{"id":8816,"date":"2023-09-28T11:40:04","date_gmt":"2023-09-28T11:40:04","guid":{"rendered":"https:\/\/signdesk.com\/in\/?p=8816"},"modified":"2025-11-21T04:03:00","modified_gmt":"2025-11-21T09:33:00","slug":"essential-elements-of-a-contract","status":"publish","type":"post","link":"https:\/\/melento.ai\/en-in\/blog\/essential-elements-of-a-contract","title":{"rendered":"What Are the Essential Elements of a Contract?"},"content":{"rendered":"<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">What if you\u2019ve just closed a high-value vendor deal, the terms are agreed, stakeholders are aligned, and execution is underway?\u00a0 But six months later, a dispute arises \u2013 one essential element is unclear, and the contract\u2019s validity is now questioned.<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Your contract must contain an Offer, Acceptance, Consideration, Capacity, and Legality \u2013 the <span style=\"font-weight: 400;\">essential elements of a valid contract.\u00a0 <\/span><span style=\"font-weight: 400;\">Otherwise, not only will the deal be at risk, but your company&#8217;s credibility will be compromised as well.\u00a0\u00a0<\/span><\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">This is the reality of poor contract structuring \u2013 a silent drain on value.<\/p>\n<ul>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Contracts govern approximately 60-80% of B2B transactions.<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Yet, companies lose close to 9% of their annual revenue due to contract mismanagement and value leakage.<\/li>\n<\/ul>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">As a CXO, your contract is not just paperwork; it\u2019s a promise on paper, so you must get it right!\u00a0 That\u2019s why Melento (Formerly SignDesk)\u2019s smart contract lifecycle management (<a href=\"https:\/\/melento.ai\/en-in\/clm\/\">CLM software<\/a>) tool exists.<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Over 3,000 CXOs have chosen Melento (Formerly SignDesk) CLM to enhance their contracting and achieve results \u2013 a 68% reduction in TAT.\u00a0 Now is your turn!\u00a0 Dive in to understand the essential elements of a valid contract and how <a href=\"https:\/\/melento.ai\/en-in\/\">Melento<\/a> (Formerly SignDesk) transforms contracting.<\/p>\n<h2><span style=\"color: #2c5363;\"><b>The 5 Essential Elements of a Valid Contract in Indian Law<\/b><\/span><\/h2>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Whether you\u2019re onboarding a partner, acquiring a company, or hiring talent, the strength of your agreement lies in these <b>five legal pillars.<\/b><\/p>\n<table>\n<thead>\n<tr>\n<th style=\"background-color: white;\" colspan=\"2\">\n<h3><span style=\"color: #2c5363;\"><b>The CXOs\u2019 Legal-Checklist for Valid Contracts<\/b><\/span><\/h3>\n<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>Legal Element<\/b><\/p>\n<\/td>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>Why It Matters for CXOs<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Offer<\/p>\n<\/td>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Sets the contract foundation<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Acceptance<\/p>\n<\/td>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Creates a legal obligation<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Consideration<\/p>\n<\/td>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Validates mutual value exchange<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Capacity<\/p>\n<\/td>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Ensures enforceability<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Legality<\/p>\n<\/td>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Protects from legal invalidation<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<ul>\n<li aria-level=\"1\">\n<h3><span style=\"color: #2c5363;\"><b>Offer (Proposal): Where Every Contract Begins<\/b><\/span><\/h3>\n<\/li>\n<\/ul>\n<table>\n<tbody>\n<tr>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">\u201c<i>A contract without a valid offer is like a building without a foundation &#8211; unstable and unenforceable<\/i><span style=\"font-weight: 400;\">.\u201d<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">According to Section 2(a) of the Indian Contract Act, a contract begins when one party expresses a<i><span style=\"font-weight: 400;\"> clear willingness<\/span><\/i><span style=\"font-weight: 400;\"> to do or not do something to obtain the other party\u2019s agreement.<\/span><\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>\u2705 What makes an offer legally valid?<\/b><\/p>\n<ul>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>Clarity<\/b><span style=\"font-weight: 400;\">: No vague terms, everything must be explicit and specific.<\/span><\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>Intent<\/b><span style=\"font-weight: 400;\">: There must be a genuine intent to enter into a legal relationship.<\/span><\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>Communication<\/b><span style=\"font-weight: 400;\">: The offer must be conveyed effectively to the other party.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">CXO Insight: An unclear offer derails deals.\u00a0 For large enterprises, contract standardization using<b> templates in Melento (Formerly SignDesk) CLM<\/b><span style=\"font-weight: 400;\"> ensures that every offer is transparent, compliant, and trackable from the start.<\/span><\/p>\n<ul>\n<li>\n<h3><span style=\"color: #2c5363;\"><b>Acceptance: Turning a Proposal into an Agreement<\/b><\/span><\/h3>\n<\/li>\n<\/ul>\n<table>\n<tbody>\n<tr>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">\u201cA counteroffer nullifies the original offer. This is where many deals often get stuck in a loop.\u201d<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">According to Section 2(b), acceptance occurs when the other party agrees to the offer, thereby making the contract binding.<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>\u2705 Types of Acceptance<\/b><\/p>\n<ul>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>Explicit<\/b>: Verbal or written consent.<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>By Action<\/b>: Accepting terms by acting on them.<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>Conditional<\/b>: Accepted, but only if specific criteria are met.<\/li>\n<\/ul>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>CXO Insight<\/b>: Melento (Formerly SignDesk) CLM <b>tracks acceptance timelines<\/b>, version histories, and legal changes, so there&#8217;s never confusion about what was agreed and when.<\/p>\n<ul>\n<li>\n<h3><span style=\"color: #2c5363;\"><b>Consideration: The Value Exchange That Seals the Deal<\/b><\/span><\/h3>\n<\/li>\n<\/ul>\n<table>\n<tbody>\n<tr>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><i>\u201cA contract without consideration is just a promise \u2013 not enforceable in court.\u201d<\/i><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Defined under Section 2(d), consideration is the value exchanged between both parties \u2013 money, services, rights, or obligations.<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>\u2705 Types of Consideration<\/b><\/p>\n<ul>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Executed: Something already done (e.g., payment made).<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Executory: A promise to do something in the future (e.g., scheduled delivery).<\/li>\n<\/ul>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>CXO Insight:<\/b> Automating consideration clauses across contracts helps reduce disputes.\u00a0 Melento (Formerly SignDesk)\u2019s <b>smart clause library<\/b> ensures standardized value exchange terms that hold up in audits and courts.<\/p>\n<ul>\n<li>\n<h3><span style=\"color: #2c5363;\"><b>Capacity: Who\u2019s Signing Your Contracts Matters<\/b><\/span><\/h3>\n<\/li>\n<\/ul>\n<table>\n<tbody>\n<tr>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">\u201cDeals signed by unauthorized or legally incapable individuals can be declared void in court.\u201d<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Sections 11 and 12 of the Contract Act lay down who is legally capable of entering into contracts.<\/p>\n<table style=\"height: 350px;\" width=\"513\">\n<tbody>\n<tr>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>\u2705 Legally Capable<\/b><\/p>\n<\/td>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">\u274c <b>Legally Incapable\u00a0<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<ul>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Adults (18+ years)<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Of sound mind<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Not legally disqualified<\/li>\n<\/ul>\n<\/td>\n<td>\n<ul>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Minors<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Individuals with mental health issues<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Those under the influence of alcohol or drugs<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Those unaware of contract language or content<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>CXO Insight:<\/b><span style=\"font-weight: 400;\"> With Melento (Formerly SignDesk), only verified users using <\/span><b>Aadhaar-based eSign<\/b><span style=\"font-weight: 400;\"> or <\/span><b>Class 3 DSCs<\/b><span style=\"font-weight: 400;\"> are allowed to sign, eliminating legal gray areas.<\/span><\/p>\n<ul>\n<li>\n<h3><span style=\"color: #2c5363;\"><b>Legality: If It\u2019s Not Lawful, It\u2019s Not a Contract<\/b><\/span><\/h3>\n<\/li>\n<\/ul>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Per Section 23, the purpose and consideration in a contract must be lawful.<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">\u274c Invalid if:<\/p>\n<ul>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">It breaks the law.<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">It\u2019s immoral or against public policy.<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">It harms others or promotes illegal activity.<\/li>\n<\/ul>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>CXO Tip<\/b>: Always embed <b>dispute resolution<\/b> and <b>governing law clauses<\/b> in your agreements. With Melento (Formerly SignDesk) CLM, you can automate these clauses to reduce oversight risks across global and domestic contracts.<\/p>\n<table>\n<thead>\n<tr>\n<th>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>Essential Elements of a Contract \u2013 Real-World Examples for CXOs<\/b><\/p>\n<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">1. <b>Employment Contracts<\/b><\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Offer + Acceptance + Consideration = Valid Contract<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Job role, salary, benefits, notice period \u2013 all clearly stated&lt;\/p?<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>Used in<\/b><span style=\"font-weight: 400;\">: Onboarding, HR ops, vendor hiring<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>2. Business Sale Agreements<\/b><\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Clear terms + legal intent + mutual consent<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Defines assets, price, liabilities, and closing conditions<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>Used in<\/b><span style=\"font-weight: 400;\">: M&amp;As, startup exits, franchise transfers<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>3. Real Estate Agency Agreements<\/b><\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Defined scope + timelines + commission terms<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Formal contract between the property owner &amp; broker<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>Used in<\/b><span style=\"font-weight: 400;\">: Leasing, commercial\/residential sales<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>4. Rental &amp; Lease Agreements<\/b><\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Legal subject + capacity to contract + mutual consent<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Rent, duration, usage rights, maintenance clauses<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>Used in<\/b><span style=\"font-weight: 400;\">: Property leasing, asset rentals, equipment hire<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>5. Royalty Agreements<\/b><\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Legality + clarity of obligations<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">IP usage rights, royalty rates, duration<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>Used in<\/b><span style=\"font-weight: 400;\">: Licensing, music, publishing, tech patents<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>6. Promissory Notes<\/b><\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Written promise + consideration + lawful purpose<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Loan terms, interest, repayment date, and collateral<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>Used in<\/b><span style=\"font-weight: 400;\">: B2B lending, founder loans, invoice financing<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>7. Non-Disclosure Agreements (NDAs)<\/b><\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Mutual consent + confidentiality clauses<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Defines what\u2019s confidential &amp; legal recourse<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>Used in<\/b><span style=\"font-weight: 400;\">: Pitches, partnerships, product discussions<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Contracts govern 60-80% of B2B relationships.<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Make them valid, 100% digital &amp; enforceable with Melento CLM.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span style=\"color: #2c5363;\"><b>Why Should Business Leaders Care About Contract Validity?<\/b><\/span><\/h2>\n<p style=\"font-size: 17px; font-family: 'open sans'; text-align: center;\"><em>What\u2019s at Stake and Why You Can\u2019t Afford to Wait<\/em><\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">As we have discussed so far, <b>contracts are not just legal formalities<\/b>; they\u2019re the foundation of your revenue, risk management, and reputation.<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Yet most organizations are still running contracts on outdated systems, scattered documents, and manual processes.\u00a0 And it\u2019s costing them big time.<\/p>\n<h3><span style=\"color: #2c5363;\"><b>The Business Impact of Ineffective Contracting<\/b><\/span><\/h3>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">According to IACCM and recent global surveys:<\/p>\n<ul>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">89% of organizations admit their contracting process is not \u201cvery effective.\u201d<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">50% of legal managers want to streamline workflows but struggle with automation.<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">65% of teams don\u2019t use integrated tools to manage agreements.<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">60% of companies are actively considering updates to their contract management software.<\/li>\n<\/ul>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">The result?\u00a0 A shocking 8.6% average contract value erosion and over $2.5M lost annually due to invalid documents.<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">That\u2019s why Invalid Contracts are real business risk!<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">When a contract lacks one of the five legal essentials (offer, acceptance, consideration, capacity, legality), or it\u2019s improperly signed or unstamped, the consequences are severe:<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Invalid or non-compliant contracts can\u2019t be enforced in court, delay revenue, increase audit risks, and damaging credibility.<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>Pro-tip for CXOs:<\/b> <i><span style=\"font-weight: 400;\">Companies using Melento (Formerly SignDesk) CLM report a <\/span><\/i><b><i>68% faster execution rate<\/i><\/b><i><span style=\"font-weight: 400;\">, <\/span><\/i><b><i>zero document duplication<\/i><\/b><i><span style=\"font-weight: 400;\">, and seamless audit readiness.<\/span><\/i><\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Let Melento (Formerly SignDesk) help you validate, automate, and scale every contract flawlessly.<\/p>\n<p style=\"text-align: center;\"><button class=\"navigate-to-form\"><strong>Book a Free CLM Audit<\/strong><\/button><\/p>\n<h2><span style=\"color: #2c5363;\"><b>Are Digitally Signed &amp; Stamped Contracts Considered Valid In India?<\/b><\/span><\/h2>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>Short answer?<\/b> Yes.<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">But here\u2019s the longer (and more critical) answer: Only if every legal and procedural box is ticked.<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">For your digital contracts to stand up in court, during audits, or in negotiations, these key conditions must be met:<\/p>\n<table style=\"height: 641px;\" width=\"473\">\n<tbody>\n<tr>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>Requirement<\/b><\/p>\n<\/td>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>Why It Matters<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>Correct Stamp Duty<\/b><\/p>\n<\/td>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Stamp duty must be paid per the applicable state laws and the type of document. Even a \u20b910 shortfall can lead to invalidation.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>Legally Recognized Signature<\/b><\/p>\n<\/td>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Use of <a href=\"https:\/\/melento.ai\/en-in\/aadhaar-esign\">Aadhaar eSign<\/a> or <a href=\"https:\/\/melento.ai\/en-in\/blog\/importance-of-digital-signature-certificates\">Digital Signature Certificates (DSC)<\/a> is mandatory for enforceability under the <a href=\"https:\/\/melento.ai\/en-in\/blog\/information-technology-act-2000\">IT Act, 2000<\/a>.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>Free &amp; Informed Consent<\/b><\/p>\n<\/td>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">All parties must have willingly entered into the contract \u2013 no coercion, no ambiguity.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>Secure Digital Recordkeeping<\/b><\/p>\n<\/td>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Contracts must be stored securely, with audit trails, timestamps, and IP logs to ensure tamper-proof validity.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">With the <a href=\"https:\/\/www.globenewswire.com\/news-release\/2024\/12\/26\/3001890\/0\/en\/India-Electronic-Contract-Services-Market-to-Worth-Over-US-624-33-Million-By-2033-eSignature-Demand-Among-Financial-Institutes-to-Remain-High-Says-Astute-Analytica.html\"><span style=\"font-weight: 400;\">Indian Electronic Contract Services<\/span><\/a><span style=\"font-weight: 400;\"> market expected to be worth over US$624.33 million by 2033, CXOs must stay up to date with legal compliance.<\/span><\/p>\n<h2><span style=\"color: #2c5363;\"><b>Why Melento (Formerly SignDesk) CLM Is the CXO\u2019s Contract Advantage<\/b><\/span><\/h2>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Whether you&#8217;re handling 10 contracts a week or 10,000 a month, Melento (Formerly SignDesk) Contract Lifecycle Management (CLM) makes every agreement airtight, audit-ready, and future-proof.<\/p>\n<table style=\"height: 362px;\" width=\"509\">\n<thead>\n<tr>\n<th>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>Real-Time eStamping in 25+ Indian States<\/b><\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><em>Missed stamp duty is one of the top reasons contracts get invalidated in audits or courts.\u00a0 With Melento (Formerly SignDesk) CLM, that\u2019s never a worry.<\/em><\/p>\n<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Stamping errors cost businesses millions every year.\u00a0 Melento (Formerly SignDesk) ensures that every contract is 100% duty-compliant before it is signed.<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">\u2705\u00a0 Automated calculation of state-specific stamp duty<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">\u2705Real-time digital stamping with instant proof of compliance<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">\u2705Integrated with stamp authorities across India, including Maharashtra, Karnataka, Delhi, Tamil Nadu &amp; more<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<table style=\"height: 319px;\" width=\"511\">\n<thead>\n<tr>\n<th>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>Integrated Aadhaar eSign &amp; DSC \u2013 Legally Enforceable in Court<\/b><\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><em>No manual signing, scanning, or courier hassles \u2013 just <a href=\"https:\/\/melento.ai\/en-in\/esign-workflow\">eSig<\/a>n for a seamless and secure signing experience.<\/em><\/p>\n<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">India&#8217;s Digital Signature Solution market is set to surge to <a href=\"https:\/\/www.globenewswire.com\/news-release\/2024\/11\/13\/2980476\/28124\/en\/India-s-Digital-Signature-Solution-Market-Set-to-Surge-to-USD-5-5-Billion-by-2030-Driven-by-Government-Endorsement-and-Digital-Engagement.html\"><span style=\"font-weight: 400;\">USD 5.5 billion by 2030<\/span><\/a><span style=\"font-weight: 400;\"> \u2013 You can be a part of it, but only by using compliant platforms like Melento (Formerly SignDesk).<\/span><\/p>\n<ul>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">100% compliant with the IT Act, 2000<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Tamper-proof signatures with full metadata<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Comes with geo-location and image capture features for fraud-proof signing<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<table style=\"height: 318px;\" width=\"510\">\n<thead>\n<tr>\n<th>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>Approval Workflows, Auto-Reminders &amp; Version Control<\/b><\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><em>Contracts often break down not in signing, but in how they\u2019re handled before signing.<\/em><\/p>\n<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Melento (Formerly SignDesk) CLM simplifies internal coordination with:<\/p>\n<ul>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">\u2705 Customizable approval hierarchies<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">\u2705 Auto-reminders for signers and reviewers<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">\u2705 Version tracking to eliminate confusion and duplication<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<table style=\"height: 313px;\" width=\"510\">\n<thead>\n<tr>\n<th>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>Tamper-Proof Audit Trails &amp; Centralized Repository<\/b><\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><em>When an auditor, regulator, or legal team asks, \u201cWho signed what, when, and where?\u201d \u2013 you\u2019ll have the answer.<\/em><\/p>\n<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">With Melento (Formerly SignDesk) CLM:<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">\u2705Every action from creation, edit, comment, and sign is time-stamped and traceable<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">\u2705 Central dashboard with searchable, filterable records<\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">\u2705Access controls to ensure only authorized users can view or act<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Melento (Formerly SignDesk) CLM isn\u2019t theory \u2013 it\u2019s powering absolute, large-scale compliance for brands you know and trust.\u00a0 Axis Bank, HDFC Life,\u00a0 PharmEasy, TTK Prestige, and many more have replaced their chaotic contract processes with Melento (Formerly SignDesk)\u2019s compliant, automated, and valid solution.<\/p>\n<table style=\"height: 115px;\" width=\"517\">\n<tbody>\n<tr>\n<td>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b><i>\u201cWe went from 30 days to 20 minutes with Melento (Formerly SignDesk) CLM.\u201d\u00a0<\/i><\/b><\/p>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\"><b>&#8211; TTK Prestige<\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">The bottom line?\u00a0 <span style=\"font-weight: 400;\">You need valid contracts that close deals faster, withstand audits, and protect your business.\u00a0 With Melento (Formerly SignDesk) CLM, that\u2019s precisely what you get.<\/span><\/p>\n<ul>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">1.6x faster execution \u2705<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">100% valid digital contracts \u2705<\/li>\n<li style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Clause-level intelligence &amp; tracking \u2705<\/li>\n<\/ul>\n<p style=\"text-align: justify; font-size: 17px; font-family: 'open sans';\">Get your contracts 100% validated with Melento (Formerly SignDesk)<\/p>\n<p style=\"text-align: center;\"><button class=\"navigate-to-form\"><strong>Get a Free Contract Validity Audit<\/strong><\/button><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What if you\u2019ve just closed a high-value vendor deal, the terms are agreed, stakeholders are aligned, and execution is underway?\u00a0 But six months later, a dispute arises \u2013 one essential element is unclear, and the contract\u2019s validity is now questioned. Your contract must contain an Offer, Acceptance, Consideration, Capacity, and Legality \u2013 the essential elements [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":8828,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"page_templates\/blog-new-3.php","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[9],"tags":[32,354,355,395,880,881,1116,1117,1118],"class_list":["post-8816","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-clm","tag-7-elements-of-a-contract","tag-consideration-in-contract","tag-consideration-in-contract-law","tag-contract-law","tag-elements-of-a-contract","tag-elements-of-contract","tag-essential-elements-of-contract","tag-essential-elements-of-contract-with-examples","tag-essentials-of-a-contract"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - 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