The Essential Elements of a Valid Contract are important to constitute a valid contract,  an agreement becomes a contract if it fulfils all the essentials of a valid contractSection 10 of the Indian Contract Act, 1872 provides all the elements of contract.

The Essential Elements of a Valid Contract  1. Two or More Parties/Persons 2. Offer and Acceptance 3. Competent Parties 4. Free Consent 5. Consideration 6.Lawful Consideration and Lawful Object 7. Legal Relationship 8. Agreement Not Expressly Declared as Void 9. Certainty of Contracts 10. Performace of Contract

1. Two or More Parties/Persons Essentials of a valid contract, one of the elements is two parties/persons must be there to constitute a valid contract. One party who makes an offer is called an offeror/promisor and the other who gives his acceptance to that offer is called an offeree/promisee.

2. Offer and Acceptance The first and basic element of the valid contract is offer and acceptance, without offer and acceptance a contract can not arise. According to section 2 (a), the offer is defined as ''When one person signifies his willingness with another person to do or to abstain from doing something to obtain the assent of the other to such act or abstinence. He said to make a proposal/offer." According to section 2 (b), acceptance is defined as "When the person to whom the offer is made, signifies his willingness through his consent and gives acceptance to the offer. He said to make an acceptance to the offer."

3. Competent Parties The next essential element for a valid contract is the competency of the parties to enter into a contract. According to section 10, the parties entering into a contract must be competent. It is one of the essential elements given in section 10 of the Act. As per section 11 of the Act, the person competent to contract is a person who is the; a) Age of Majority b) Sound Mind Persons c) Expressly Declared Void

4. Free Consent Section 13 of the Indian Contract Act, defines the term 'Consent' as "Two or more persons are said to have consented that when they agree upon the same thing in the same sense." This is also stated as the identity of minds or in Latin terms stated as 'consensus-ad-idem'. Section 14 of the Indian Contract Act, defines the term 'Free Consent' as "The consent is said to be free when it is not caused by'; a) Coercion b) Undue Influence c) Fraud d) Misrepresentation e) Mistake

5. Consideration The definition of consideration has been provided under section 2(d) of the Indian Contract Act, 1872, the consideration is defined as "When at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or abstain from doing something, such act or abstinence is called a consideration for the promisee".

6. Lawful Consideration and Object As per section 23 of the Indian Contract Act, 1872, the consideration or object of an agreement is lawful, unless; 1. it is forbidden by the law 2. is fraudulent 3. is of such in nature that if it permitted then it would defeat the provisions of any law. 4. implies or involves injury to the person or property of another. 5. is immoral or opposed the public policy

7. Legal Relationship For a valid contract, both parties must have the intention to create a legal relationship. In the case of Balfour v/s Balfour, Lord Atkin explained the principle of intention to create legal relation to a contract and in this case, it was held that there are agreements between the parties which do not result in the contract because the parties did not intend that they shall be attended by legal consequences.

8. Agreement Not Expressly Declared as Void If an agreement is expressly declared void by law. Such agreements are void. Section 26 to 30 of the Indian Contract Act, deals with the types of void agreements that are expressly declared as void by law. These are; – Agreements in restraint of marriage (Sec. 26) – Agreements in restraint of trade (Sec. 27) – Agreements in restraint of proceedings (Sec. 28) – Uncertain agreements are void (Sec. 29) – Agreements for a wager are void (Sec. 30)

9. Certainty of Contracts The terms and conditions of the contract must be certain and should not be imaginary or illusionary. These are the contingent contracts. The conditions of every contract must be certain as the parties are able to perform those terms and conditions.

10. Performace of Contract The terms and conditions agreed upon in the agreement must be capable to perform by the parties to the contract. If there is an agreement to do an impossible work then the agreement is itself void because the parties are not able to perform the act.