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(Meaning with suitable example & explanation)
What Is Contract?, Formation of Indian Contract Act, Agreement,Offer or Proposal, TYPES OF OFFER, Acceptance, Capacity, Minors, Unsound Mind, Consideration, Consent, Legal Object, Void Agreement, Discharge of Contract, Remedies for breach of contracts, Contingent Contract, Contract of Indemnity, Essential elements of a contract of indemnity , RIGHTS OF INDEMNITY HOLDER, Contract of Guarantee, Essential elements of a contract of Guarantee, CONTRACT OF BAILMENT, Essential elements of a contract of Bailment, MODES OF DELIVERY
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(Meaning with suitable example & explanation)
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All agreement are contracts if they are made by the free consent of the parties competent to contract, for a lawful consideration and with a lawful object and are not expressly declared to be void.
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The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
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http://sandymillin.wordpress.com/iateflwebinar2024
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Contract
1. Classification of contract
Contracts can be classified into five broad divisions namely
1. The method of formation of a contract
2. The time of performance of contract
3. The parties of the contract
4. The method of formalities of the contract
5. The method of legality of the contract
1. The method of formation of a contract
Under the method of formation of a contract may be three kinds
Ø Express contract
Ø Implied contract
Ø Quasi contract.
Express contract:
Express contract is one which expressed in words spoken or written. When
such a contract is formal, there is no difficulty in understanding the rights and
obligations of the parties.
Implied contract:
The condition of an implied contract is to be understood form the acts, the
contract of the parties or the course of dealing between them
Quasi contract:
There are certain dealings which are not contracts strictly, though the parties
act as if there is a contract. The contract Act specifies the various situations
which come within what is called Quasi contract.
2.The time of performance of contract
Under the method of the time of performance of contract may be two kinds
Ø Executed Contract
Ø Executory Contract
Executed Contract:
There are contracts where the parties perform their obligations immediately,
as soon as the contract is formed.
Executory Contract:
In this contract the obligations of the parties are to be performed at a later
time.
3. The parties of the contract
Under the method of the parties of the contract may be two kinds
Ø Bilateral Contract
Ø Unilateral Contract
2. Bilateral Contract:
There must be at last two parties to the contract. Therefore all contracts are
bilateral or multilateral.
Unilateral Contract:
In certain contracts one party has to fulfill his obligations where as the other
party has already performed his obligations. Such a contract is called unilateral
contract.
4. The method of formalities of the contract
Under the method of the method of formalities of the contract may be two
kinds
Ø Formal contract
Ø Informal contract
Formal contract: A formal contract is a contract which is formatted by
satisfied all the essentials formalities of a contract.
Informal contract:
An informal contract is a contract which is failed to satisfy all or any of the
essentials formalities of a contract.
5. The method of legality of the contract
Under the method of the method of legality of the contract may be five kinds
1. Valid Contract
2. Void Agreement
1. Void able Contract Unenforceable Agreement
2. Illegal Agreement
Valid Contract: An agreement which satisfied all the essential of a contract
and which is enforceable through the court is called valid contract.
Void Agreement: An agreement which is failed to satisfied all or any of the
essential element of a contract and which is not enforceable by the court is
called void agreement. An agreement not enforceable by law is said to be
void. A void agreement has no legal fact. It confers no right on any person
and created no obligation.
Example: An agreement made by a minor.
3. Void able Contract:
An agreement which is enforceable by law at the open of one or more parties
of the contract but not at the open of the other or others is a void able contract.
A void able contract is one which can be avoided and satisfied by some of the
parties to it. Until it is avoided, it is a good contract.
Example: contracts brought about by coercion or undue influence or
misrepresentation or fraud.
Unenforceable Agreement:
An Unenforceable Agreement is one which cannot be enforcing in a court
for its technical and formal defect.
Example:
(1) An agreement required by law to register but not resisted.
(2) An agreement with not satisfied stamped.
Illegal Agreement:
An illegal agreement is one which is against a law enforcing in Bangladesh.
Example: An agreement to compiled madder.
4. Essential Elements of a Valid Contract.
An agreement must have the following essential elements to become a valid
contract:
Offer and acceptance. ...
Mutual consent of parties. ...
Intention to create legal obligation. ...
Free consent of parties. ...
Parties must be competent to contract. ...
Lawful object. ...
Lawful consideration.
1. Offer and Acceptance.
In order to create a valid contract, there must be a 'lawful offer' by one party
and 'lawful acceptance' of the same by the other party.
2. Intention to Create LegalRelationship. In case, there is no such intention
on the part of parties, there is no contract. Agreements of social or domestic
nature do not contemplate legal relations.
3. Lawful Consideration. Consideration has been defined in various ways.
According to Blackstone, “Consideration is recompense given by the party
contracting to another." In other words of Pollock, "Consideration is the price
for which the promise of the another is brought."
Consideration is known as quid pro-quo or something in return.
4. Capacityof parties. The parties to an agreement must be competent t
contract. If either of the parties does not have the capacity to contract, the
contract is not valid.
According the following persons are incompetent to contract.
(a) Miners, (b) Persons of unsound mind, and
(c) persons disqualified by law to which they are subject.
5. 5. Free Consent. 'Consent' means the parties must have agreed upon the same
thing in the same sense.
According to Section 14, Consent is said to be free when it is not caused by-
(1) Coercion, or (2) Undue influence, or (3) Fraud, or
(4) Mis-representation, or (5) Mistake.
An agreement should be made by the free consent of the parties.
6. Lawful Object. The object of an agreement must be valid. Object has
nothing to do with consideration. It means the purposeor design of the
contract. Thus, when one hires a house for use as a gambling house, the object
of the contract is to run a gambling house.
The Object is said to be unlawful if-
(a) it is forbidden by law;
(b) it is of such nature that if permitted it would defeat the provision of any
law;
(c) it is fraudulent;
(d) it involves an injury to the personor property of any other;
(e) the court regards it as immoral or opposedto public policy.
7. Certainity of Meaning. According to Section 29,"Agreement the meaning
of which is not Certain or capable of being made certain are void."
8. Possibilityof Performance. If the act is impossible in itself, physically or
legally, if cannot be enforced at law. For example, Mr. A agrees with B to
discover treasure by magic. Such Agreements is not enforceable.
9. NotDeclaredto be void or Illegal. The agreement though satisfying all the
conditions for a valid contract must not have been expressly declared void by
any law in force in the country. Agreements mentioned in Section 24 to 30 of
the Act have been expressly declared to be void for example agreements in
restraint of trade, marriage, legal proceedings etc.
10. LegalFormalities. An oral Contract is a perfectly valid contract, expect in
6. those cases where writing, registration etc. is required by some statute. In India
writing is required in cases of sale, mortgage, lease and gift of immovable
property, negotiable instruments; memorandum and articles of association of a
company, etc. Registration is required in cases of documents coming within
the scopeof section 17 of the Registration Act.
All the elements mentioned above must be in order to make a valid contract. If
any one of them is absent the agreement does not become a contract.