Contract and its assential

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Contract and its assential

  1. 1. PRESENT BY SOHAIL AKHTAR Indian Contract Act, 1872
  2. 2. Agreement & Contract <ul><li>“ A contract is an agreement made between two or parties which the law will enforce” - Section 2 (h) </li></ul><ul><li>Agreement = Offer + Acceptance >> Promise (Promisee & Promisor) </li></ul><ul><li>Legal Obligation should be created </li></ul>
  3. 3. What is a Contract ? <ul><li>An Agreement </li></ul><ul><li>Enforceable by law </li></ul><ul><li>Made between atleast two parties </li></ul><ul><li>By which rights are acquired by one, & </li></ul><ul><li>Obligations are created on the part of another </li></ul><ul><li>And on failure, the other party has a remedy </li></ul>
  4. 4. Essential Elements of a Valid Contract <ul><li>Offer & Acceptance </li></ul><ul><li>Intention to create a legal relationship </li></ul><ul><li>Lawful consideration – (advantage/benefits moving to & from - between the two parties) </li></ul><ul><li>Capacity (Competency) of Parties – (age/sound mind/not disqualified to enter) </li></ul><ul><li>Free & Genuine consent of the parties – (undue influence, fraud, misrepresentation may cause absence of free consent) </li></ul><ul><li>Lawful Objects </li></ul><ul><li>Must not have been expressly declared Void </li></ul><ul><li>Certainty & possibility of performance </li></ul><ul><li>Legal Formalities </li></ul>
  5. 5. Classification of Contract <ul><li>Classification as per Validity (void/voidable/illegal/unforceable) </li></ul><ul><li>Classification as per formation (Express/Implied/Quasi) </li></ul><ul><li>Classification as per performance (Executed/Executory/Unilateral-Executed Consideration /Bilateral – Executory Consideration) </li></ul>
  6. 6. PRESENTED BY IRFAN RAZA Offer & Acceptance
  7. 7. Offer & Acceptance <ul><li>“ A person is said to have made an offer/proposal, when he “signifies to another his willingness “to do” or “not to do” (i.e. abstain from doing) anything, with a view to obtaining the ascent of that other to such act or abstinence” </li></ul><ul><li>– Section 2 (a) </li></ul><ul><li>Offerer/Proposer/Promisor </li></ul><ul><li>Offeree/Proposee/Promisee/Acceptor </li></ul><ul><li>– Section 2 (c ) </li></ul>
  8. 8. Offer - Legal Rules <ul><li>Offer must be such that is capable to be accepted in law and gives rise to legal relationship </li></ul><ul><li>Terms of offer must be definite, unambiguous and not loose & vague </li></ul><ul><li>Offer must be communicated </li></ul><ul><li>An offer must be distinguished from </li></ul><ul><li>(i) an invitation to make an offer </li></ul><ul><li>(ii) declaration of intention to offer </li></ul><ul><li>Offer must be made with a view to obtaining the ascent </li></ul><ul><li>Offer should not contain a term the non-compliance of which may be assumed to amount to acceptance </li></ul>
  9. 9. Acceptance & Legal Rules <ul><li>Acceptance is the act of assenting by the Offeree to the offeror </li></ul><ul><li>Acceptance may be express OR implied </li></ul><ul><li>Who can accept? (only the Offeree) </li></ul><ul><li>Acceptance must be legal & unqualified </li></ul><ul><li>It must be communicated to the offeror </li></ul><ul><li>It must be according to the mode prescribed </li></ul><ul><li>It must be given within a reasonable time </li></ul><ul><li>Showing intention to fulfill the terms of promise </li></ul><ul><li>It cannot be implied by silence (mere mental acceptance is no acceptance) </li></ul><ul><li>Must be given before the offer lapses </li></ul>
  10. 10. THANK YOU

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