Concept of ethics Ethical behavior Ethical dilemma in organization Ethics in different management practices Corruption & ethics
General principles of the law of contract Specific kinds of contract
“ An agreement enforceable by law is an contract”1. An agreement2. Legal obligationAgreement- “ Every promise and every set of promises forming the consideration for each other, is an agreement”.Promise- “ A proposal when accepted, becomes a promise”An agreement, therefore comes into existence when one party makes a proposal or offer to other party and the other party signifies his assent
Plurality of persons- there must be two or more persons to make an agreementConsensus-ad-item- both the parties to an agreement must agree on the subject matter of the agreement in the same sense and at the same time.2. Legal obligation- An agreement to become a contract must give rise to a legal obligation i.e. duty enforceable by law
Offer & acceptance Intention to create legal relations Lawful considerations Capacity of parties Free consent Lawful object Writing & registration Certainty Possibility of performance Not expressly declared void
There must be „lawful offer‟ and a „lawful acceptance‟
There must be an intention among the parties that the arrangement should be attached by legal consequences & create legal obligations
Consideration can be defined as the price paid by one party for the promise of the other. An agreement is legally enforceable only when each of the parties to it gives something & gets something
The parties to an agreement must be competent to contract, otherwise it cannot be enforce by a court of law. In order to be competent to contract the parties must be of the age of majority and of sound mind and must not be disqualified from contacting by any law to which they are subject.
Consent means that the parties must have agreed upon the same thing in the same sense, if the agreement is inducted by (i) coercion, (ii) undue influence (iii) fraud, (iv) misinterpretation, (v) mistake then it is a void contract.
For the formation of a valid contract it is also necessary that the parties to an agreement must agree for a lawful object
According to the Indian Contract act, a contract may be oral or in writing . But in certain special cases it lays down that the agreement, to be valid, must be in writing or/ and registered
Agreements , the meaning of which is not certain or capable of being made certain, are void.
If an act is impossible in itself, physically or legally, the agreement cannot be enforced by law.
The agreement must not have been expressly declared to be void under the Act.
From the point of view of enforceability Valid contract Voidable contract Void contract Unenforceable contract Illegal or unlawful contract
A valid contract is an agreement enforceable by law when all the essential elements of a valid contract are present
Usually a contract becomes voidable when the consent of one of the parties to the contract is obtained by coercion, undue influence, misinterpretation or fraud
It implies a useless contract which has no legal effect at all. A contract which ceases to be enforceable by law becomes void, when it ceases to be enforceable.Reasons for a void contract are: Supervening impossibility Subsequent illegality Repudiation of a voidable contract In the case of a contract contingent on the happening of an uncertain future event, if that event becomes impossible
One which is valid in itself, but is not capable of being enforced in a court of law because of technical defect such as absence of writing, registration, requisite stamp, etc or time barred by the law of limitation.
It is a contract that has an illegal agreement
From the point of view of mode of creation Express contract Implied contract Constructive or quasi contract
Where both the offer and acceptance constituting an agreement enforceable at law are made in words spoken or written
Where both the offer and acceptance constituting an agreement enforceable at law are made otherwise than in words, i.e by acts and conduct of the parties, it is an implied contract
A contract that does not arise by virtue of any agreement, express or implied between the parties but the law infers or recognizes a contract under special circumstaances
From the point of view of the extent of execution Executed contract Executory contract
A contract is said to be executed when both the parties to a contract have completely performed their share of obligation and nothing remains to be done by either party under the contract
A contract is said to be executory when either both the parties to a contract still have to perform their share of obligation or there remains something to be done under the contract on both sides
“An agreement enforceable by law is an contract”. Discuss the definition “All contracts are agreements, but all agreements are not contracts”. Discuss Discuss the essential elements of a valid contract What do you understand by the terms „void‟ and „voidable‟ contracts. Distinguish between:a) Void and voidable contractb) Implied contract and quasi contractc) Executed contract and bilateral contract