Section 10 of Indian Contract Act
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 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Nothing herein contained shall affect any law in force in India and not hereby expressly repealed by which any contract is required to be made in writing2 or in the presence of witnesses, or any law relating to the registration of documents.
MCQs Based on Section 10 of the Indian Contract Act, 1872
1. Which of the following is NOT an essential element under Section 10 of the Indian Contract Act, 1872?
A) Free consent
B) Competent parties
C) Written agreement
D) Lawful consideration
Answer: C) Written agreement
Explanation: Section 10 does not require every contract to be in writing. It only mentions that certain laws may require writing, witnesses, or registration, but these are exceptions.
2. According to Section 10, when does an agreement become a contract?
A) When it is signed by both parties
B) When it is made with free consent, by competent parties, with lawful consideration and lawful object
C) When it is notarized
D) When it is made in writing only
Answer: B)
Explanation: An agreement becomes a contract if it is made with free consent, by competent parties, for a lawful consideration, and with a lawful object, and not expressly void.
3. A minor enters into an agreement with an adult to sell property. Is this a valid contract under Section 10?
A) Yes, if the minor agrees
B) Yes, if it is registered
C) No, because a minor is not competent to contract
D) Yes, if a guardian consents
Answer: C)
Explanation: As per Section 11, a minor is not competent to contract, so the agreement is void ab initio (invalid from the beginning).
4. Which of the following renders a contract void under Section 10?
A) Lawful object
B) Lawful consideration
C) Free consent
D) Object forbidden by law
Answer: D)
Explanation: If the object is forbidden by law, it makes the contract void because it fails the condition of lawful object.
5. What does the second part of Section 10 primarily deal with?
A) Breach of contract
B) Unlawful agreements
C) Formalities like writing, witnesses, and registration
D) Illegal consideration
Answer: C)
Explanation: The second part says that if any other law requires writing, registration, or witnesses, then that law will still apply. Section 10 does not override such laws.
6. Which of the following agreements is expressly declared void and hence not a contract under Section 10?
A) Agreement for sale of goods
B) Agreement in restraint of trade
C) Agreement for marriage
D) Agreement to buy furniture
Answer: B)
Explanation: Under Section 27, an agreement in restraint of trade is expressly declared void, so it cannot be a valid contract.
7. What is meant by “free consent” in context of Section 10?
A) Consent given under pressure
B) Consent obtained by fraud
C) Consent not caused by coercion, undue influence, fraud, misrepresentation, or mistake
D) Consent of a minor
Answer: C)
Explanation: As per Section 14, free consent means consent given without coercion, undue influence, fraud, misrepresentation, or mistake.
8. A contract for an immoral purpose is:
A) Valid
B) Voidable
C) Void
D) Enforceable with approval of court
Answer: C) Void
Explanation: A contract with an immoral object is void, as the object is not lawful under Section 10.
9. Which section of the Indian Contract Act defines a contract as “an agreement enforceable by law”?
A) Section 10
B) Section 2(h)
C) Section 13
D) Section 11
Answer: B) Section 2(h)
Explanation: Section 2(h) defines contract as “an agreement enforceable by law.”
10. If an agreement fulfills all the essentials of a valid contract under Section 10 but is for an illegal act, it is:
A) Valid and enforceable
B) Void
C) Voidable
D) Registered
Answer: B) Void
Explanation: Even if the other elements are satisfied, a contract for an illegal act is void due to unlawful object.
Section 10 Problem-Based Practice Questions
1. Contract with a Minor
Q: A, a 17-year-old boy, enters into a contract with B to sell his motorbike for ₹50,000. B pays the amount, but A refuses to deliver the bike. B files a suit to recover the bike or get a refund.
Answer: The contract is void; B cannot enforce it.
Explanation: As per Section 10 read with Section 11, a minor is not competent to contract. Therefore, the agreement is void ab initio (invalid from the beginning).
2. Agreement with Unlawful Object
Q: X agrees to pay Y ₹30,000 to forge certain official documents. Y forges the documents but X refuses to pay. Y sues X for payment.
Answer: The contract is void and unenforceable.
Explanation: Under Section 10, a contract must have a lawful object. Since forging documents is illegal, the agreement is void due to unlawful object.
3. No Free Consent (Undue Influence)
Q: A spiritual guru convinces his follower B to donate all his property, saying it is necessary for salvation. Later, B realizes the mistake and files a case to cancel the agreement.
Answer: The agreement is voidable at B’s option.
Explanation: Under Section 10 and Section 16, free consent is essential. If consent is obtained by undue influence, the contract is voidable.
4. Agreement Without Consideration
Q: C promises to gift his friend D ₹1 lakh out of love and affection. He signs a written document but later changes his mind. D sues to enforce the promise.
Answer: The contract is void due to lack of consideration.
Explanation: Under Section 10, a valid contract requires lawful consideration. A promise without consideration is not enforceable, unless covered by exceptions in Section 25.
5. Agreement to Do an Illegal Act
Q: M agrees to pay N ₹20,000 to help him smuggle goods across the border. N does the job, but M refuses to pay. N sues M for payment.
Answer: The agreement is void.
Explanation: As per Section 10, the object must be lawful. Smuggling is illegal. Therefore, the agreement is void and cannot be enforced.
6. Oral Agreement – Validity
Q: A verbally agrees to sell his second-hand laptop to B for ₹15,000. B pays the amount and takes the laptop. Later, A claims the agreement is not valid as it was not in writing.
Answer: The agreement is valid and enforceable.
Explanation: Section 10 does not require all contracts to be in writing unless a special law requires it. In this case, oral agreement is sufficient.
7. Consent Obtained by Coercion
Q: R agrees to sell his land to S at a very low price after S threatens to file a false police complaint. R later sues to cancel the agreement.
Answer: The contract is voidable at R’s option.
Explanation: Under Section 10 and Section 15, free consent is essential. Threats amount to coercion, making the contract voidable.
8. Competence – Unsound Mind
Q: T, suffering from mental illness, sells his house to U. At the time of the contract, T was not capable of understanding the agreement. Later, T’s legal guardian challenges the sale.
Answer: The contract is void.
Explanation: As per Section 10 and Section 12, the parties must be of sound mind at the time of agreement. T was not competent, so the contract is not valid.
9. Law Declared Contract Void
Q: Two parties agree that one of them will not marry for five years in exchange for a cash payment. Later, one party backs out and a case is filed for breach.
Answer: The contract is void.
Explanation: Agreements in restraint of marriage are expressly void under Section 26. Hence, under Section 10, it cannot be a valid contract.
10. Law Requires Writing and Registration
Q: P agrees to transfer immovable property worth ₹10 lakhs to Q through a verbal agreement. Later, P denies the deal. Q files a suit for specific performance.
Answer: The contract is unenforceable.
Explanation: Though Section 10 allows oral contracts generally, transfer of immovable property must be in writing and registered as per the Transfer of Property Act and Registration Act. Hence, oral agreement is not valid here.
Final Thoughts
Introduction
Section 10 of this Act tells us when an agreement becomes a legally binding contract. In simple words, it gives the basic conditions that must be fulfilled for any agreement to be enforceable by law.
What is an Agreement and Contract?
- Agreement: When two or more persons agree on something, and there is an offer and acceptance, it is called an agreement.
(Section 2(e) – “Every promise and every set of promises forming the consideration for each other is an agreement.”) - Contract: When an agreement is enforceable by law, it becomes a contract.
(Section 2(h) – “An agreement enforceable by law is a contract.”)
Essentials of a Valid Contract (Section 10)
Section 10 says:
“All agreements are contracts if they are made—
- by the free consent of parties,
- who are competent to contract,
- for a lawful consideration and
- with a lawful object,
- and are not expressly declared to be void.”
Let us understand each of these one by one:
Free Consent (Section 13 & 14)
- The consent of both parties must be free and voluntary.
- Consent is not free if it is given under:
- Coercion
- Undue influence
- Fraud
- Misrepresentation
- Mistake
Example: A agrees to sell his house to B, but B forces A at gunpoint. This is not free consent, so the contract is not valid.
Competent to Contract (Section 11)
- Parties must be legally capable of entering into a contract.
- A person is competent if:
- He is 18 years or older
- He is of sound mind
- He is not disqualified by any law
Example: A minor (17 years old) cannot make a valid contract.
Lawful Consideration (Section 2(d))
- Consideration means something in return.
- It must be legal and have some value in the eyes of law.
Example: A agrees to pay B ₹1,000 if B delivers goods. This is a lawful consideration.
Lawful Object
- The purpose or objective of the contract must be legal.
- If the object is:
- Forbidden by law
- Fraudulent
- Causes injury to person/property
- Immoral or against public policy
Then, it is not valid.
Example: A agrees to pay B ₹10,000 to steal documents. This is not a lawful object.
Not Expressly Declared Void
- Some agreements are expressly declared void by the Act.
Example:- Agreement in restraint of marriage
- Agreement in restraint of trade
- Agreement without consideration (with exceptions)
These cannot be valid contracts even if other conditions are fulfilled.
Additional Provision under Section 10 (Second Part)
“Nothing herein contained shall affect any law… which requires contract to be in writing, or in the presence of witnesses, or to be registered.”
This means:
- Some special contracts must follow certain formalities under other laws.
For example:- A sale deed of property must be in writing, signed, and registered.
- A gift deed may require witnesses.
So, Section 10 respects other existing laws that apply special rules.
Conclusion
Section 10 is the foundation of contract law in India. It explains that not all agreements are contracts. Only those agreements that fulfil certain legal conditions—like free consent, competence, lawful object and consideration—are valid contracts. It also reminds us to follow other laws that need contracts to be in writing, registered or witnessed.
Understanding Section 10 helps in knowing when an agreement becomes legally binding, which is very important in both personal and professional life.