Contract Validity

A contract is an agreement made between two or more parties which the law will enforce. It can also be defined as an agreement enforceable by law. Offer and acceptance are the two basic steps in the contract progression. If one party proposes an offer and the other party accepts the terms and conditions of the proposal, a contract have been reached. At this point of time, the sole thing required to turn out to be a valid contract is what is acknowledged as the consideration. When two parties enter into a legal agreement, their intention must be to create a legal relationship between them.

An agreement to be enforceable by law must be supported by consideration. Consideration, here, means an advantage or benefit moving from one party to the other. The agreement is legally enforceable only when both the parties give something in return. Consideration need not necessarily be cash or kind. It can be an act or a promise. The parties entering into a contrast must be eligible to enter into one, in legal terms. He should not be a minor, i.e. must be above 18 years of age. A person with an unsound mind or intoxicated is not allowed to enter into a contract. The other flaws in capacity to enter into a contract are lunacy, idiocy and other state.

For a contract to be valid, the objects that are used in the contract must be lawful. They should be illegal or smuggled objects that are prohibited from being used in a country. The consent parties should understand the exact sense in which the contract is being meant. No external forces should be used on a person to enter to enter into a contract. Force, here, implies both physical and mental.

A contract may be spoken in words or a written contract. In terms of legal complications, there is no difference in legal effects between a contract made in written format or in words. But it is advisable to make a contract in written format. In some cases, a valid written contract should be stamped or in some other cases it should be legally registered. Failing to fulfill even one of the aforementioned regulations would make the contract invalid.