A valid contract in India needs offer and acceptance, lawful consideration and object, competent parties and free consent under the Indian Contract Act, 1872. Good business agreements add clear scope, payment terms, liability limits, confidentiality, termination, dispute resolution and governing law, and are stamped as required by state law.
Essentials of validity
- Offer and acceptance
- Lawful consideration and object
- Parties competent to contract
- Free consent without coercion or fraud
Must-have clauses
- Scope of work and deliverables
- Payment terms and taxes
- Warranties, indemnity and limitation of liability
- Confidentiality and IP ownership
- Term and termination
- Dispute resolution and governing law
Common agreements
- NDA, service and vendor agreements
- Employment and consultancy agreements
- Shareholders' and founders' agreements
- Lease, franchise and distribution agreements
Short on time? Leegal can handle Contracts and Agreements for you, end to end.
Get expert help →Stamping and execution
Unstamped or under-stamped agreements face admissibility issues. Pay stamp duty as per state law, often via e-stamping.
Frequently asked questions
Are verbal agreements valid?
Verbal contracts can be valid, but proving terms is hard. Written agreements are strongly recommended.
Are e-signed contracts legally valid?
Yes, for most contracts under the Information Technology Act, except excluded documents such as wills and certain property instruments.
What happens if a contract is not stamped?
It may not be admissible as evidence until proper stamp duty and penalty are paid.
Should I choose arbitration?
Arbitration can be faster and private, especially for commercial disputes, if the clause is drafted clearly.
Let Leegal handle your Contracts and Agreements
Documentation, filing and follow-up by a dedicated expert, so you can focus on running your business.
- Dedicated point of contact
- Transparent pricing
- Pan-India service