Capacity to Contract

Capacity to contract For the validity of contract, the parties to the contract should be competent to contract. Every person is competent to contract (1) who is of the age of majority (2) who is of soundmind (3)who is not disqualified from contracting by any law to which he is subject.

Free Consent 

The contract should be entered into with the free consent. The consent is free when it is not caused by (1)coercion (2)Undue influence (3)Fraud (4)Misrepresentation or (5) Mistake.

Legality of object and consideration 

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It is essential that the consideration and object should be lawful. The same may be lawful unless;It is forbidden by law or  Is of such a nature that it would defeat the provision of law, or  It is fraudulent, or  It involves or implies injury to the person or property of another, or  The Court regards it as immoral or opposed to public  policy.

Void Agreements 

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There are certain agreements which have been specifically declared as void by the Act. 1.agreements of which the consideration or the object is not lawful. 2.agreements without consideration. 3.agreements to do an impossible act. 4.agreements in restraint of marriage. 5.agreemnents in restraint of trade. 6.agreemnets in restraint of legal proceedings. 7. agreements which are ambiguous and uncertain. 8. agreements by way of wager.

Contingent Contracts It is a contract to do or not to do something , if  some event, colleteral to such contract does or  does not happen. All insurance contracts come under this category.

Performance of Contract. Every contract consists of reciprocal promises . The  parties to the contract must either perform or offer to  perform their respective promises. If a promisor dies  before he has performed the contract, the representatives of the such a promisor are bound to  perform the contract unless contrary intention appears.