The Law of Contract: Salient Features of

Contract and Basic Elements – PART I

Salmond: basically contract defines obligation within

parties.
Sir William Anson: contract is agreement enforceable
between two or more people and rights are acquired by
one or more
Sir Frederick Pollock: contract is an agreement
enforceable at law
Chitty: agreement giving rise to obligations that are
enforced by law
Corpus juris secundum: final definition of contract is
not formulated basically contract is an agreement which
creates obligation
Black law dictionary: contract is between two or
more persons that create obligation to do or not a
particular thing.
Restatement of us laws: Agreement enforceable at
law is contract.
Essentials of a valid contract:
Agreements forcible by law as fulfills some conditions.
Conditions are called essentials of contract.
1. Parties: Two parties are essential to enter contract
one make offer other accept.
2. Agreement: Parties agreeing on same subject
matter. Agreement has well defined legal meaning.
 Offer/proposal: Word proposal is equivalent to
offer. Proposal arises when one signifies other
his willingness to do or to abstain from doing
anything. Promise is declaration from one
person of his intention to do or to forbear.
 Acceptance of offer: Proposal when accepted
becomes a promise .So acceptance is essential
to constitute an agreement.
3. Legal relationship: it is when two parties agree
to take a walk together so there is no contract
because parties intend they should be attended by
legal consequences.
4. Enforceability: to make a contract there should
be agreement and agreement should be enforceable
by law.
Contract =Agreement + Enforceability
(a) Agreement becomes contract as it is
enforceable at law. A proposal when accepted
 becomes a promise so agreement is accepted
proposal.
(b) Agreement is enforceable when fulfills
conditions like competent to contract, lawful
consideration or with a lawful object.
5. Free consent: It means agreement upon the same
thing in same sense and expression. Free consent is
caused by pressure or under influence or fraud. Free
consent of parties. Consent must be consensus ad
ideum
i) Consensus ad idem: It means both parties agree
on similar thing on same sense .When contract
comes into being there is proposal by one or more
persons and acceptance by others.

6. Lawful Consideration: Consideration is

‘something in return’. It is the doing of or abstinence
from an act. It may be past or present. Usually a
promise to give or to do something for nothing in
return is not enforceable at law; it need not be in
cash or kind.