What is the Need of a Contract?

A Contract is an agreement between the parties on a certain matter or issue which is legally enforceable by law. The general principles of contract under the Indian Contract act, 1872 lays down various essentials need to be fulfilled for a valid contract, such as the consideration, consent, etc. Primarily, there should be the offer and acceptance for a contract. The important thing for a contract is the consideration because without consideration or illegal consideration makes a contract void and voidable. And another thing is the consent, it should be obtained without fraud, coercion, undue influence etc. In case the contract made of such actions leads to void and voidable to the option of the aggrieved party to the contract. And also there are restrictions on the person who can enter into the contract, such as minor, insane, intoxicated person can’t enter into the contract as to the general principles is concerned. The contract made by the child is void ab initio, which means it is void from the beginning itself. And also the object or for what the contract is also essential for the enforceability because unlawful objects and consideration can make a contract invalid. Addition to that agreement of restraining of marriage, legal proceedings, trade which will be void in nature. The contract for the happening of an event which is not going to happen, impossible events, gambling, wagering is also considered to void because such things won’t happen and also the probably matters. In a case of failing to fulfil the contract with the general principles is not considerable as a contract and won’t have legal validity won’t be enforceable and won’t bind the parties to the contract. If the contract is fulfilled all the general principles of the contract, it binds the parties and the aggrieved party for failing to act with respect to the contract by the other party, can sue or can claim for the damages which caused to them due to such actions.

Generally, a contract is written agreement but sometimes oral contract also valid but proving is very difficult and lies on the party who alleges it. There are various benefits due to contract for the parties, firstly on the matter agreed which will be expressed by the contract so parties later can’t go back from it and it also rigid can’t change it, which binds on them. The contract clearly expresses the rights and liabilities of the party so they can get to know by the contract itself no need to get confused or can’t modify later on or can’t disagree. The contract also binds the parties, so to the terms and conditions the parties need to act with respect to the agreement none can back out disagree to the conditions or terms agreed. It gives security and peaceful which means no need to get affair about the matter which contracted because on failure have the right to sue and to get compensation. It also plays a role in avoiding various illegal agreements or promising on illegal matters because such things are not contracts won’t bind the parties. And finally through contract can make the time frame which makes more comfort for the parties to the contract. So it is very clear without contract no promises or terms can be made enforceable, perfect, safe, effective and it plays a vital role in this business world.