LEGAL ENVIORMENT

-The laws influencing business

*Indian Contract Act,1872
*Indian Partnership Act,1932
*Indian Companies Act,1956
*Income Tax Act,1961


*INDIAN CONTRACT ACT,1872

*Elements of a valid contract:

*Agreement
Every promise and set of promises forming the consideration of each other is called an agreement

*Free consent
Acceptance or giving assent to an offer is called consent and if it is not due to coercion,undue influence,fraud,misrepresentationor mistake it is called free consent.

*Competent to contract
Persons who have attained majority,who are in sound mind and who is not disqualified from any other law will be competent to enter into contract.

*Lawful consideration
A consideration which moves from one person to another must be lawful and it may be in kind or cash
*Lawful object
The object of a contract must not be illegal or immoral or opposed to public policy
*Enforcable
The contract must fulfil all formalities laid down by other acts also
*Certainity of performance
The performance of a contract should have the possiblity to fulfil and it should be certain and not vague
*Agreement not declared void
The agreement must not have been declared void under any law