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Chapter 1 contract
 

Chapter 1 contract

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    Chapter 1 contract Chapter 1 contract Presentation Transcript

    • CONTRACT AND ITS KINDS
    • DEFINITION OF CONTRACT “Every agreement and promiseenforceable at law is a contract.”Pollack “An agreement enforceable by law is acontract.” Contract Act, 1872
    • 1.Agreement “Every promise and every set of promises,forming the consideration for each other, isan agreement.” “When a proposal accepted , becomes aPromise.” A Promise come into existence, when oneparty makes proposal and other party givesConsent.
    • 2. Enforceability An agreements is enforceable if, it is recognized by the courts. Enforceability: The agreement must create legalobligations. Between the parties.
    • Types of AgreementsAGREEMENT = OFFER + ACCEPTANCE1. Social Agreements:o Not enforceableo Do not create legal obligationso Between the parties.2. Legal Agreements:o Enforceableo They create legal obligationso Between the parties.
    • Essentials of a Valid Contract1. Offer and Acceptance.Lawful offer.Lawful Acceptance.Must satisfy the requirements of Contract Act.2. Legal Obligation.Parties must Create Legal Obligations.Fails to Fulfill , liable for that.
    • 3. Free Consent. Parties Agreed upon Same thing in the same sense Not obtained byCoercion , Undue influence , FraudMisrepresentation
    • 4. Not Expressly DeclaredVoid.Expressly declared void by the law.e.g. Restraint to Trade.
    • 5. Lawful Consideration.Something given or obtainedSome benefit to the other partyMust be lawful6. Capacity of Parties.Competent to ContractAge of Majority,Sound Mind,Not Disqualified
    • 7. Writing and Registration.Oral and WrittenWritten Easy to prove in the Court.Registration and Witnesses8. Certainty of Terms.Clear , Complete and Certain.Other wise becomes Void.
    • 9. Possibility of Performance.Capable of Being Performed.Legally and Physically Performed.10. Lawful Object.Made for lawful Object.Illegal, public policy against , injury , Fraud.
    • KINDS OF CONTRACT According to Enforceability.VALID CONTRACTEnforceable.All Essentials Present.Legal ObligationBreach of Contract – Remedies
    • VOIDABLE CONTRACTEnforceable at the option of theParties Consent of the Parties is NotFree. Avoid - Void Confirm - Valid.
    • VOID CONTRACT. Void means Not Binding in Law. Not Void From the Beginning Subsequently becomes void due tosome Reasons.
    • UNENFORCEABLECONTRACT Cannot be Enforced Technical DefectsILLEGAL AGREEMENTIts Performance Forbidden by Law.If Permitted it will defeats the Provisionsof Law.
    • VOID AGREEMENTSNot Enforceable by lawDoes not create legal obligationsVoid ab initioExcept Free Consent EssentialsMissingE.g. Minor and With out Consideration
    • Conclusion Contract, an agreement which isenforceable by the law. Legal agreements are essential for thecommercial/Business transactions. Fulfilling the Essentials of valid Contractis mandatory for the purpose of itsenforceability.