Business Regulatory Framework

1. WELCOME 12-08-2020
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This Photo by Unknown Author is licensed under CC BY-SA

2. LAW OF CONTRACTS
• Indian Contract Act 1872
• In India , the laws relating to contract are contained in the Indian Contract Act
1872. The Act came into force on the first day of September 1872, and it applies
to the whole of India except the State of Jammu & Kashmir. The Act does not
deal withal branches of law of Contracts.
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3. MEANING AND DEFINITION OF CONTRACT
• The word Contract is derived from the Latin word “ Contractum”
which means drawn together. It denotes drawing together the
minds of two or more persons to form a common intention giving
rise to an agreement. A Contract is an agreement made between
two or more parties which the law will enforce
Definition- Section 2 ( h) of the Indian Contract Act 1872 defines” a
contract as an agreement enforceable by law”
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4. • The Term Agreement is defined as “ every
promise and every set of promises, forming the
consideration for each other”.[ Sec.2(e).
• Therefore agreement = Offer+ Acceptance
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5. 1. Agreement
2. Consideration
3. Capacity of Parties
4. Consensus ad idem
5. Lawful object
6. Legal Formalities
7. Agreement not expressly declared void
8. The performance must not be impossible
9. Free consent
10. Intention to create legal relationship
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6. AGREEMENT
A Lawful offer and
acceptance make
an agreement. An
agreement is
necessary for a
contract
Example: A sends
a proposal to B to
purchase his
house. B accepts
the proposal.
There is an
Agreement
between A and B
Agreement =
Offer+ Proposal
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7. CONSIDERATION
• Consideration is the foundation of every Contract. An agreement to
be enforceable by law must be supported by Consideration.
‘Consideration means something in return ‘
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8. CAPACITY OF PARTIES
• According to section 10 of the Indian Contract Act , only
competent persons can create valid contract.
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9. CONSENSUS AD IDEM
•This means that there must be identity of
minds. In other means , there must be
identity of minds among the parties regarding
the subject matter of the Contract
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10. • The object means the purpose for which the
agreement is entered into between parties to
the contract. In other words it means that the
object and consideration of an agreement must
not be (a) illegal, (b) immoral, (c) opposed to
public policy, (d) fraudulent, ( e) injurious to a
person or his property.
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11. DIFFERENCE BETWEEN CONTRACT AND
AGREEMENT
CONTRACT
1.Agreement and its enforceability
2.All contracts are necessarily
agreement
3.A contract creates legal obligation
AGREEMENT
• Offer and Acceptance
• Every agreement need not
necessarily be a Contract
• Agreement may not create any legal
obligation
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