Brief explanation about Indian contract act 1872,Essential requirements of contract,essential elements of valid contract,difference between agreement and contract.

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Indian contract act ,1872
PRESENTED BY:
JASIYA BEGUM(MBA)

3. INTRODUCTION:
 This act contains description of contract.
 This act was passed by British India
 This act came into force on September,1,1872 .
 Under Section 2(h), the Indian Contract Act defines
a contract as an agreement which is enforceable by
law.

4. CONTRACT:
An agreement which is enforceable by law.
CONTRACT=Agreement + Enforceable by law

5. AGREEMENT:
An offer when accepted becomes an agreement.
AGREEMENT = OFFER + ACCEPTANCE.

6. OFFER:
Section 2(a) “When one person signifies to another his willingness to do or to
abstain from doing anything, with a view to obtaining the assent of that other to
such act , he is said to make a Proposal”.
 Sec2(c)The person who is making the proposal is called offeror or promisor or
proposer
 Sec2(c)The person accepting the proposal is called as offeree or promise.
For example, “A” made an offer to” B” to buy the house. Here “A” is the offeror or
promisor or proposer and “B” is the offeree or promise.

7. Acceptance:
Section2(b)When the person to whom the proposal is made, signifies his
assent there to, the proposal is said to be accepted.

8. ESSENTIALS REQUIRED FOR CONTRACT:
 Two parties
 An agreement
 Legal obligations.
Agreements relating to social matters.
Domestic agreements between husband and wife.

12. Void:
Not an actual contract and is unenforceable.
Valid:
Legally binding and enforceable in a court of law.

13. ESSENTIAL ELEMENTS OF VALID CONTRACT:
 Offer and acceptance
 Intension to create legal relationship
 Lawful consideration
 Competence of parties to contract
 Free consent
 Lawful object
 Agreement not declared as void
 Certainty and possibility of performance
 Legal formalities