Indian Contract Act 1872 Section 10: What Agreements Are Contracts
All agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void.
Nothing herein contained shall affect any law in force in India and not hereby expressly repealed by which any contract is required to be made in writing or in the presence of witnesses, or any law relating to the registration of documents.”
Explanation of Section 10 Indian Contract Act
Section 10 of the Indian Contract Act, 1872, defines what makes an agreement a legally binding contract. In simple terms, an agreement becomes a contract if:
(1) both parties freely agree without pressure,
(2) they are capable of contracting (e.g., not minors or insane),
(3) the deal involves something legal (like money or services) for a legal purpose, and
(4) the agreement isn’t declared void by the Act (e.g., not against public policy).
Additionally, some contracts must follow specific laws requiring writing, witnesses, or registration (like property sales), and Section 10 respects those rules. This section sets the foundation for enforceable contracts, ensuring they meet legal standards.
Key Points on Valid Contract 1872
- Agreements become contracts if made with free consent, competent parties, lawful consideration, and lawful object.
- Must not be expressly declared void under the Act (e.g., Sections 26-30 for void agreements).
- Respects existing laws requiring contracts to be in writing, witnessed, or registered.
- Forms the basis for enforceable contracts under Section 2(h) (contract).
- Ensures all essential elements align for legal validity.
Examples of Free Consent Contract 1872
- A and B agree to sell/buy a car for ₹5 lakh in 2025, both consenting freely and legally capable—Section 10 makes it a contract.
- A minor agrees to buy land in 2024—Section 10 deems it no contract due to incompetence (Section 11).
- A agrees to pay B ₹10,000 for illegal goods in 2023—Section 10 invalidates it for unlawful object.
- A and B sign a written sale deed for a house, registered in 2025—Section 10 upholds it, respecting registration laws.
- A agrees to marry B for money in 2024, against public policy—Section 10 doesn’t recognize it as a contract (void under Section 26).
Case Laws for Competent Parties 1872
- Mohori Bibee v. Dharmodas Ghose (1903): Privy Council ruled that a minor’s agreement isn’t a contract under Section 10 due to incompetence (ILR 30 Cal 539).
- Rajlukhy Dabee v. Bhootnath Mookerjee (1900): Calcutta High Court held an agreement with an unlawful object isn’t a contract per Section 10 (ILR 27 Cal 122).