Section 10 Contract Act: What agreements are contracts

Section 10 of Indian Contract Act: What agreements are contracts

Official Bare Act Text

Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary

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Nothing herein contained shall affect any law in force in India, and not hereby expressly repealed, by which any contract is required to be made in writing or in the presence of witnesses, or any law relating to the registration of documents.

Statutory Defined Terms in this Section: (Click any term for official legal definition)

Consideration Sec 2(d) Contract Sec 2(h) Free Consent Sec 14

Legal Commentary & Landmark Judgments: Section 10

Section 10 of the Indian Contract Act, 1872 is the foundational gatekeeper of Indian contract law, specifying the essential statutory elements that elevate an informal agreement into an enforceable legal contract.

Core Legal Standard: Section 10 enacts that 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 to be void under the Act or other statutes.
Operational Mechanism: It incorporates by reference the statutory provisions governing competency (Sections 11–12), free consent (Sections 13–22), lawful consideration and object (Sections 23–24), and void agreements (Sections 25–30).

Furthermore, its second paragraph preserves all statutory formalities prescribed by other laws, such as mandatory writing, witnessing, stamping, or registration under the Registration Act, 1908.

Key Landmark Precedents:

Mohori Bibee v. Dharmodas Ghose (1903) 30 IA 114 (PC): The Privy Council established that competency to contract under Section 11 is an indispensable prerequisite under Section 10. A contract entered into by a minor is void ab initio and not merely voidable.
Central Inland Water Transport Corp v. Brojo Nath Ganguly (1986) 3 SCC 156: The Supreme Court ruled that an agreement featuring wholly unconscionable, one-sided terms entered into between parties of unequal bargaining power violates public policy under Section 23 and is unenforceable under Section 10.

Legal Commentary:

Section 10 underscores that while every contract is an agreement, not every agreement is a contract. In civil litigation, a defendant challenging a contract must demonstrate the absence of one of the Section 10 pillars: lack of competency, vitiation of free consent, illegality of consideration or object, or failure to fulfill statutory registration and stamping formalities.

Section 10: What agreements are contracts

Section 10 of Indian Contract Act: What agreements are contracts

Legal Commentary & Landmark Judgments: Section 10