overview of indian contract act

1. INDIAN CONTRACT
ACT
AN OVERVIEW OF THE INDIAN CONTRACT ACT OF
1872

2. INTRODUCTION
• The Indian Contract Act of 1872 is a piece of legislation that governs contracts in India.
It was enacted on September 25, 1872, and is based on the principles of English
common law, and it is applicable to all contracts entered into in India, irrespective of the
nature of the contract.
• The Act defines a contract as an agreement that is enforceable by law.
• The Act recognizes different types of contracts, such as express contracts, implied
contracts, void contracts, voidable contracts, unenforceable contracts, executed
contracts, and executory contracts.
• The Act also specifies the consequences of a breach of contract, including the right to
sue for damages, specific performance, and injunction.
An overview of the Indian Contract Act of 1872
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3. DEFINITION OF
CONTRACT
“All contracts
are
agreements
but all
agreements
are not
contracts.”
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 SECTION 2(H) DEFINES THE
TERM 'CONTRACT’
 AN AGREEMENT
ENFORCEABLE BY LAW
AGREEMENT = OFFER +
ACCEPTANCE

4. ESSENTIAL ELEMENTS OF A VALID
CONTRACT (SEC.10)
 Offer & acceptance.
 Capacity to contract
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 Intention to create legal
relations
 Lawful consideration
 Free consent
 Lawful object
 Legality of object.
 Possibility of
performance

5. TYPES OF CONTRACTS
 Express Contract: An express contract is a contract in which the terms are
explicitly stated in words, either written or spoken.
 Implied Contract: An implied contract is a contract in which the terms are not
explicitly stated but are implied from the conduct of the parties or the circumstances
of the situation.
 Unilateral Contract: A unilateral contract is a contract in which only one party
makes a promise or an offer, and the other party must perform a specific act to
accept the offer.
 Bilateral Contract: A bilateral contract is a contract in which both parties make
promises or offers, and both parties are obligated to perform specific acts to fulfill
their respective promises.
 Executed Contract: An executed contract is a contract in which both parties have
performed their obligations under the contract.
 Void Contract: A void contract is a contract that is not legally enforceable, either because
it is illegal or because it lacks one or more of the essential elements of a valid contract.
There are various types of contracts, some of which are:
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6. PERFORMANCE
OF CONTRACTS
Performance of a
contract refers to
the fulfillment of
the obligations
by the parties as
per the terms of
the contract.
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 COMPLETE
PERFORMANCE
 SUBSTANTIAL
PERFORMANCE
This Photo by Unknown Author is licensed under CC BY-SA

7. TERMINATION OF CONTRACTS
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 BREACH OF CONTRACT
 MUTUAL AGREEMENT
 FRUSTRATION
 IMPOSSIBILITY OF PERFORMANCE
 OPERATION OF LAW
 PERFORMANCE

8. REMEDIES FOR BREACH OF CONTRACT
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1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
When one party breaches a contract, the other party may be
entitled to a remedy, which is a legal or equitable remedy
designed to put the non-breaching party in the position they
would have been in had the breach not occurred.
 Damages : This is the most common remedy for
breach of contract.
 Specific performance: This remedy is available in
cases where damages would not adequately
compensate the non-breaching party.
 Rescission: This remedy allows the non-breaching
party to terminate the contract
 Reformation: This remedy allows the court to modify
the terms of the contract to reflect the original intent of
the parties.

9. “QUOTE”
The Indian Act has had a
devastating impact on Indigenous
communities, undermining their
self-determination and
perpetuating a cycle of poverty and
disadvantage.