Contract Section 2(b) defines promise in these words” when the person to whom the proposal is madesignifies his assent thereto, the proposal is saidto be accepted. Proposal when accepted ,becomes a promise.” Section 2(e) defines agreement as “everypromise & every set of promises, forming theconsideration for each other.” Section 2(h) of the act defines the term contract“as an agreement enforceable by law.”
Essential elements of avalid contract Proposal and acceptance Consideration-lawful consideration with a lawful object Capacity of parties to contract-competent parties Free consent An agreement must not be expressly declared to be void Writing and registration, is so required by law Legal relationship Certainty Possibility of performance Enforceable by law
Void contractIt is a contract without any legal effect andcannot be enforced in a court of law.Section 2(j) defines a void contract as “a contractwhich ceases to be enforceable by law becomesvoid when it ceases to be enforceable”Eg- Agreement in restraint of marriageAgreement in restraint of trade
Contingent contractThe contingent contract is all about happening or not happeningof some future uncertain event .Rules Contingent contract depends on the happening of an uncertainfuture event , cannot be forced until the event has happened If a contingent contract depends for its performance on doing ofact by the promissory, the contract becomes void where thepromissory makes the performance impossible If a contingent contract contemplates doing of a thing in aspecified event ,happens within a fixed time .It becomes void ifthe event does not happen within the time. If a contingent contract contemplates to do anything if animpossible event happens, it is void.
Unlawful/Illegal contractIt is a contract which the law forbids to bemade.The court will not only enforce such acontract but also connected contracts.Allillegal agreements are void but all voidcontracts are not necessarily illegal.E.g: Contract to commit crime Contract to destroy public property
Uncertain agreementAccording to Sec 29 “agreements, themeaning of which is not certain, or capable ofbeing made certain, are void.”Through this sec the law aims to ensure thatthe parties to a contract should be aware ofthe precise nature and scope of their naturalrights and obligations under the contract.
Wagering AgreementIt is an agreement involving payment of asum of money upon the determination of anuncertain event.The essence of a wager is that each sideshould stand to win or lose, depending on theway an uncertain event takes place.
Bibliography Mercantile law- CPT-ICAI Business law for management-K.R.BULCHANDANI Element of mercantile law- N.D.KAPOOR