Explain FIVE conditions for a valid contract. – NABTEB QUESTION

Conditions for a valid contract:

(i) An offer must be made: This means that one party must propose that an agreement be made by both parties. A specified offer must be made to make clear the intention of the offeror.

(ii) The offer must be voluntarily accepted: The offeror must accept the offer before a
contract is made.

(iii) Both the offeror and the offeree must give a valuable consideration: An agreement can become a contract only when both the offeror and the offeree give or promise to give something of value to the other.

(iv) Both parties must have legal capacity to contract: Only adult citizens who are not insane have full capacity to enter into any kind of contract

(v) The contract must be in poor form: Although most contracts can be made by an oral statement, by an act or by a casually written document, for some types of contract, the law requires that a prescribed form be allowed