Section 10 Indian Contract Act 1872 - What Agreements Are Contracts

Section 10 of the Indian Contract Act, 1872 states the basic legal requirements that turn an agreement into an enforceable contract. It must be read with the definitions in Section 2 and the provisions on capacity, consent, lawful consideration, lawful object and void agreements.

Text and meaning of Section 10

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 expressly declared void by the Act.

The saving in Section 10 also preserves other laws that require a contract to be in writing, attested by witnesses, or a document to be registered.

In practical terms, Section 10 is the gateway provision for contractual validity. An agreement is not enforceable merely because the parties have reached an understanding. The statutory requirements governing consent, capacity, consideration, object and invalid agreements must also be satisfied.

Essential requirements of a valid contract

Agreement: There must first be an agreement arising from promises as understood with the definitions in Section 2.
Free consent: Consent must be free. Section 13 defines consent, while Section 14 explains when consent is free.
Competent parties: The parties must be competent to contract under Section 11. The requirement of soundness of mind is further addressed in Section 12.
Lawful consideration: The consideration supporting the agreement must be lawful. Section 23 of the Act governs when consideration or an object is unlawful.
Lawful object: The purpose or object of the agreement must also be lawful under the Act.
Agreement not expressly void: The agreement must not fall within a category that the Act expressly declares void.
Required form must be followed: Where another applicable law requires writing, witnesses, stamping or registration, Section 10 does not dispense with those formal requirements.

Free consent under Sections 13 and 14

Section 13 concerns parties agreeing upon the same thing in the same sense. Section 14 deals with free consent and links it to the statutory rules concerning coercion, undue influence, fraud, misrepresentation and mistake.

Competency to contract

Section 10 requires the parties to be legally competent. Section 11 provides the governing rule on competency, and Section 12 explains soundness of mind for contracting.

Lawful consideration and lawful object

A valid contract must be supported by lawful consideration and have a lawful object. Section 23 is therefore central to applying Section 10. An agreement whose consideration or object is unlawful cannot acquire enforceability merely because the parties consented to it.

Agreements expressly declared void

Section 10 expressly requires that the agreement must not be one declared void by the Act. The following provisions in Chapter II address important categories of void or voidable arrangements, including mistake and absence of free consent. See, for example, Section 19, Section 19A and Section 20.

Writing, witnesses and registration

The second paragraph of Section 10 is a saving clause. It makes clear that the Contract Act does not override another law merely because that law requires a particular contract to be written, witnessed or registered. Parties must therefore check any special statutory formality applicable to the transaction.

Official text: For the current statutory text and amendments, consult the Government of India sources linked in the sidebar. The Indian Contract Act, 1872 continues to be listed on India Code as Central Act No. 9 of 1872.

Quick summary

Section 10 provides the core test for contractual enforceability under the Indian Contract Act, 1872. The agreement should involve competent parties acting with free consent, lawful consideration and a lawful object; it must not be expressly void, and any separate legal requirement relating to writing, witnesses or registration must still be observed.