Agreements & Contracts

All agreements are contracts if made:

1. With free consent of the parties competent to the contract
2. For lawful consideration and object
3. Not expressly declared to be void
Parties Competent to Contract are: Every person is competent to contract if
he is:
4. Of the age of majority
5. Of sound mind
6. Not disqualified from contracting by law
Sound Mind:
A person is said to be of sound mind for making contract if at the time of
contracting is capable of understanding it and of forming rational judgment
of its effects on his interests.
 Consent & Free Consent
• Consent: Two persons agreeing upon same thing in the same sense
• Free Consent: Consent is said to be free if not caused or is free from:
i. Coercion
ii. Undue influence
iii. Fraud
iv. Misrepresentation
v. mistake
 Coercion & Undue Influence
• Coercion:
Committing or threatening to commit any act forbidden by Pakistan Penal
Code (PPC) or detaining or threatening to detain property of any person
with intent to force him to enter into an agreement.
• Undue Influence:
One of the parties to an agreement is in a position to dominate the will of the other
party or parties and uses that position to obtain an unfair advantage over the other or
others.

• A person is said to be in a position to dominate the will of another if he:

1. Holds a real or apparent authority over the other or stands in fiduciary relation to the
other.
2. Enters into a contract with a person having mental incapacity due to age, illness, or
mental or bodily distress.
Thank You