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Something of value exchanged by each party in a contract, it can be a promise, an act, or a forbearance.

In a valid contract, both parties must offer something of value, which can be either tangible or intangible.

When a prior legal relationship exists, like past debts, no consideration is required for a new agreement.

A person who is not a party to a contract cannot enforce its terms or be sued for its breach.

A contract must have a lawful purpose and not violate any laws or public policy.

A contract is not valid if one party's consent is not obtained freely. It can be affected by coercion, undue influence, fraud, or misrepresentation.

Threat or force used to gain someone's consent to a contract.

Taking advantage of a person's vulnerability or relationship to influence their decision.

A contract is an agreement between two or more parties that is legally enforceable. This agreement creates a mutual obligation between the parties, ensuring that they fulfill their agreed-upon responsibilities.

To be valid, a contract must include these elements: 1. Offer: A clear proposal with specific terms. 2. Acceptance: An unconditional agreement to the offer's terms. 3. Consideration: Something of value exchanged by each party. 4. Legal Capacity: Parties must be legally capable of entering a contract. 5. Legality: The contract's purpose must be lawful. 6. Consent: Agreement must be free from coercion or misrepresentation. 7. Certainty: Terms must be clear and definite.

A contract is a two-way street. It creates a binding obligation for both parties involved. One party's promise is exchanged for another party's performance. Each party makes a promise to do something in exchange for the other party's promise.

An offer is a clear and definite proposal made by one party (the offeror) to another party (the offeree), expressing willingness to enter into a legally binding agreement under certain specific terms. The offer must be communicated to the offeree and must be complete, leaving no room for further negotiation regarding its essential terms.

Acceptance is an unconditional agreement by the offeree to all the terms of the offer. It must be expressed in a way that demonstrates clear intention to be bound by the offer's terms. The acceptance must be communicated to the offeror, indicating the offeree's willingness to enter into the agreement.

Capacity refers to the legal ability of a person to enter into a contract. Individuals deemed incapable of understanding the nature and consequences of their actions are generally disqualified from entering into contracts. Examples include minors, people with mental illness, and those under intoxication. In such cases, contracts entered into by such individuals may be voidable or unenforceable.

A contract is lawful if its purpose and subject matter comply with the existing laws and public policy. Contracts that involve illegal activities or violate ethical principles are void and unenforceable. For example, a contract to commit a crime is considered illegal and cannot be enforced.

An invitation to an offer is not a binding agreement. The person making the invitation is not obliged to sell the goods at the advertised price.

A statement of intention is not a legally binding promise. The person making the statement is not liable for any losses incurred by others who rely on it.

A valid offer must have a clear intention to create a legally binding agreement. The offer must establish a legal duty on the party making it.

The terms of an offer must be specific, clear, and unambiguous. They should not be vague or open to interpretation.

An offer must be based on conditions that are certain and capable of being fulfilled. Uncertain or impossible conditions invalidate the offer.

An invitation to treat is a communication that invites interest in a potential offer. It is not a formal offer that can be accepted.

An advertisement for the sale of goods at an auction is not a binding offer. It is an invitation to treat.

Announcements made on loudspeakers are not binding offers. They are simply statements of intention.

Terms and conditions printed on a ticket will only bind the customer if they were clearly visible, communicated before or at the time of purchase, and are not against public policy.

An offer made in response to a request for goods or services, which may be either a single offer for a specific quantity or an open offer for an indefinite amount.

A binding contract is formed when the tender (offer) is accepted. This typically involves a specific quantity of goods or services.

A tender that remains open, allowing any quantity to be ordered within a specific timeframe.

Consideration refers to the price or value exchanged by each party in a contract. It's the 'something in return' that makes the promise legally binding. Without consideration, the agreement is just a bare promise.

The act or promise forming the consideration must be done at the request of the promisor. A voluntary act, without a prior request, doesn't count as valid consideration.

In a contract for the sale of a house, the buyer's promise to pay the price is the consideration for the seller's promise to transfer the house. Conversely, the seller's promise to transfer the house is the consideration for the buyer's promise to pay.

A valuable consideration can be a right, interest, forbearance, detriment, loss, or responsibility given, suffered, or undertaken by the other party. This is a key concept for determining the enforceability of contracts.

Necessities are what a minor actually needs, not just what they desire. It's not enough they are 'nice to have', they must be essential for their well-being.

Things that are luxurious or excessively costly are not considered necessities, even if they are useful. For example, diamond buttons are not a necessity, even though buttons are part of clothing.

If a minor has enough of something already, additional items of the same kind are not considered necessities. It doesn't matter if the other party knows this or not.

A minor can be appointed as an agent to represent someone else in transactions. However, the minor cannot be held personally liable for any mistakes or negligence. Only the principal is responsible.

A minor cannot be a partner in a business.

Contracts where the minor receives a benefit, like those providing education or employment, are generally considered valid. However, only the minor's property is liable, they are not personally responsible.

In India, all contracts made by minors are void, making it challenging to enforce even beneficial contracts. However, courts often find ways to protect the minor's interests.

Costs incurred in legally defending a minor's property in court are considered 'necessities'. This means the minor's property can be used to pay for these legal expenses.