Many people believe that contracts are complex legal documents full of jargon, and that you always need a lawyer to make one.
But the truth is, under Indian law, anyone can create a valid contract—without being a lawyer or hiring one. Whether you’re hiring a freelance designer, renting a space, or agreeing to a partnership, you just need to understand a few basic principles and draft your terms clearly.
A contract, in simple terms, is an agreement between two or more people that is enforceable by law.
This definition comes from Section 2(h) of the Indian Contract Act, 1872, which says, “An agreement enforceable by law is a contract.” But not every agreement is legally binding. Indian law lays down a few essential elements that must be present for a contract to be valid.
Here’s a table that breaks down these essentials and what they mean in everyday language:
| Offer and Acceptance | One party proposes a deal, the other accepts it. Both must clearly understand the terms. |
| Lawful Consideration | There must be some exchange — money, services, goods, or promises. |
| Capacity to Contract | Parties must be adults (18+), of sound mind, and not barred by law. |
| Free Consent | No force, fraud, coercion, undue influence, or misunderstanding between the parties. |
| Lawful Object | The contract must not be for anything illegal or immoral. |
| Not Declared Void | It must not fall under any legally “void” categories, like certain wagering or restraint clauses. |
If these elements are met, the agreement is legally enforceable. You don’t need to use fancy legal terms or pay someone to write them for you. You just need to express what both parties have agreed to—clearly, in writing.
Once you’re ready to write the contract, here’s what you should include to make sure it holds up legally:
| What to Include | Why It Matters |
|---|---|
| Names and Contact Details | Clearly identify who is agreeing to what. |
| Description of Work or Exchange | Describe what service or goods are being exchanged. |
| Payment Terms | Include amount, mode, and timing of payment. |
| Deadlines or Duration | Define how long the agreement lasts or when things need to be done. |
| Termination or Exit Clause | What happens if one party wants to back out early? |
| Dispute Resolution Method | Mention how you’ll try to resolve any disagreements — informally, legally, etc. |
| Signatures | Signatures with date add proof of agreement. Witnesses are optional but helpful. |
If you’re not sure what kind of clauses to write, you might want to read: 10 Clauses Every Agreement Should Have
You also don’t need to write the agreement on stamp paper unless required by a specific law (like for rent agreements or sale deeds). For most basic contracts, a written and signed agreement on plain paper is valid.
Notarisation or stamp duty can make enforcement easier,but are not always mandatory.
Even WhatsApp chats or emails can sometimes be treated as valid contracts, if they show clear offer, acceptance, and intention. But it’s always better to put the terms in a single signed document, especially if money is involved.
While writing a contract on your own is entirely possible, there are some common mistakes that can make it weak or unenforceable in court.
A major one is being vague — for example, writing “payment to be made later” or “delivery as per convenience.” Indian courts prefer clarity. If any clause is unclear, it’s open to interpretation, which can hurt your case later.
Another mistake is forgetting key legal terms like consideration, duration, or dispute resolution. These aren’t just formalities — they show that the agreement was made with serious intent.
If challenged, the presence of these terms helps a court establish that the contract was meant to be enforceable under Section 10 of the Indian Contract Act, 1872.
People also assume that a verbal agreement is enough, especially in family or friendly setups. While oral contracts can be valid, they are hard to prove. If things go wrong, having something in writing — even a short note or signed email — will help.
So, when should you talk to a lawyer?
If the contract involves large sums, long-term obligations, or rights that could affect you significantly (like intellectual property or property lease), a professional’s input is wise. A poorly worded clause in such cases could cause long-term damage.
Also, if you’re unsure about backing out of a signed agreement, read: How to Cancel a Contract Without Getting Sued
Finally, make sure both parties have a signed copy, preferably with dates. Witnesses are not mandatory for most agreements, but they add credibility. Contracts don’t need to be registered or notarised unless the law requires it (like in the case of property transfers or leases above 11 months, per Section 17 of the Registration Act, 1908).
In the end, the real key is clarity and mutual understanding. A good contract protects both sides and prevents future conflict — whether or not a lawyer is involved.
FAQs
1. Is it legal to write my own contract in India?
Yes, as long as it meets the essentials under Section 10 of the Indian Contract Act.
2. Do I need a stamp paper to make a contract valid?
No. Stamp paper adds value in court, but isn’t mandatory unless specified by law.
3. Can a WhatsApp message or email be considered a contract?
Yes, if it shows clear offer, acceptance, and intention to be bound.
4. What happens if someone breaks the contract?
You can sue for breach and claim damages under Sections 73–75 of the Indian Contract Act.
5. Can I back out of a contract I signed without getting into trouble?
Depends on the termination clause. Read this: How to Cancel a Contract Without Getting Sued
