Explain the following: (iv) Building contracts

Building contracts, being legal documents, have to be drawn in accordance with the provisions of the Indian Contract Act, 1872. Such an agreement or contract must be drawn in accordance with the provisions of the Act. All the essential ingredients of a contract, such as, a proposal, its acceptance, its due communication to the proposer, lawful consideration, lawful purpose and competence of parties to the contract etc. must be duly satisfied and ensured while drafting such contracts. It is essential to ascertain not only the legal position or condition of each of the parties to the contract but also that each person signing the document has necessary capacity to contract. Amongst others, the building contract must clearly describe the full names, addresses and capacities of each of the contracting parties, property, comprise construction details, time lines for completion, clauses for default, payment schedules, responsibility for obtaining municipal permits and so on.