Cross offer: Not Binding Contract
By Team Legistify / 2017-01-31
The requisites for the formation of a legal contract are an offer, an acceptance, competent parties who have the legal capacity to contract, lawful subject matter, mutuality of agreement, consideration, mutuality of obligation and writing. Cross offer similarly talks about if the offer is valid or not and whether the cross offer can be termed as a contract or not under the Indian Contract Act 1872.

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A Contract is an agreement between two or more parties that is enforceable by law as a binding legal agreement. The Indian Contract Act, 1872 came in to effect on September 1, 1872 and is applicable in the whole country. It governs entering into a contract, execution of the contract, and the effects of breach of contract. So for a valid contract, there should be an agreement which should also be enforceable by law. Also, the agreement must create a legal obligation or duty.

Essentials of a Valid Contract

All contracts are agreements but all agreements are not contracts. In order to become a contract, an agreement must satisfy following essential requirements:

1. Offer and Acceptance : For any contract, there must be at least two parties, one of them making the offer and the other one accepting it. The acceptance must be unconditional and absolute.

2. Consideration: Consideration means "something in return". It is a benefit moving from one party to another. Consideration need not always be in cash or in kind. It may be an act or promise to do or not to do something. It may be past, present or future. Consideration must be real and lawful. A documentation lawyer in India can be consulted for drafting a contract.

The requisites for the formation of a legal contract are an offer, an acceptance, competent parties who have the legal capacity to contract, lawful subject matter, mutuality of agreement, consideration, mutuality of obligation and writing. Cross offer similarly talks about if the offer is valid or not and whether the cross offer can be termed as a contract or not under the Indian Contract Act 1872.

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