A contract is an agreement of a proposal between two parties in which one party gives a proposal and another party accepts the proposal.
The contract must be enforceable by the law and both the party in a contract makes the laws for themself only.
The contract in the constructions industry includes the work of construction, maintenance, repair, supply of material, and supply of labour on the construction site.
Let’s dive into the Essential Requirements Of Valid Contract in the construction industry-
Essential Requirements Of Valid Contract In Construction
For making a contract to be legally valid, some essential requirements are considered in the contract and these requirements are legally binding on both parties.
Here are the main 5 essential requirements to be considered in the contract so the contract becomes legally valid-
- Legally Competent Parties
- Free Consent Of The Parties
- A Lawful Subject Matter
- Proper And Valid Consideration
- Meaningful Contract In Written Format And Signed By Both Parties
Legally Competent Parties
The parties which are entering into the contract should have legally competent which means they have the necessary ability, knowledge, skill to do something successfully.
Anyone who is the major in the age and has well mind to perform the task perfectly can enter into the contract.
Free Consent (Agreement) Of The Parties
In the contract, the consent or agreement between two parties must be a genuine agreement between two parties.
Both the party agree on the conditions and they have the same opinion, purpose, understanding for the construction project.
If the parties do not have the same sense for a particular work then there is no contract is going to be established between both parties.
The contract shall not be established under the influences of others, by mistake, by misrepresentation, by fraud, and by any types of threats, violence, or under pressure.
The contract becomes invalid in the case when the contract is established by mistake or misrepresentation.
And in the case of fraud, threats, violence, the contract also becomes invalid and the party involved in such types of contract must be punished legally.
Lawful Subject Matter
All the contract which is established between two parties must be considered the law matters and do not violet any law.
If any contract between the parties violates some law of state government or central government then the contract becomes invalid.
It is also becoming invalid in the case when it opposes the common law and does not allow the public policy.
Proper And Valid Consideration
In the construction industry, valid consideration means a promise to do something by one party in return for money from another party.
In civil engineering the work of construction, maintenance, repair, supply of material, and supply of labour on the construction site.
The consideration may not return full promises but it should be real, and, competent.
Meaningful Contract In Written Format And Signed By Both Parties
According to the law, the contract must be in written format and signed by both the parties and have a meaningful sense.
If any contract is not in the written format and signed by both parties then it does not become a legal contract.
In the of the public body, an official duly authorized and signed contract fixed on the public body.
Frequently Asked Questions(FAQ)
What are the essential requirements of a valid contract in civil engineering?
The essential requirements of a valid contract in civil engineering are
1- Legally Competent Parties.
2- Free Consent (Agreement) Of The Parties.
3- Lawful Subject Matter.
4- Proper And Valid Consideration.
5- Meaningful Contract In Written Format And Signed By Both Parties.
What does mean by legally competent parties in the contract?
The legally competent parties in the contract mean the contractor has the necessary ability, knowledge, skill to do something successfully.