This slide is regarding the basis and nature of contract. To understand in a easy way with simple case law go with my slide.

2.  basis of a contract is agreement between
parties
 Offer
 Acceptance
 Consideration
 Intention to create legal relation
 Capacity
 Mutual consent
 Legality (writing)

3.  The Indian contract Act, 1872 has 238 section
altogether
 Sections 1 to 75 came into force on
September 1,1872.
 The law of contract deals with agreement
which can be enforced through court of law
 Important part of commercial law
 Agreement between two parties

4.  The term ‘contract –is derived from Latin
term “contractum” –means : drawn together
 Salmond :contract as an agreement creating
an definding obligation
 Anson :A legally binding agreement between
2 or more parties.
 An agreement enforceable by law is contract
 An agreement not enforceable by law is said
to be void U/S :23 void agreements.

5.  Every promise and every set of promises
forming the consideration for each other
1. A promise is defined as an accepted
proposal
2. Section 2(b) says : “A proposal, when
accepted, becomes a promise.
3. The person who is making the proposal is
called the ‘promisor ‘
4. The person who is accepting the proposal is
called ‘’promisee’’.

6.  A proposal and its acceptance is the
universally acknowledged process for the
making of an agreement
 The proposal is the starting point.
 The terminology of section 2(c) explain about
the promisor and promisee
 Promisor or offeror
 Promisee or offeree

7.  Communication of proposal. Sec 3 recognises
the modes of communication.
 Communication, acceptance and revocation
of proposal.
 Promises, express and implied
 Express contract :
An exchange of promises in which the terms
by which the parties agree to be bound are
declared either orally or in writing, or
combination of both at the time it is made.

8.  IMPLIED CONTRACT:
 An implied contract is a contract that
exists based on the actions of those involved.
Though it is not a Written or spoken
contract, it is just as legal.
 Based on the behaviors of the parties to it.

9.  S.M. GOPAL CHETTY Vs. RAMAN,AIR 1998
Mad., Every agreement has not to be in
writing .
 It must be bilateral.(involving two side
parties )
 BALFOUR Vs. BALFOUR : arrangement
between husband and wife are not generally
contract as the parties do not intend to be
legally bound by the agreements
 TWEDDLE Vs. ATKINSON 1861: NO
enforcement claim failed.

10.  Sec: 10 capacity of contract
 According to this sections every person is
competent to contract who is the age of
majority
 Sound mind
 PERSONS DISQUALIFIED BY LAW:
1. MINOR
2. PERSON WITH UNSOUND MIND
 Lunatics
 idiots drunkards

11.  CONTRACTS are not only applicable to
business but also of our everyday life.
 A contract is made out of the simple act of
purchasing a newspapers, using credit card
to by dress or paying a parking fee etc
 Other contracts such as sale and purchase of
property are more complex, require formal
written documents.