The document provides information about a presentation on the Indian Contract Act of 1872. It was presented by several students under the guidance of Prof. Sarita Patil. The summary discusses the key aspects of a contract according to the Indian Contract Act, including offer and acceptance, consideration, consensus ad idem, capacity of parties, lawful object and consideration, and essential elements. It also covers different types of contracts such as express/implied, valid/void/voidable, and illegal contracts. In under 3 sentences, the document summarizes the essential elements of a valid contract according to the Indian Contract Act and provides an overview of the presentation topics on different types of contracts.

1. PRESENTED BY- NITEEN. P
PRESENTED BY- NITEEN. P
KUSHAL. M
KUSHAL. M
LAXMI. B
LAXMI. B
VINAYAK . V
VINAYAK . V
PRESENTATION ON
PRESENTATION ON
CONTRACT
CONTRACT
ACT,1847
ACT,1847
UNDER THE GUIDANCE- PROF. SARITA PATIL

2. CONTENT
CONTENT

3. Business law is a rule which helps us to regulate and manage
Business law is a rule which helps us to regulate and manage
our business transactions and activities system. It has direct relation
our business transactions and activities system. It has direct relation
with trade, industry and commerce. e.g. insurance act, contract act,
with trade, industry and commerce. e.g. insurance act, contract act,
tax act, sale of goods act, agency act etc.
tax act, sale of goods act, agency act etc.
Business Law
Business Law

5. The Indian Contract Act consists of the following two parts:
The Indian Contract Act consists of the following two parts:
Enacted by
Enacted by Parliament of India
Parliament of India
Date enacted
Date enacted 25 April 1872
25 April 1872
Date commenced
Date commenced 1 September 1872
1 September 1872
Total sections
Total sections 238
238
Extent
Extent All States of India except
All States of India except
the State of Jammu & Kashmir
the State of Jammu & Kashmir
INDIAN CONTRACT ACT, 1872
INDIAN CONTRACT ACT, 1872

6. What is a Contract?
What is a Contract?
An agreement which is legally enforceable alone is a contract.
An agreement which is legally enforceable alone is a contract.
Agreements which are not legally enforceable are not contracts but
Agreements which are not legally enforceable are not contracts but
remain as void agreements which are not enforceable at all or as
remain as void agreements which are not enforceable at all or as
voidable agreements which are enforceable by only one of the parties
voidable agreements which are enforceable by only one of the parties
to the agreement
to the agreement.
“
“All contracts are agreements, But all agreements are not contracts.”
All contracts are agreements, But all agreements are not contracts.”

7. OFFER/PROPOSAL
OFFER/PROPOSAL ACCEPTANCE
ACCEPTANCE PROMISE
PROMISE

8. Offer/Proposal sec 2(a)
Offer/Proposal sec 2(a) - When one person signifies to another his
- When one person signifies to another his
willingness to do or to abstain from doing anything, with a view to
willingness to do or to abstain from doing anything, with a view to
obtaining the assent of that other person either to such act or abstinence,
obtaining the assent of that other person either to such act or abstinence,
he is said to make a proposal.
he is said to make a proposal.
Acceptance sec 2(b)
Acceptance sec 2(b) - When the person to whom the proposal is made,
- When the person to whom the proposal is made,
signifies his assent there to , the proposal is said to be accepted.
signifies his assent there to , the proposal is said to be accepted.
Promise sec 2(b)
Promise sec 2(b) - A Proposal when accepted becomes a promise. In
- A Proposal when accepted becomes a promise. In
simple words, when an offer is accepted it becomes promise.
simple words, when an offer is accepted it becomes promise.
Promisor and promise sec 2(c)
Promisor and promise sec 2(c) - When the proposal is accepted, the
- When the proposal is accepted, the
person making the proposal is called as promisor and the person
person making the proposal is called as promisor and the person
accepting the proposal is called as promisee.
accepting the proposal is called as promisee.

9. PROMISE
PROMISE
CONSIDERATION
CONSIDERATION
AGREEMENT
AGREEMENT

10. Consideration sec 2(d)
Consideration sec 2(d) - When at the desire of the promisor, the
- When at the desire of the promisor, the
promisee or any other person has done or abstained from doing
promisee or any other person has done or abstained from doing
something or does or abstains from doing something or promises to do
something or does or abstains from doing something or promises to do
or abstain from doing something, such act or abstinence or promise is
or abstain from doing something, such act or abstinence or promise is
called a consideration for the promise.
called a consideration for the promise.
Price paid by the one party for the promise of the other Technical word
Price paid by the one party for the promise of the other Technical word
meaning
meaning QUID-PRO-QUO
QUID-PRO-QUO i.e. something in return.
i.e. something in return.
Agreement sec 2(e)
Agreement sec 2(e) - Every promise and set of promises forming the
- Every promise and set of promises forming the
consideration for each other.
consideration for each other.

11. Contract sec 2(h)
Contract sec 2(h) - An agreement enforceable by Law is a contract.
- An agreement enforceable by Law is a contract.
AGREEMENT
AGREEMENT ENFORCEABLE BY LAW
ENFORCEABLE BY LAW CONTRACT
CONTRACT

13. As per Section 10 “All agreements are contracts, if they are
As per Section 10 “All agreements are contracts, if they are
made – by free consent of the parties, competent to contract,
made – by free consent of the parties, competent to contract,
for a lawful consideration and with a lawful object, and not
for a lawful consideration and with a lawful object, and not
hereby expressly declared to be void .”
hereby expressly declared to be void .”
ESSENTIALS OF A VALID CONTRACT
ESSENTIALS OF A VALID CONTRACT

14. ESSENTIAL ELEMENTS OF A VALID CONTRACT
ESSENTIAL ELEMENTS OF A VALID CONTRACT
•
• Offer and acceptance
Offer and acceptance
•
• Legal relationship
Legal relationship
•
• Consensus - ad-idem
Consensus - ad-idem
•
• Free consent.
Free consent.
•
• Capacity or competency of parties
Capacity or competency of parties
•
• Lawful object
Lawful object
•
• Lawful consideration
Lawful consideration
•
• Certainty and possibility of performance
Certainty and possibility of performance
•
• Agreements not declared to be void
Agreements not declared to be void
•
• Legal formalities
Legal formalities

15. Offer and Acceptance
Offer and Acceptance: In order to create a valid contract, there must
: In order to create a valid contract, there must
be an agreement between two parties. An agreement involves a
be an agreement between two parties. An agreement involves a
valid offer by one party and valid acceptance of the same by the
valid offer by one party and valid acceptance of the same by the
other party.
other party.
CASE: BOULTON (vs) JONES.
CASE: BOULTON (vs) JONES.
CASE: HARVEY (vs) FACEY.
CASE: HARVEY (vs) FACEY.
Legal relationship
Legal relationship: The parties must intend their agreement to result in
: The parties must intend their agreement to result in
legal relations. This means that the parties must intend that if one of
legal relations. This means that the parties must intend that if one of
them falls to perform his promise, he shall be answerable for that failure
them falls to perform his promise, he shall be answerable for that failure
in law. Duties and rights should be legal and not merely moral. [an
in law. Duties and rights should be legal and not merely moral. [an
agreement of a purely domestic or social nature is not a contract ]
agreement of a purely domestic or social nature is not a contract ]
CASE: WEEKS (vs) TYBALD - 1905
CASE: WEEKS (vs) TYBALD - 1905
CASE: BALFOUR (vs) BALFOUR - 1919
CASE: BALFOUR (vs) BALFOUR - 1919

16. Consensus-ad-idem
Consensus-ad-idem: The minds of both the parties must be ad-idem. In
: The minds of both the parties must be ad-idem. In
other words, the tow parties must have agreed about the subject
other words, the tow parties must have agreed about the subject
matter of the contract at the same time and in the same sense.
matter of the contract at the same time and in the same sense.
Free consent (Permission or Willingness):
Free consent (Permission or Willingness): An agreement must have
An agreement must have
been made by free consent of the parties. consent is said to be free
been made by free consent of the parties. consent is said to be free
when it is not caused by coercion, undue influence, fraud,
when it is not caused by coercion, undue influence, fraud,
misrepresentation or mistake.
misrepresentation or mistake.
CASE: RANGANAYAKAMA (vs) ALWAR SETHI
CASE: RANGANAYAKAMA (vs) ALWAR SETHI

17. Capacity :
Capacity : The parties to a contract must have capacity (legal ability) to
The parties to a contract must have capacity (legal ability) to
make valid contract.
make valid contract.
Section 11:- of the Indian contract Act specify that every person is
Section 11:- of the Indian contract Act specify that every person is
competent to contract provided.
competent to contract provided.
 Is of the age of majority according to the Law which he is subject
Is of the age of majority according to the Law which he is subject
 Who is of sound mind and
Who is of sound mind and
 Is not disqualified from contracting by any law to which he is subject.
Is not disqualified from contracting by any law to which he is subject.
Lawful object :
Lawful object :The object of agreement should be lawful and legal.
The object of agreement should be lawful and legal.
Consideration or object of an agreement is unlawful if it
Consideration or object of an agreement is unlawful if it
is forbidden by law; or
is forbidden by law; or
is of such nature that, if permitted, would defeat the provisions of any law; or
is of such nature that, if permitted, would defeat the provisions of any law; or
is fraudulent; or
is fraudulent; or
Involves or implies, injury to person or property of another; or
Involves or implies, injury to person or property of another; or
Court regards it as immoral, or opposed to public policy
Court regards it as immoral, or opposed to public policy.
.

18. Lawful consideration :
Lawful consideration : All contracts must be supported by consideration.
All contracts must be supported by consideration.
Consideration means “something in return” (quid pro quo). It can be cash,
Consideration means “something in return” (quid pro quo). It can be cash,
kind, an act or abstinence. It can be past, present or future. However,
kind, an act or abstinence. It can be past, present or future. However,
consideration should be real and lawful.
consideration should be real and lawful.
A consideration must not be unlawful, immoral or opposed to the public
A consideration must not be unlawful, immoral or opposed to the public
policy
policy.
Not expressly declared to be void
Not expressly declared to be void
Possibility of performance
Possibility of performance
Necessary legal formalities
Necessary legal formalities
•A contract may be oral or in writing
A contract may be oral or in writing

19. ELEMENTS OF A VALID CONTRACT
ELEMENTS OF A VALID CONTRACT
CONSIDERATION
CONSIDERATION
AGREEMENT
AGREEMENT
REALITY OF
REALITY OF
CONSENT
CONSENT
CAPACITY
CAPACITY
LEGALITY
LEGALITY
BARGAINED
BARGAINED
FOR
FOR
ACCEPTANCE
ACCEPTANCE
LEGAL
LEGAL
DETRIMENT/
DETRIMENT/
LAWFUL
LAWFUL
OFFER
OFFER SUBJECT
SUBJECT
MATTER
MATTER
OBJECTIVE
OBJECTIVE
not valid
not valid
• FRAUD
FRAUD
• MISREPRESENTATION
MISREPRESENTATION
• DURESS
DURESS
• UNDUE INFLUENCE
UNDUE INFLUENCE
• MUTUAL MISTAKE
MUTUAL MISTAKE
not valid
not valid
•INFANTS
INFANTS
•MENTAL
MENTAL
•DRUNKARDS
DRUNKARDS
•CORPORATIONS
CORPORATIONS
WRITING
WRITING
Review
Review
Legal relationship
Legal relationship
Two parties
Two parties

20. TYPES OF CONTRACT
TYPES OF CONTRACT

21. ON THE BASIS OF CREATION
ON THE BASIS OF CREATION
Express Contracts:
Express Contracts: Where the terms of the contract are expressly agreed
Where the terms of the contract are expressly agreed
upon in words (written or spoken) at the time of formation, the contract
upon in words (written or spoken) at the time of formation, the contract
is said to be express contract.
is said to be express contract.
Implied Contracts:
Implied Contracts: Implied contracts in contrast come into existence by
Implied contracts in contrast come into existence by
implication.
implication.
Most often the implication is by law and or by action.
Most often the implication is by law and or by action.

22. Tacit Contracts
Tacit Contracts:
: Tacit contracts are those that are inferred through the
Tacit contracts are those that are inferred through the
conduct of parties.
conduct of parties.
Quasi Contracts:
Quasi Contracts: A quasi contract is created by law. Thus, quasi
A quasi contract is created by law. Thus, quasi
contracts are strictly not contracts as there is no intention of parties to
contracts are strictly not contracts as there is no intention of parties to
enter into a contract. It is legal obligation which is imposed on a party
enter into a contract. It is legal obligation which is imposed on a party
who is required to perform it
who is required to perform it

23. ON THE BASIS OF VALIDITY
ON THE BASIS OF VALIDITY
Valid contract :
Valid contract : An agreement which has all the essential elements of a
An agreement which has all the essential elements of a
contract is called a valid contract. A valid contract can be enforced by law.
contract is called a valid contract. A valid contract can be enforced by law.
Void contract (2(j) :
Void contract (2(j) : "A contract which ceases to be enforceable by law
"A contract which ceases to be enforceable by law
becomes void when it ceases to be enforceable". Thus a void contract is
becomes void when it ceases to be enforceable". Thus a void contract is
one which cannot be enforced by a court of law.
one which cannot be enforced by a court of law.
Under a mistake of facts [20]
Under a mistake of facts [20]
Consideration or object of an agreement is unlawful [23]
Consideration or object of an agreement is unlawful [23]
Agreement made without consideration [25]
Agreement made without consideration [25]
Agreement in restrain of marriage [26]
Agreement in restrain of marriage [26]
Restraint of trade [27]
Restraint of trade [27]
Restrain legal proceeding [28].
Restrain legal proceeding [28].
Agreement by wage of wager [30]
Agreement by wage of wager [30]

24. Voidable contract Section 2[i]
Voidable contract Section 2[i] : Defines that an agreement which is
: Defines that an agreement which is
enforceable by law at the option of one or more parties but not at the
enforceable by law at the option of one or more parties but not at the
option of the other or others is a voidable contract.
option of the other or others is a voidable contract.
Result of coercion, undue influence, fraud and misrepresentation.
Result of coercion, undue influence, fraud and misrepresentation.
Unenforceable contract :
Unenforceable contract : Where a contract is good in substance but
Where a contract is good in substance but
because of some technical defect cannot be enforced by law is called
because of some technical defect cannot be enforced by law is called
unenforceable contract. These contracts are neither void nor voidable.
unenforceable contract. These contracts are neither void nor voidable.
Example: Writing registration or stamping.
Example: Writing registration or stamping.

25. Illegal contract : C
Illegal contract : Contracts those which are forbidden by law. All illegal
ontracts those which are forbidden by law. All illegal
contracts are hence void also, because of the illegality of their nature
contracts are hence void also, because of the illegality of their nature
they cannot be enforced by any court of law. In fact even associated
they cannot be enforced by any court of law. In fact even associated
contracts cannot be enforced. Contracts which are opposed to public
contracts cannot be enforced. Contracts which are opposed to public
policy or immoral are also illegal.
policy or immoral are also illegal.
“
“All illegal agreements are void agreements but all void agreements are not
All illegal agreements are void agreements but all void agreements are not
illegal.”
illegal.”

26. ON THE BASIS OF EXECUTION
ON THE BASIS OF EXECUTION
.
Executed contract :
Executed contract : An executed contract is one in which both the
An executed contract is one in which both the
parties have performed their respective obligation.
parties have performed their respective obligation.
Executory contract :
Executory contract : An executory contract is one where one or both
An executory contract is one where one or both
the parties to the contract have still to perform their obligations in
the parties to the contract have still to perform their obligations in
future. Thus, a contract which is partially performed or wholly
future. Thus, a contract which is partially performed or wholly
unperformed is termed as executory contract.
unperformed is termed as executory contract.

27. ON THE BASIS OF LIABILITY
ON THE BASIS OF LIABILITY
Unilateral contract :
Unilateral contract : A unilateral contract is one in which only one
A unilateral contract is one in which only one
party has to perform his obligation at the time of the formation of the
party has to perform his obligation at the time of the formation of the
contract, the other party having fulfilled his obligation at the time of
contract, the other party having fulfilled his obligation at the time of
the contract or before the contract comes into existence.
the contract or before the contract comes into existence.
Bilateral contract :
Bilateral contract : A bilateral contract is one in which the obligation
A bilateral contract is one in which the obligation
on both the parties to the contract is outstanding at the time of the
on both the parties to the contract is outstanding at the time of the
formation of the contract. Bilateral contracts are also known as
formation of the contract. Bilateral contracts are also known as
contracts with executory consideration.
contracts with executory consideration.

28. THANK YOU
THANK YOU
HAVE A FABULOUS DAY
HAVE A FABULOUS DAY 
