Section 2(h) of the Contract Act, 1871 (“Contract Act”) states that an “…agreement enforceable by law is a contract”. Similarly, section 10 of the Contract Act stipulates that “All agreements are contracts, if they are made by the free consent of the parties,competent to contract, for a lawful consideration with a lawful object, and not hereby expressly to be void.” Therefore, the basic elements required to be proved for a valid agreement to be legally enforceable are mutual consent, expressed by a valid offer and acceptance; adequate consideration; capacity; and for it to be subject to the laws of the jurisdiction. These may be determined by looking at the objective manifestations of the intent of the parties as gathered by their expressed words and deeds, as well as objective evidence establishing that the parties intended to be bound. An agreement may be oral or in writing. A written agreement is an instrument whereby parties perform the act of declaring their consent as to any act or thing to be done by some or all parties through the process of writing. Where the parties to an agreement intend not to be bound until their agreement is reduced to writing and signed, neither party is bound until the writing is executed. If the written agreement pertains to financial or future obligations, it is to be compulsorily attested by two men or one man and two women, as provided by Article 17(2) of the Qanun-e-Shahadat Order, 1984 (“QSO, 1984”) which is sine qua non for a valid agreement. Such written document should not be used as evidence until the attesting witnesses are called for the purpose of proving its execution in a manner enumerated in Article 79 of the QSO, 1984.
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