All agreements are not contract. Only agreements which accepts the condition under section 10, will be the contracts. These conditions are also called elements of contract. Following are these elements.
1. Offer and Acceptance
For contract, it is very necessary that one party must offer to do or not to do anything. Other party must accept his offer. If contract is done without acceptance or offer, it will not valid contract.
2. Legal Relationship
An agreement which bears a legal relationship, will be contract. If it yields only personal or family relationship, it will be not contract.
3. Competency of Parties
Parties must be competent. They should not minor. They should have healthy brain. Any party must not be unable for contracting with other party.
4. Free Consent
Consent of all parties must be free. It must not be under the pressure or cheating.
5. Lawful Consideration
A lawful consideration must be in the contract. Without consideration, agreement can not apply through court.
6. Contract not declared to Void
If contract is declared to void under this law or any other law, then it will not be a valid contract.
7. Formalities Required by Law
As per law, if there are formalities, all these formalities must be fulfilled by parties.