Every day, people make promises — to pay back money, to complete a job, to deliver goods.
Some are made over tea, others over text. But not all promises are legally binding. In Indian law, for an agreement to turn into a contract that the courts will enforce, certain conditions must be met. And these conditions are simpler than you might think.
A contract is defined in Section 2(h) of the Indian Contract Act, 1872 as “an agreement enforceable by law.” This means two people can agree on anything, but unless that agreement meets specific legal standards, it won’t be protected by the law.
The real question is: what makes an agreement enforceable?
To answer that, we turn to Section 10 of the same Act. It says a contract is valid when the parties involved are competent, the consent is free, the object is lawful, and there’s lawful consideration.
In simpler terms, Indian law looks at five or six core ingredients.
Here’s a table that breaks them down in plain language:
| Legal Element | What It Means in Practice |
|---|---|
| Offer and Acceptance | One person proposes a deal, and the other agrees to it clearly and willingly. |
| Lawful Consideration | There must be an exchange — money, service, goods, or even a promise. |
| Capacity to Contract | All parties must be adults, mentally sound, and not barred by law. |
| Free Consent | No threats, fraud, or confusion. Both sides must understand and agree voluntarily. |
| Lawful Object | The purpose of the agreement must not be illegal or against public policy. |
| Not Declared Void | The contract should not fall into legally “void” categories like wagering. |
Each of these parts plays a role. For example, if someone agrees under pressure or trickery, the contract is invalid. If one person is underage, it won’t hold up.
Even if all other things are in place, if the deal is about something illegal — like smuggling or fake licenses — the law won’t touch it.
Understanding these basics is not just for lawyers or judges. Anyone entering into an agreement — even if it’s for freelance work, a rental, or a loan between friends — should be aware of what makes that agreement legally enforceable.
If you’re planning to draft an agreement yourself, this guide might help: How to Make a Valid Contract Without a Lawyer
Also, the law doesn’t require complex wording or technical formats.
The courts look at intention, clarity, and whether both parties meant to be bound by the deal. Even WhatsApp messages or emails can be accepted as contracts if they show offer, acceptance, and mutual understanding.
To know which clauses can protect you in any agreement, see: 10 Clauses Every Agreement Should Have
Not every signed document is a contract. And not every unsigned agreement is invalid.
In India, the strength of a contract depends more on intent and legal substance than on technicalities like stamp paper or registration — unless a specific law requires it.
A common misconception is that verbal contracts are always invalid. That’s not true. Indian law does recognise oral agreements if they fulfil the essentials under Section 10 of the Indian Contract Act, 1872.
However, written contracts are easier to prove, especially when disputes arise.
Another doubt people have is about stamp paper. Most simple contracts — freelance work, service agreements, payment terms — are enforceable even on plain paper, provided they are signed and dated.
But contracts involving immovable property, leases over 11 months, or high-value transactions may need stamp duty and registration under the Registration Act, 1908.
Where most contracts fail is when there’s:
- No clear intention to create legal relations
- Lack of free consent (due to fraud, pressure, or misrepresentation)
- An agreement with a minor or unsound person
- An illegal object (e.g. contracts involving banned substances or false documentation)
- No consideration (one-sided promises with no exchange)
Here’s a simple table:
| Situation | Is It Binding? | Why or Why Not? |
|---|---|---|
| Promise made under duress | No | Violates free consent (Section 14) |
| Freelance work agreed over email | Yes | Has offer, acceptance, consideration |
| Contract with a minor | No | Not competent under Section 11 |
| Deal for illegal product | No | Unlawful object under Section 23 |
| Service agreement on plain paper | Yes | Valid if terms are clear and signed |
Clarity is everything. Even with good intentions, vague terms like “will try to pay soon” or “work will be done ASAP” can make enforcement difficult. Courts prefer agreements where obligations and timelines are specific.
And finally, just because a contract is signed doesn’t mean it can’t be challenged. If consent wasn’t free, or if the deal is illegal, the agreement becomes void.
To know your rights when a contract falls apart, read: What to Do If Someone Breaks a Contract With You
FAQs
1. Can a contract be valid without stamp paper?
Yes, unless a specific law requires stamping (like in property leases).
2. Are verbal contracts valid in India?
Yes, but hard to prove — written contracts are more reliable.
3. Can a contract with a minor be enforced?
No. Minors are not legally competent to contract under Section 11.
4. Is a WhatsApp agreement legally binding?
Yes, if it shows offer, acceptance, and intention to create legal obligations.
5. What makes a signed contract invalid?
Fraud, misrepresentation, coercion, or illegal object can void even a signed contract.
