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Indian contract act 1872
 

Indian contract act 1872

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Indian contract act 1872

Indian contract act 1872

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    Indian contract act 1872 Indian contract act 1872 Presentation Transcript

    • Indian Contract Act, 1872 Essential Elements
    • Valid Contract: Essential Elements
      • Proposal (Offer) & Acceptance
      • Consideration
      • Capacity of parties to Contract
      • Free Consent
      • Should not be a Void agreement
      • In Writing & Registered
      • Creates Legal Relationship
      • Certainty
      • Possibility of Performance
      • Enforceable by Law
    • Agreement (Sec. 2e)
      • Agreement : “Every promise and every set of promises, forming the consideration for each other is an agreement”
      • Proposal when accepted = Promise
      • That is, Proposal or Offer + Acceptance = Agreement
      • What are the kinds of Agreements?
      • Valid Agreement: An agreement enforceable by law.
      • Void Agreement: Not enforceable by law.
      • Enforceable Agreement: A contract enforceable by law.
      • Voidable Agreement: It is valid so long as it is not avoided by the party entitled to do so.
      • Unenforceable Agreement: It is valid but not enforceable due to some technical defect.
      • Illegal Agreement: It is void ab-initio .
    • Contract (Sec. 2h)
      • “ An Agreement Enforceable by Law is a Contract.”
      • Hence, Contract is a combination of agreement and enforceability.
      • What are the kinds of Contract?
      • Voidable Contract: It is when one of the parties has not exercised his free consent.
      • Void Contract: That which ceases to be enforceable by law becomes void.
      • Unenforceable Contract: Valid but incapable of proof, hence not enforceable.
      • Executed Contract: When parties have performed their obligations.
      • Executory Contract: When any party has not performed his share of obligation or promise.
      • Express Contract: When terms of contract are reduced in writing.
      • Implied Contract: Terms of contract inferred from conduct between parties.
      • Quasi Contract: Obligations which are not contracts but fall under the purview of law.
      • Contingent Contract: Where a promise contained in the contract is conditional.
      • Contracts of Record: Contracts made on the records of a court.
      • Specialty Contract: In writing, sealed and delivered by parties. “Contract under Seal”
      • Simple Contract: Not under seal. Made in writing or spoken words.
      • Statutory Contract: All or some terms & conditions are statutory.
    • Proposal (Sec. 2a)
      • “ When one person signifies to another his willingness to do so or to abstain from doing anything, with a view to obtaining the assent of that other to such act or abstinence he is said make a ‘proposal’.”
      • In other words, a person should offer to do something. This offer must be sufficiently communicated to the person for whom he intends to do something with a view to obtaining his assent to it.
      • Maker of the offer = Proposer = Offerer = Promisor
    • Valid Proposal: Essentials
      • Proposer cannot dictate terms.
      • Intended to create a legal relation.
      • Mere statement of intention is not a binding promise.
      • Offer must be made to definite person.
      • Offer terms must be unambiguous.
      • Offer can be expressed or implied.
      • Offer must be communicated even if conditional.
      • Proposer should intend to be bound by it.
    • Some Questions
      • What is a Counter-Offer?
      • It is a rejection of the original offer and making a new offer. New offer is a counter offer.
      • What is Auction Sales?
      • It is an invitation to an offer. Only when a buyer makes a bid for the item that there is an offer.
      • What is a Standing (or Open) Offer?
      • The continuous supply of a certain article at a certain rate over a definite period is called a standing offer. Unless there is an order there is no contract.
      • What is ‘Invitation to an Offer?
      • It is not an offer. It is only an aim to circulate information of readiness to negotiate business with anybody who comes to the person sending it.
    • Acceptance (Sec. 2b)
      • “ When the person to whom a proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal when accepted becomes a promise.”
      • To make the contract binding, there must be absolute and unconditional acceptance of the terms of a proposal.
      • Performance of conditions of a proposal is an acceptance of the proposal.
    • Valid Acceptance: Essentials
      • Must be absolute and unconditional.
      • Must be expressed in usual & reasonable manner.
      • Mental acceptance is not sufficient.
      • Must be communicated to Proposer.
      • Must be by a certain person.
      • Doing it by ignorance of proposal is no acceptance.
      • Must be given within a reasonable time.
      • Must accept the proposal.