LAW FIRM IN BANGLADESH TRW LOGO TAHMIDUR RAHMAN

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Global Law Firm in Bangladesh.

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Contract Under Bangladeshi Law

The 6 Essential Elements of a Contract Under Bangladeshi Law

As in many other jurisdictions, a Contract Under Bangladeshi Law is considered legally enforceable when it incorporates six essential elements: Offer, Acceptance, Awareness (also known as Consensus Ad Idem or a meeting of the minds), Consideration, Capacity, and Legality. It is crucial that all six elements are present; a contract lacking any one of these elements can be deemed invalid and unenforceable.

This article provides a detailed explanation of each element and its importance in the context of Bangladeshi law. Please note that this information is for general purposes only and does not constitute legal advice.

What is a Contract?

In its simplest form, a contract is an agreement intended to be enforceable by law. The process of getting all necessary parties to sign a finalized agreement is called contract execution.

Contract Under Bangladeshi Law By Trw Law Firm Best Law Firm In Dhaka
Contract Under Bangladeshi Law 2

The Elements of a Contract

To ensure that your agreement is enforceable under Bangladeshi law, it must include the following six elements:

  1. Offer

    An offer is a clear statement of terms by which the offeror (the party making the offer) is willing to be bound. Without an offer, there can be no acceptance and thus no contract. The offer must be communicated to the offeree (the party to whom the offer is made) and must express the terms on which the offeror is willing to be legally bound.The offer marks the start of the contract process. Upon receiving an offer, the offeree can accept, negotiate, clarify, ignore, or reject the offer. It is important to understand the other party’s contract processes, as different offerors may handle counteroffers differently—some may see them as automatic terminations of the original offer, while others may not.
  2. Acceptance

    Acceptance occurs when the offeree agrees to the specific terms and conditions proposed by the offeror. For acceptance to be valid, it must be unequivocal and correspond precisely with the terms of the offer.Acceptance can be explicit, where the offeree provides a clear affirmative statement, often by signing the contract. Alternatively, acceptance can be implicit, where the offeree’s actions indicate agreement. While implicit acceptance may not have the same legal status as explicit acceptance, it can still create an implied contract enforceable under certain circumstances.
  3. Awareness (Consensus Ad Idem)

    Awareness, or consensus ad idem, refers to a meeting of the minds where both parties fully understand and agree to the contract terms. Both parties must acknowledge the existence of the contract and agree to be bound by its terms of their own free will.If awareness cannot be established, the contract may be voided and unenforceable. This element helps protect against undue influence, deception, or fraud, ensuring that both parties willingly and knowingly enter into the agreement.
  4. Consideration

    Consideration is what each party promises to give or do as part of the contract. It represents the value exchanged between the parties and can include goods, services, money, or other things of value. For example, in a contract to buy a car, the buyer’s consideration is the money paid, and the seller’s consideration is the car.Under Bangladeshi law, consideration is a critical component for the validity of a contract. According to Section 2(d) of the Contract Act 1872, consideration is defined as follows:”When, at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing, something, such act or abstinence or promise is called a consideration for the promise.”This legal definition underscores that consideration can be past, present, or future and must involve some detriment to the promisee or a benefit to the promisor.The principle of consideration ensures that there is a mutual exchange of value, which is fundamental to the concept of a binding agreement. Without consideration, a contract typically cannot be enforced, as it would lack this essential element of reciprocity.
  5. Capacity

    Capacity refers to the legal ability of the parties to enter into a contract. All parties must have the mental and legal capacity to understand the contract terms and the consequences of their agreement.Individuals who may lack capacity include minors, individuals under the influence of drugs or alcohol, and those who do not understand the language of the contract. Ensuring capacity is crucial as it confirms that each party fully understands what they are agreeing to.
  6. Legality

    The contract’s purpose and terms must comply with Bangladeshi law. Contracts involving illegal activities or goods are not enforceable. Additionally, contracts must adhere to public policy and cannot contravene any statutory provisions.

Why TRW Law Firm is the Best for Contract Agreements

TRW Law Firm stands out as a premier choice for handling contract agreements in Bangladesh for several compelling reasons:

  1. Expertise and Experience: TRW Law Firm boasts a team of highly experienced lawyers who specialize in contract law. Their deep understanding of the legal intricacies involved in contract formation, execution, and enforcement ensures that your agreements are robust and compliant with all relevant laws.
  2. Comprehensive Legal Services: The firm provides a full range of services related to contracts, including drafting, reviewing, negotiating, and litigating contract disputes. This comprehensive approach ensures that all aspects of your contractual needs are addressed efficiently and effectively.
  3. Tailored Legal Solutions: TRW Law Firm understands that every client and every contract is unique. They offer personalized legal solutions that are tailored to meet the specific needs and objectives of their clients, ensuring that the contracts are not only legally sound but also aligned with the clients’ business goals.
  4. Strong Track Record: The firm has a proven track record of successfully handling complex contract matters for a diverse clientele, including multinational corporations, small businesses, and individuals. Their success stories and client testimonials speak volumes about their capability and reliability.
  5. Commitment to Client Satisfaction: TRW Law Firm prioritizes client satisfaction by maintaining transparent communication, providing timely updates, and offering strategic advice. Their client-centric approach ensures that clients are well-informed and confident in their legal decisions.
  6. Legal Compliance and Risk Mitigation: The firm’s lawyers are adept at identifying potential legal risks and ensuring that all contracts comply with Bangladeshi laws and regulations. This proactive approach helps in mitigating risks and avoiding future legal complications.
  7. Efficient and Effective Resolution of Disputes: In the event of a contract dispute, TRW Law Firm’s skilled litigators and negotiators work diligently to resolve issues efficiently, whether through litigation, arbitration, or mediation. Their expertise in dispute resolution ensures that clients’ interests are protected and upheld.

By choosing TRW Law Firm, clients can be confident that their contract agreements are in capable hands, backed by legal professionals who are dedicated to achieving the best possible outcomes.


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DUBAI: Rolex Building, L-12 Sheikh Zayed Road
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