If we enter into a contract with pre-established terms, which is mandatory under the law, that contract becomes a legal contract. When a contract has certain conditions, which are then imposed by law, that contract is required by law. To form a contract, the parties must approve the agreement. When a verbal agreement includes the condition of a valid agreement, it is considered a contract. In the case of Sheela Gehlot v. Sonu Kochar – Ors Delhi High Court found that oral agreements are valid and enforceable and there could be no dispute about this, unless there is something that needs to be written. As in a treaty, there must necessarily be a proposal and an adoption. The validity of an oral agreement cannot be questioned. A written agreement is considered important because an oral agreement cannot be presented as evidence in court. The burden of proof of the oral agreement rests with the party claiming to consider such an agreement.
In the case of Mohori bibee v. Dharmodas Ghose, Dharmodas Ghose being a minor, he mortgaged his assets to the benefit of the accused Brahmo Dutt, who was a money lender to obtain a loan. At the time of the transaction, the lender had known that the complainant was a minor. The Tribunal found that the defendant`s allegations had been dismissed. Minor`s agreement was cancelled and it was rescinded that the minor`s agreement had been cancelled and it was decided that the minor could not be asked to repay the loan he had taken out. Thus, sections 2 (h) and 10 of the Act describe the essential elements of a valid contract. If one of these elements is not fulfilled or is included in an agreement, it affects validity and does not constitute a valid contract. (3) When a party, whatever its innocence, makes an error in the case that is the subject of the agreement. Under section 23 of the Indian Contract Act, the following considerations and objects are not considered legitimate: coercion is defined in section 15 of the act as the commission or threat of an act prohibited by the Indian Penal Code (45 of 1860), or unlawful detention or threat of incarceration or arrest of any property under insanity , in any event, with the intention of getting a person to enter into an agreement. “Coercion means the commission or threat to commit any act prohibited by the Indian Penal Code (45 of 1860), or unlawful detention or threat of possession of any property, with the intention of getting a person to enter into an agreement.” If consent is caused by such a factor, the agreement is, at the party`s choice, whose approval has been provoked.
However, if the consent is involuntary, the agreement is considered invalid. Agreements that are not applicable by law – agreements that do not meet the essential conditions of a valid contract are not enforced by law and therefore cannot be considered contracts. Under Section 2 (g) of the Act, these agreements are considered invalid. For example, an agreement made by a minor is invalid. Section 24-30 of the Act mentions agreements that are considered invalid. Forming a partnership requires few basic formalities, such as written agreement or registration with an agency.B. All parties considered partners must agree to do so. A partner`s agreement can be explicit, such as signing a written partnership agreement. B or may be implied by the behaviour of the parties. The parties should not explicitly agree on the formation of a “partnership,” but their agreement or behaviour must agree to run a for-profit business. Even if the parties agree that their business is not characterized as a partnership, it can be established that it is a business if it meets the condition of a partnership company.