Fundamentals of Business Laws and Business Communication · Void and Voidable Agreements, No Consideration No Contract

Essentials of a Valid Contract under Section 10

Updated 10 October 2026

Under Section 10 of the Indian Contract Act, 1872, 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 expressly declared void. Writing and registration are needed only where a law requires them.

Understand Essentials of a Valid Contract under Section 10

Start with two words. An agreement is every promise and every set of promises forming the consideration for each other (Section 2(e)). A contract is an agreement enforceable by law (Section 2(h)). So every contract is an agreement, but not every agreement is a contract.

Section 10 tells you which agreements become contracts. It sets out the conditions: free consent, competent parties, lawful consideration, lawful object, and that the agreement is not expressly declared void. Behind these sits the basic requirement of an offer and acceptance, which makes an agreement in the first place.

Think of Section 10 as a checklist. If an agreement passes every item, it is a valid contract. If it fails an item, it may be void, voidable or unenforceable, depending on which item fails. For example, if consent is obtained by coercion, the contract is voidable at the option of the affected party. If one party is a minor, the agreement is void.

Section 10 also says that nothing in it affects any law which requires a contract to be in writing, witnessed or registered. So an oral contract is generally valid, but a sale of immovable property of value ₹100 or more requires a registered document under the Transfer of Property Act and the Registration Act.

In the exam, you are usually given a short situation and asked whether it is a contract, or which essential is missing. Run the checklist and the answer follows.

Key formulas to remember

Section 10 rule: Valid contract = agreement + free consent + competent parties + lawful consideration + lawful object + not expressly declared void; All conditions must be met. Failing one means the agreement is not a valid contract.
Agreement and contract: Contract = Agreement + Enforceability by law; Every contract is an agreement. Not every agreement is a contract.
Agreement formation: Agreement = Offer (proposal) + Acceptance; An agreement comes first. Section 10 then tests whether it is enforceable.
Formalities: Writing, witnessing or registration needed only if a specific law requires it; Section 10 does not make writing compulsory for all contracts.
Effect of defects: Coercion, undue influence, fraud or misrepresentation: voidable. Bilateral mistake as to a matter of fact (Section 20): void. Lack of competence (minor): void. Unlawful object (Section 23): void. Expressly declared void: void.; Use this to name the type of agreement in MCQs. Only the first four defects of consent make a contract voidable. Illegal agreements are void and may also carry penal consequences.

How to solve Essentials of a Valid Contract under Section 10 questions

For any question on Section 10, check the agreement against each essential in order and name the result.

1Identify whether there is an agreement, meaning a valid offer and acceptance.
2Check whether the parties are competent: of the age of majority, of sound mind and not disqualified by law.
3Check whether consent is free, meaning no coercion, undue influence, fraud, misrepresentation or mistake. The first four make the contract voidable. A mistake of fact shared by both parties makes the agreement void (Section 20).
4Check whether there is lawful consideration and a lawful object. An agreement with an unlawful object is void (Section 23). If the act is also illegal, it can carry penal consequences.
5Check whether the agreement is one the Act expressly declares void, such as an agreement in restraint of marriage (Section 26), in restraint of trade (Section 27) or a wagering agreement (Section 30).
6Check whether any law requires writing or registration for this type of contract.
7State the result in the right term: valid contract, void agreement or voidable contract, and give the reason in one line.

Quickest way: Quick scan

When to use it: Use it for MCQs that ask which essential is missing or whether an agreement is a valid contract.

Look for a minor, a person of unsound mind or an unlawful act in the facts. These are the usual traps.
If a party was forced, deceived or pressured, think voidable, not void.
If the facts show a promise with nothing given in return, think no consideration, unless an exception applies.
If the option says all agreements are contracts or that writing is always required, eliminate it.
Pick the option that names the failed essential and the correct effect.

Common mistakes in Essentials of a Valid Contract under Section 10

Saying all agreements are contracts.
The two words sound the same in daily use.
Fix: Remember that only agreements enforceable by law are contracts. Section 10 lists the conditions.
Saying every contract must be in writing.
Students link legal validity with documents.
Fix: Writing or registration is needed only where a specific law demands it. Otherwise an oral contract can be valid.
Calling an agreement made under coercion or fraud void, or calling every lack of free consent voidable.
Students treat all defects of consent as one kind of defect.
Fix: Coercion, undue influence, fraud and misrepresentation make the contract voidable at the option of the affected party. It stays valid until that party avoids it. Only a bilateral mistake as to a matter of fact makes the agreement void (Section 20).
Treating a minor's agreement as voidable.
Students mix up the two types of defect.
Fix: A minor's agreement is void from the start. It is not enforceable by either side.
Forgetting the 'not expressly declared void' condition, or the rule on unlawful objects.
Students focus on the first four conditions and skip the last, and they blur void, illegal and unlawful.
Fix: Remember examples such as wagering agreements and agreements in restraint of trade. They may look complete but are still void. An agreement with an unlawful object is void under Section 23. An illegal agreement is void and may also carry penal consequences.

Worked examples

Example 1

Rohan, aged 16, agrees to sell his bicycle to Meera for ₹5,000. Meera agrees to pay. Is this a valid contract? Choose: (a) valid contract (b) voidable contract (c) void agreement (d) valid, but only if written.

Show the solution

There is an offer and acceptance, so an agreement exists.
Check competence: Rohan is 16, so he is a minor and not competent to contract.
Under Section 10, parties must be competent. This condition fails.
An agreement with a minor is void from the start, not voidable.

Answer: (c) void agreement

Example 2

Sunil agrees to sell his shop to Anita for ₹20,00,000. Both are adults of sound mind. Sunil agreed because Anita threatened him with a false criminal case. What is the nature of the agreement?

Show the solution

Agreement exists: offer, acceptance and a price of ₹20,00,000 as consideration.
Parties are competent, consideration is lawful, and the object is lawful.
Check free consent: a threat of a false criminal case is coercion, so consent is not free.
The result for lack of free consent is that the contract is voidable at the option of Sunil, the party whose consent was not free.
Until Sunil avoids it, the contract remains valid.

Answer: The agreement is a voidable contract, which Sunil may cancel because his consent was obtained by coercion.

Exam tips

Read the facts for the one defect planted in them, such as a minor, a threat or an illegal purpose, and match it to the effect.
Memorise the effect of each defect: lack of competence is void, coercion, undue influence, fraud and misrepresentation are voidable, a bilateral mistake of fact is void (Section 20), and an unlawful object is void (Section 23).
Options with always or all are usually wrong in this topic. Eliminate them first.
Expect direct questions on agreement versus contract. Use: contract = agreement enforceable by law.

Practice questions from Void and Voidable Agreements, No Consideration No Contract

Essentials of a Valid Contract under Section 10: frequently asked questions

What are the essentials of a valid contract under Section 10?

Section 10 requires free consent of parties competent to contract, a lawful consideration and a lawful object. The agreement must also not be expressly declared void. Where a law requires writing or registration, that must also be met.

What is the difference between an agreement and a contract?

An agreement is every promise and every set of promises forming the consideration for each other (Section 2(e)). A contract is an agreement enforceable by law (Section 2(h)). So every contract is an agreement, but not every agreement is a contract.

Must a valid contract always be in writing?

No. Section 10 allows oral contracts unless a specific law requires writing, witnesses or registration. Such a law then applies to that contract.

What happens if free consent is missing?

It depends on the cause. If consent was caused by coercion, undue influence, fraud or misrepresentation, the contract is voidable. The affected party can cancel it or keep it, and until it is cancelled it remains valid. If both parties made a mistake as to a matter of fact essential to the agreement, the agreement is void under Section 20.