Question

Which of the following is an essential element of a valid contract under the Indian Contract Act, 1872?

• A. Consideration
• B. Written documentation
• C. Registration with a court
• D. Approval by a third party

Hint:

Consideration is the backbone of any contract under the Indian Contract Act. It represents the value exchanged between the parties involved.

Answer 1

The Correct Option is A

Under the Indian Contract Act, 1872, for a contract to be valid, it must meet certain conditions. Let’s break these down:
Step 1: One of the essential elements of a valid contract is consideration. Consideration refers to something of value that is exchanged between the parties. A contract cannot exist without consideration, meaning that each party must provide something in return for the promise made by the other party.
Step 2: While written documentation is necessary for certain contracts (such as real estate contracts), it is not a general requirement for all contracts to be valid under the Indian Contract Act.
Step 3: Similarly, registration with a court or approval by a third party is not required for a contract to be valid, unless specified by law for particular types of contracts. Thus, the correct answer is Consideration.
Step 4: The other elements such as mutual consent, capacity to contract, and legal purpose are also important, but consideration is the central aspect of a valid contract under Indian law.