ALLAMA IQBAL OPEN UNIVERSITY
Roll No AD-514309
Registration No 09-PPP-000919
Subject code 5547
Question No. 1
Discuss in detail various essential of a valid contract.
Make a comprehensive study of contract of bailment and contract of agency. ?
What is Contract sec 2 (h)
“An agreement enforceable by law is a contract”. So therefore a contract is an agreement and to create legal obligation.
It is also defined as
According to law, so a contract is an agreement between two or more parties which, if it contains the elements of a valid legal agreement, is enforceable by law or by binding arbitration. A legally enforceable contract is an exchange of promises with specific legal remedies for breach. These can include compensatory remedy, whereby the defaulting party is required to pay monies that would otherwise have been exchanged were the contract honored, or an Equitable remedy such as Specific Performance, in which the person who entered into the contract is required to carry out the specific action they have reneged upon.
Different authors also defined the contract by their own words, some of them are as under:-
According to Salmond
“An agreement creating and defining obligations between the parties”
According to Sir William Anson
“A contract is an agreement enforceable at law made between two and more persons, by which rights are acquired by one or more to acts or forbearance on the parts of other or others.”
A valid contract is a law binding agreement which will be signed by both parties. This contract will be valid. If one party fails to perform his obligations the other party has right to sue for the performance of contract.
Essential elements of a Valid Contract
Agreements and contracts are two... [continues]
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