Valid Agreement

What is an Agreement?

An Agreement is one of the most important aspects of our daily life. Consciously or subconsciously, we enter into several agreements daily. Since an agreement confers various rights and obligations upon parties, it is very important to understand the type of agreement to protect our rights....

Essentials of Forming an Agreement

1. Two or more Parties: There must be at least two or more parties in order to form a valid agreement....

Types of Agreement under Contract Law

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1. Valid Agreement

A valid agreement is one that is enforceable by law. After getting legal enforceability, it shall become a contract and make the parties to the agreement binding to the conditions....

2. Wagering Agreement

It is a kind of agreement where the first party promises to pay the second party on the occurrence of a certain event and in return, the second party agrees to pay to the first party on the non-happening of an event. As per the provisions, all wagering agreements fall under Section 30 and are considered void....

3. Contingent Agreement

Contingent agreement is executed on the basis of a promise which is contingent on the happening or non-happening of an uncertain future event. For example, X promises Y to pay ₹2000, in case there is water damage to X’s house....

4. Voidable Agreement

A voidable agreement is an agreement that may be revoked by either of the parties to the agreement due to various legal reasons. Such an agreement, when enforceable by law is termed as a contract voidable at the option of a party....

5. Express and Implied Agreements

Section 9 of the act defines the term Express and Implied promises. It mentions that any promise made through words by the parties shall be considered an express promise and any promise made apart from words shall be considered an Implied promise....

6. Illegal Agreements

Any agreement that is against the provisions of the law in force in India shall be termed as an Illegal agreement. Either of the two conditions, illegal object or illegal consideration shall make the agreement illegal. Even if the agreement mentions performing an illegal act, it shall still be considered as an Illegal agreement....

Conclusion

The various kinds of agreements mentioned under the Indian Contract Act, 1872 are very crucial and important in the daily life of each and every person. An understanding of the types of agreements will help the parties to protect their rights and discharge their duties per the law. It should always be noted that an agreement should only be entered if such an agreement is enforceable in a court of law. The court denies providing relief to the parties stating the absence of legal enforceability in the agreements....

Agreement under Contract Law- FAQs

What is an Agreement?...