be returned or otherwise disposed of according to the direction of person delivering them.

• Injunction : 

When the court, by issuing an order, restrains the party in breach of a negative term of a contract from doing what he promised not to do, such order is called as injunction.

• Quantum Meruit : 

A right to sue on a quantum meruit arises where a contract, partly performed by one party, has became discharged by the breach of the contract by the other party, i.e. right is founded on an implied promise by the other party to pay for what has been done.

Contract is a voluntary, deliberate, legally-binding agreement between two or more competent parties which defines the legal obligation and authorities of parties. 

According to Pollack : 

“Every agreement and promise enforceable by law is a contract.” 

According to Sir William Anson : 

“A legally binding agreement between two or more persons by which rights are acquired by one or more to acts or forbearance on the part of other.” 

According to sec. 2 (h), a contract has these two essential elements :

1. An agreement, 

2. Enforceability by law.

(a)  Pollack.