ESSENTIAL OF A VALID CONTRACT

° LAWFUL OFFER AND ACCEPTANCE.
° INTENSION TO CREATE A LEGAL  
  RELATIONSHIP.    
° CAPACITIES OF PARTIES.
° LAWFUL CONSIDERATION       
° FREE CONSENT
° CERTAINTY
° LAWFUL OBJECT
° POSSIBALITY OF PERFORMANCE

EXPLANATION :

The agreement becomes a contract if it fulfills the following essentials:-
°LAWFUL OFFER AND ACCEPTANCE:- An agreement requires two parties for its formation. One party who offers and the other who accepts it, then, an agreement comes into existence. An offer must be lawful and definite and acceptance must be absolute and unconditional. Therefore in order to form a valid contract there must be lawful offer and acceptance.
° INTENSION TO CREATE A LEGAL RELATIONSHIP:- The parties to an agreement must have an intention to create a legal relationship. An contract cannot come into existence, in absence of intention of parties to create a legal relationship among themself. An agreement to dine at a friends place, to attend a social or religious function etc, does not confer right of action since it does not create legal relationship.
°CAPACITIES OF PARTIES:- The parties to an agreement must be competent to enter into a valid contract. It implies that parties to an agreement must:
(1.) Be of age of majority ( i.e 18 years or more)
(2.) Be of sound mind and
(3.) Not be disqualified from entering into a contact.
°LAWFUL CONSIDERATION:- Consideration means 'something in return'. The parties to an agreement must give something and must get return with something only then it will be called consideration. A price for promise. An agreement without consideration is not enforceable by law.
°FREE CONSENT:- A consent is said to be free unless it is not affected by coercion, undue influence, misrepresentation, misunderstanding,
fraud and mistake. The parties must enter into an agreement without any pressure.
°CERTAINTY:- The term of agreement must be certain. These should not be vague otherwise agreement cannot be enforced.
°LAWFUL OBJECT:- The object of contract must be lawful. The object of contract is unlawful if:-
(1.) It is forbidden by law.
(2.) It is fraudulent.
(3.) It cause injury to the person or property of another.
(4.) It is of immoral nature or opposed to public policy.
° POSSIBILITY OF PERFORMANCE:- The agreement must be such as it is possible to perform. An agreement impossible to perform cannot be enforced.