The general law of contract in Pakistan is contained in the Contract Act 1872. English decision’s (where relevant) are also cited in the courts. The Act defines “contract” as an agreement enforceable by law. The essentials of a (valid) contract are:

(a) intention to create a contract;

(b) offer and acceptance;

(c) consideration;

(d) capacity to enter into a contract;

(e) free consent of the parties;

(f) lawful object of the agreement;

Writing is not essential for the validity of a contract, except where a specific statutory provision requires writing. An arbitration clause must be in writing.