"What is a contract under the Indian Contract Act, 1872, and what are the essential elements of a valid contract?"

 Under the Indian Contract Act, 1872, a contract is defined as:

“An agreement enforceable by law.”
— Section 2(h), Indian Contract Act, 1872

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🔹 Meaning:

A contract arises when two or more parties make an agreement that creates legal obligations between them.
So, every contract is an agreement, but every agreement is not a contract — only those agreements which are legally enforceable become contracts.

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🔹 Difference between Agreement and Contract:

Basis	Agreement	Contract
Definition	Every promise or set of promises forming consideration for each other	Agreement enforceable by law
Legal enforceability	Not necessarily enforceable	Must be enforceable by law
Scope	Wider — includes social and moral agreements	Narrower — includes only legal agreements
Example	Promise to go for dinner	Promise to sell goods for money

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🔹 Essential Elements of a Valid Contract

For an agreement to become a valid contract, it must satisfy the following conditions (as per Sections 10–30 of the Act):

No.	Essential Element
1. Offer and Acceptance	There must be a lawful offer by one party and a lawful acceptance by the other, creating mutual consent.
2. Intention to Create Legal Relationship	The parties must intend that their agreement should be legally binding, not merely social or domestic.
3. Lawful Consideration	There must be something of value (money, goods, service, etc.) exchanged between the parties. It must be lawful.
4. Capacity of Parties	The parties must be competent to contract — i.e., of sound mind, major (18 years or above), and not disqualified by law.
5. Free Consent	Consent must be free and genuine, not caused by coercion, undue influence, fraud, misrepresentation, or mistake.
6. Lawful Object	The object or purpose of the contract must be lawful, not illegal, immoral, or against public policy.
7. Possibility of Performance	The terms of the agreement must be capable of being performed; impossible acts cannot form a valid contract.
8. Certainty and Clarity	The terms must be certain, not vague or ambiguous.
9. Legal Formalities	If any law requires certain contracts to be in writing, registered, or stamped, those formalities must be fulfilled.

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🔹 Example:

If A agrees to sell his car to B for ₹2,00,000 and B accepts the offer —
✅ Offer and acceptance
✅ Legal intention
✅ Lawful consideration and object
✅ Competent parties
✅ Free consent
→ This is a valid contract.

But if A agrees to kill someone for ₹50,000 — the object is illegal, ❌ so it is not a valid contract.