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Section 10 of the Indian Contract Act, 1872: 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...

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Contract Law
Published
October 1, 2026
Last updated
Oct 7, 2026
Reading time
7 min
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Last updated: October 2026Verified against: Government sources

Section 10 is the central test of the Act. It says that all agreements are contracts if they meet a list of conditions, and it adds a saving for laws that require writing, witnesses or registration. If you want to know whether a deal you have made is enforceable, this is the section to start with.

The conditions in the first paragraph

The Act, in section 2(h), defines a contract as an agreement enforceable by law. Section 10 tells you which agreements are enforceable in that sense. The text lists conditions, which we set out as a checklist.

#Condition in the textWhere the Act explains it
1There must be an agreementSection 2(e)
2Made by the free consent of the partiesSections 13 to 22
3The parties must be competent to contractSections 11 and 12
4For a lawful considerationSections 2(d), 23 to 25
5With a lawful objectSections 23 and 24
6Not expressly declared voidSections 24 to 30 and others

If you are about to sign or draft an agreement and want each box on this list checked, our agreement drafting service can review the draft against it.

1. An agreement

An agreement is "every promise and every set of promises, forming the consideration for each other" (2(e)). So there must be a promise, or a set of promises, which results from a proposal and its acceptance. See our article on section 2(e) to (j).

2. Free consent

The text uses the phrase "free consent". Section 13 defines consent: two or more persons consent when they agree upon the same thing in the same sense. Section 14 says when consent is said to be free: when it is not caused by coercion, undue influence, fraud, misrepresentation or mistake (subject to sections 20 to 22). Our overview of free consent, sections 13 to 22 explains the group.

3. Competent parties

Section 11 says who is competent: a person who is of the age of majority according to the law to which he is subject, who is of sound mind, and who is not disqualified from contracting by any law to which he is subject. Section 12 describes sound mind. We treat these in the articles on sections 11 and 12-13.

4 and 5. Lawful consideration and lawful object

Section 23 lists what makes a consideration or object unlawful: forbidden by law, defeating the provisions of any law, fraudulent, involving or implying injury to the person or property of another, or regarded by the Court as immoral or opposed to public policy. Every agreement with an unlawful object or consideration is void.

6. Not expressly declared void

Even if conditions 1 to 5 are met, an agreement that the Act expressly declares void is not a contract. Examples in the Act include agreements in restraint of marriage (section 26), in restraint of trade (section 27, to that extent), in restraint of legal proceedings (section 28, to the extent stated), agreements void for uncertainty (section 29) and wagering agreements (section 30). See our overview of void and voidable contracts, sections 24 to 30.

The second paragraph: writing, witnesses and registration

The second paragraph reads: "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."

Three points follow:

  • Section 10 does not itself require writing. An agreement meeting the conditions is a contract without a writing, unless some other law requires one.
  • Other laws can add requirements. The footnote to the Act mentions as examples section 25 of this Act, section 19 of the Copyright Act, 1957, sections 6 and 7 of the Carriers Act, 1865, and sections 12, 30, 46 and 109 of the Companies Act, 1956. The footnote is a pointer and we do not describe those laws here; check them directly.
  • Registration laws are untouched. The Act leaves any law on registration of documents as it is. For stamp duty and registration, see our guides.

A modern example (ours, not the Act's)

Rajan and Sneha, both adults of sound mind, agree that Sneha will supply organic vegetables to Rajan's restaurant for a monthly sum. Each promise is the consideration for the other, there was no threat or deception, the object (supply of vegetables) is lawful, and the Act does not declare such an agreement void. Under section 10 it is a contract.

Change the facts. Rajan agrees to pay Sneha monthly, but only because Sneha threatened to publish a false claim about his kitchen. Rajan's consent is not free consent, so the section 10 conditions are not met; section 19 deals with this case and calls it a contract voidable at the option of the party whose consent was so caused. Or suppose they agree that Sneha will also help Rajan evade a legal licensing requirement. The object is unlawful, so under section 23 that agreement is void.

What can the parties change?

The conditions in section 10 are the Act's own test; the parties cannot agree to dispense with them. The parties do choose the content: the promises, the consideration, the object, and whether to put the agreement in writing, sign before witnesses or register it. If another law requires a form, the parties must follow it, and section 10 says the Act does not displace that law.

Practical points

  • Run the checklist. Before relying on any deal, ask: agreement, free consent, competent parties, lawful consideration, lawful object, not declared void.
  • Check other laws on form. Some contracts need writing, witnesses or registration under their own statutes.
  • Check capacity. For companies, minors and persons with disabilities, look at the law that governs their capacity as well as section 11.
  • Document it anyway. Even where writing is not required, a signed agreement helps you show the terms.

Need help checking whether an agreement is valid?

If you want an agreement reviewed for the conditions in section 10, or want to draft one that meets them and any form requirements under other laws, our agreement drafting team can work through it with you.

Key takeaways

  • An agreement is a contract if made by the free consent of competent parties, for a lawful consideration and with a lawful object, and not expressly declared void.
  • All the conditions must be met.
  • Section 10 does not affect laws requiring writing, witnesses or registration.
  • Section 10 has no illustrations in the text we read.

Read next

Disclaimer: Based on the text of the Indian Contract Act, 1872 as consulted on 1 October 2026. Many questions under this Act turn on case law and on the wording of the particular contract, which this article does not cover. It is general information, not legal advice; check the official text and take advice before acting.

Quick recapKey facts & short answers

Key Facts About Section 10

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

Must a contract be in writing under section 10?

Section 10 does not require writing. The second paragraph preserves other laws that do.

What does "competent to contract" mean?

Section 11 says: of the age of majority under the law to which the person is subject, of sound mind, and not disqualified by any law to which he is subject.

Ask the question before you sign — it is always cheaper than asking it afterwards.

— TaxClue Compliance Desk

Section 10: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

People also ask

Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

Section 10 does not require writing. The second paragraph preserves other laws that do.

Section 11 says: of the age of majority under the law to which the person is subject, of sound mind, and not disqualified by any law to which he is subject.

Then the agreement does not meet the section 10 test. What follows depends on which condition fails: for example, section 19 makes some agreements voidable, and section 23 makes unlawful ones void.

Section 2(d).

Yes. It says the Act does not affect any law relating to the registration of documents.

No. Section 10 refers to agreements "expressly declared to be void" by the Act; those are found in later sections.