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1 contract definition


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1 contract definition

  1. 1. Contract Law- Definitions Sujith Surendran
  2. 2. Definitions  S 2(h) of Indian Contract Act 1872 “An agreement enforceable by law is a contract”  Anson, Law of Contract “A legally binding agreement between two or more persons, by which rights are acquired by one or more, to an act or forbearance on the part of the other or others”
  3. 3. Definitions Cont..  S. 1, Restatement Second of the Law of Contracts, American Law Institute. “A contract is a promise or set of promises for the breach of which the law gives a remedy, or performance of which the law in some way recognises as a duty”  Halsbury’s Laws of England “An agreement made between two or more persons, which is intended to be enforceable at law”
  4. 4. Definition- Contract Act 1872  “An agreement enforceable by law” (Sec. 2(h)) 1. Agreement 2. Enforceable by law  Agreement (Sec. 2 (e))  “Every promise and every set of promises forming the consideration for each other”  Promise (Sec.2 (b))  “A proposal, when accepted, becomes a promise.”
  5. 5. Definition- Contract Act 1872  Or a promise is an accepted proposal. Hence,  A contract = Agreement (Enforceable) = A proposal from one side and accepted from the other.
  6. 6.  Meaning Of „Proposal‟ [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 or abstinence, he is said to make a proposal.  Expressing the willingness  With a view to obtain the assent of the other.
  7. 7.  Thus, a „proposal‟ can be to do a positive act or abstinence from act (i.e. negative act).  English Act uses the word „offer‟, while Indian Contract Act uses the word „proposal‟.  Generally, both words are used inter-changeably. This is not technically correct, as the word „offer‟ is not used in Contract Act.
  8. 8.  Meaning Of „Promise‟ [Section 2(b)]  When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted.  A proposal, when accepted, becomes a promise.
  9. 9.  Thus, when a proposal (offer) is accepted, it becomes a „promise‟.  As is clear from the definition, only person to whom proposal is made can signify his assent.  Other person cannot accept a proposal.
  10. 10.  Promisor And Promisee. [section 2(c)]  The person making the proposal is called the “promisor”, and the person accepting the proposal is called the “promisee”.  Reciprocal Promises [Section 2(f)]  Promises which form the consideration or part of the consideration for each other are called reciprocal promises.
  11. 11.  Consideration-[Sec.2(d)]  When, at the desire of the promisor, the promisee or any other person, has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing, something, such Act or abstinence or promise is called a consideration for the promise.