2. Valid,Void and Voidable contract
• The circumstances under which a contract
valid at the time of formation becomes void
are
• 1. Destruction of subject matter
• 2. Death of the parties
• 3. Contract becoming unlawful
• 4.One or more parties becoming unsound
• 5.Alien Enemy
3. Void and Illegal agreement
1.A void agreement is not necessarily
illegal
1.All illegal agreements are void
2.Agreements collaterals to void
agreements are valid
same
The benefit received has to be restored
to the other party
The money advanced or thing given cant
be claimed back.
4. Distinction between Void and voidable
contract
Distinction Void Co Voidable Contracts
1.Enforceability It is not enforceable at the instance of either party
It is enforceable at the
instance of the party entitled
to avoid it
2. Third Party
rights
A third party who purchased goods which have been
the subject matter of a void contract will acquire no
title of it.
Acquires a good title,
provided it takes place
before it is avoided
3.Compensatio
n No question of performance arises
The agrived party is entitled
to losses suffered on account
of cancelation
5. Proposal/Offer&Acceptence
• Proposal:Sec-2(a)-(a) When one person
signifies to another his willingness to do or to
abstain from
• doing anything, with a view to obtaining the
assent of that other to such act or
• abstinence, he is said to make a proposal
• Ex-Positive Act-
• Abstinence-
6. Elements of Proposal
• It must be made to another person
• It must be made to obtain the assent of that
other person to such act or abstinence.
• The offer must be definite
• The offer must be commun icated to offeree
• Offerer and offeree
8. Classification of Offer
• 1. General Offer-It is ann offer made to the
public in general and hence anyone can accept
and do the desired act.Carlill vs Carbolic
smoke ball co.
• 2.Specific offer-When offer is made to definite
person,it is known as specific offers and only
specified person can accept the offer.
• (Bottom vs johns)
9. Classification of Offer
• Cross Offers-When two parties excahange
identical offers in ignorence at the tome of each
other offer are called cross offers.There is no
binding contract in this case as acceptence is
missing.(Tin vs Haffmen &co 1873)
• 4.Counter Offer-When the offree offers to
qualified acceptence of the offer subject to
modifications and variations in the trems of the
original offre,he is said to have a made a counter
offer.
10. Classification of Offer
• 5. Standing, open or continuing offer-An offer
allowedto remain open for acceptence over a
period of time is known as standing,open or
continuing offer.Ex tender for supply of goods i
11. Characteristics of a Valid Offer
• The terms of the offer must be certain. The
terms shall not be ambiguous, that is capable
of more than one meaning.
• Sec-29 Illustration-Oil ,coconut oil
• 29. Agreements void for uncertainty
• Agreements, the meaning of which is not
certain, or capable of being made certain,are
void.
12. Characteristics of a Valid Offer
• A mere supply of information doesn’t amount to
an offer and cannot result into contract even if
acted upon.
• Ex-Harvey vs Facey
• Bumper hall pen land deal.Min quoted price
• Lacks of willingness to sell to B
• 3.An offer must be distiquisehded from an
invitation to an offer.eg goods displayed in mall
window are not offer for sale. (Fisher vs Bell case)
• Flick Knife was displayed in shop-window
13. Characteristics of a Valid Offer
• 4.An offer must be communicated to the
offeree.
• Lalman vs GowriDutt Facts and Held
14. General OFFER
• This is an offer made to the world at large.
• Carlill vs Carbolic Smoke ball co.
• Co introdued a new drug as a prevention of
influenza and ready to pay a reward of 100
pounds who contracted the disease after
following all given instructions.
• 1.The company contended that it could not have
enter into a contract with whole world
• 2.The acceptance had not been communicated to
the company.
15. Essentials of the offer
• Offer must intent to create legal relations
• Terms of the offer must be certain, definite, not vague.
• A offers lavish entertsinment
• The offer must be distinguisehd froam a mere declaration
of intention.
• Offer must be distinguished from an invitation to offer
ex.Auction slae doesn’t happen,no claim for time
• Offer must be distinguished from invitation to offer
• Eg..Quotation of lowest prices, railway time table,
prospectus issued by company
• The offer must be communicated
• Offer must be made with a view to obtain assent
16. Essentials of the offer
• Offer should not contain any term the non
compliance of which would amount to
acceptence
• Special terms and conditions in an offermust
also be communicated
• Eg A to B –I will sell my car for 1 lakh.I will wait
for a week,if you don’t reply,it will assmed as
the acceptence.NO
17. QnA
• 1. A offers to sell horse to B accepts. But horse
dies before delivery.
• A offers to marry C’s daughter for
consideration of Rs 20 Lakh.But later
refused.Can C enforce the same in court.
