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Merchantile law - Unitedworld School of Business
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Merchantile law - Unitedworld School of Business






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Merchantile law - Unitedworld School of Business Merchantile law - Unitedworld School of Business Presentation Transcript

  • Nature and Type of Contracts
  • 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
  • ThankYou