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Contract act.. Presentation Transcript

  • 1.  INTRODUCTION OF LAW” “DEFINITION” The INDIAN CONTRACT ACT,1872 “OBJeCT OF LAW OF CONTRACT” …….
  • 2.  Man, A social being, hence gets into various contacts or associations; These are inevitable consequence of modern civilization; Man is expected to observe A code of conduct or A set of rules; Object is to make human associations possible and conducive to the welfare of the state and its people.
  • 3.  Man’s perspective influences his notions about law and such its meaning; Single, accurate definition of law not possible as such it is often preceded by an adjective to give A more precise meaning; Law includes all the rules and principles which regulate our relations with other individuals and with the state; Law ordains, directly or indirectly, implicitly or explicitly,
  • 4.  Agreement and its enforceability – every promise and every set of promises, forming consideration for each other; [sec.2(e)] Agreement = offer + acceptance Obligation – legal tie which imposes performance as promised; Agreement is a very wide term – social or legal; contract = agreement + enforceability Salmond-an agreement creating and defining obligation between the parties
  • 5.  A contract is an agreement made between two or more parties which the law will enforce. Sec 2 H, defines A contract as an agreement enforceable by law one or more. Sir William Anson defines a contract as a “legally binding agreement between two or more person by which rights are acquired by one or more to acts or forbearances on the part of others”
  • 6. The law relating to contracts is contained in Indian contract act,1872 the act deals with-- The general principal of the law of contract [sec 1 to 75] The act does not affect any usage or custom of trade[sec 1.Para’1]
  • 7. “OBJECT OF LAW OF CONTRACT” That branch of law which determines the circumstances in which promises made by the parties to A contract shall be legally binding on them; Defines the ‘remedies’ and ‘conditions under which the remedies’, that are available against the defaulter; Introduces definiteness in business transactions; Sir William Anson- is intended to ensure what A man has been led to expect shall come to be performed as promised.
  • 8.  Contract law does not lay down a number of rights and duties which the law will enforce; Consists rather of a number of limiting principles; Subject to which the parties may create rights and obligations for themselves which the law will uphold; Law of contract is not the whole law of agreements nor the whole law of obligations, they are therefore, not contracts; Law of contract creates jus in personal(right against or in respect of a specific person) as distinguished from jus in rem.
  • 9.  Acc to sec 10, “all agreements are contracts if they are made by the free consent of the parties. Sec 13 and 14 define free consent. As per sec 13, ‘two or more persons are said to consent when they agree upon the same thing in the same sense.”
  • 10.  Sec 14 defines, “free consent” as follows. Consent is said to be free when it is not caused by—  Coercion, as defined in sec 15, or  Undue influence, as defined in sec 16, or  Fraud, as defined in sec 17, or  Misrepresentation, as defined in sec 18, or  Mistake, subject to the provisions of sec 20, 21 and 22.
  • 11.  Is the committing or threatening to commit, any act forbidden by the indian penal code or the unlawful detaining, or threatening to detain, any property, to the prejudice of any person whatever, with the intention of causing any person to enter into an agreement. Coercion includes so many things such as fear, a threat to beat, physical compulsion, meanance to goods, a threat to commit suicide.
  • 12. A contract is said to be induced by undue influence” where the relation between the parties are such that one of the parties in position to dominate the will of the other and uses that position to obtain an unfair advantage over the other. A person is deemed to be in position to dominate the will of other: -where he stands in fiduciary relation to the other. -where he makes a contract with a person whose mental capacity is temprorariy or permanently affactead by reason of age, illness,or mental or body distress Sometimes undue influence also called moral coercions.
  • 13.  Acc to sec 17, “fraud means and includes any of the following acts committed by A party to A contract, or with his connivance, or by his agent, with intent to deceive another party thereto or his agent, or to induce him to enter the contract:-  Suggestion of that which is not true, by one who does not believe it to be true;  Active concealment of facts by one having knowledge or belief or the fact;  A promise made without any intention of performing it;  Any other act fitted to deceive;  Any such act or omission as the law declares it fraudulent,
  • 14.  Positive assertion, in A manner not warranted by the information of the person making it, of that which is not true, though he believes it to be true; Any breach of duty, which without intent to deceive, gains an advantage to the person committing it, or any one claiming under him, by misleading another to his prejudice, or to the prejudice claiming under him; Causing, however innocently, A party to an agreement, to make A mistake as to the substance of the thing which is the subject of the agreement.
  • 15.  Acc to sec 20, “where both the parties to the agreement are under A mistake as to A matter of fact essential to the agreement, the agreement is void.” Mistake of two types – mistake of law and mistake of facts. Where both the parties to an agreement are under a mistake as to a matter of fact essential to an agreement, the agreement is void. Both the parties must be under mistake and the mistake must relate to A matter of fact essential to the contract; A mistake by one of the parties also not affect the validity of the contract.
  • 16. All agreements entered into are not enforceable bylaw. The agreement which are not enforceable by laware said to be void [sec 2(g)] such agreements do notgive rise to any legal consequences. All agreementwhich are opposed to public policy are void.
  • 17.  Agreements by incompetent parties [sec 11]. Agreements made under mutual mistake of facts [sec 20]. Agreements, the consideration or object of which is unlawful [sec 23]. Agreements entered into without any consideration [sec25]. Agreements made in restraint of marriages [sec 26].
  • 18.  Agreements made in restraint of trade ,business, occupation [sec 27]. Agreements in restraint of legal proceeding [sec 28]. All Agreements, the meaning of which is not certain [sec29]. Wagering agreements [sec 30]. Agreements contingent on impossible events [sec 36]. Agreements to do an act impossible in itself [sec 56].
  • 19.  Where there is A right, there is A remedy; A contract gives rise to correlative rights and obligations; Right accruing to A party is of no use, if there is no remedy to enforce the right breached or infringed; A remedy is the means given by law for the enforcement of A right infringed; When breach to A contract occurs it causes injury or loss to the aggrieved party.
  • 20. “Remedies foR BReach of a contRact”An aggrieved party has certain remedies against the guiltyparty there is A breach of contract. The remedies are asfollows :-- Recession of the contract : revocation or setting aside of the contract Suit for damages : damages means monetary compensation payable by the defaulting party Quantum meruit : as much earned – compensate for the part performed in case of breach
  • 21.  Suit for specific performance : where award of damages is not considered an adequate remedy then the court of law can order performance as promised Suit for injunction :an injunction is an order to the court asking A person to do or abstain from doing A particular act, which in fact, the subject matter of the contract