What is a Contract? | How a Contract is formed? | What is an Agreement? | Indian Contract Act 1872

🔴 What is a contract? So what is a contract? It’s an agreement, either written or spoken, between two or more parties that creates a legal obligation. The terms of a contract are enforceable by law, with clearly defined penalties and remedies should the contract be breached. A contract breach is a failure, without legal excuse, to perform any parts of the contract. 🔴 A contract is created when there is an offer, consideration, and acceptance between two or more parties. Contracts must contain six essential elements in order to be enforceable: 🫵🏻 Offer: a promise by one party to another that they will or will not perform a specific action in the future. Example: I will give you $500 to rake all the leaves in my front yard.” 🫵🏻 Acceptance: usually mirrors the terms of the offer—an expression, through words or deeds, that both parties agree to the terms of the contract. 🫵🏻 Awareness: proof both parties clearly understand and agree to “the basic substance of the contract.” 🫵🏻 Consideration: entails something of value promised in exchange for the actions (or nonactions) defined in the offer, the most common of which is payment for goods delivered. distinguishes a contract from a gift because it removes the voluntary nature of the act/non-act by requiring something of value in exchange for the promise. 🫵🏻 Capacity: each signatory to the contract has demonstrated the “legal capacity” to understand what they are signing. 🫵🏻 Legality: all contracts are subject to the laws of the jurisdiction under which they operate. ======================================== 🔴 This video might be useful for students preparing for - 🗣️ 11th Commerce #11thcommerce 🗣️ 12th commerce boards #12thcommerce 🗣️ CSEET(CS FOUNDATION ICSI) #cseet 🗣️ CA Foundation #cafoundation 🗣️ UGC NET COMMERCE #ugcnetcommerce 🗣️ LLB #llb 🗣️ UGC NET LAW #ugcnetlaw ======================================== 🔴 In this video - #padhakulog Teacher's Name - CS Payal Popli Topic - Meaning of Contract | How Contract is formed? =============================================== 🫵🏻 Connect with us- 🗣️Instagram- https://instagram.com/padhaku_log?igs... 🗣️Facebook-   / padhaku-log-101091301476679   🗣️Watsapp-9630227777 🗣️Telegram-9630227777 =============================================== ❤️About us: Padhaku Log is a platform specially created for those students who live in remote areas and don’t have access to fancy coaching classes. A channel which wants to bring parity in knowledge level of all.