Contracts and agreements have dominates so many aspects of the economy in our daily lives. Practically every personal business activity involves a contract, such as enrollment in college, renting a house or an apartment, buying and selling a land or a vehicle, and many more. A contracts define the relationship, the rights, and the obligations of the parties. And one of the essential elements of a contract is an agreement. An agreement is formed when an offer is accepted. If the agreement has been poured in written form, then the Agreement is called Contract. The content of the Contract are in fact the Agreement itself. The terms of the contract and the agreement are identical, without needing to be differentiated and can be used simultaneously. The term of contract is more often used in business practice.
The document defines an agreement as a understanding between two or more parties regarding their obligations and duties. It discusses the characteristics of a valid agreement, including mutual benefit, clear understanding, feasibility, being in writing, and agreement of all parties. The document then outlines several common types of agreements, such as social agreements, legal agreements, sale agreements, mortgage agreements, construction agreements, research agreements, confidentiality agreements, material transfer agreements, service agreements, and small business innovation research agreements.
The document discusses the Indian Contract Act of 1872. It provides definitions of key terms related to contracts such as agreement, offer, acceptance, consideration, and validity. An agreement only becomes a legally valid contract if it meets certain essential elements - there must be an offer and acceptance, lawful object and consideration, capacity and free consent of parties, certainty and possibility of performance. The document also describes different types of contracts based on their formation, parties involved, performance obligations, and enforceability. It provides examples to illustrate concepts related to contracts under the Indian Contract Act.
Essentials of proposals and revocationMuneeb Ahsan
This document discusses the essentials of proposals and revocation in contract law. It defines a proposal or offer as signifying a willingness to do or abstain from doing something. A proposal must have clear terms, be communicated, intend to create legal relations, and be possible to accept. A proposal can be revoked through notice, lapse of time, death or insanity of the offeror, counteroffer from the offeree, or subsequent illegality. Revocation refers to canceling or annulling something by authority, such as withdrawing an offer before acceptance.
This document defines a contract and the essential elements for a valid contract, including offer, acceptance, and consideration. It distinguishes between agreements that are valid contracts and those that are void. A valid contract is enforceable by law if it fulfills the basic essentials. A void contract was initially valid but becomes unenforceable due to factors like becoming impossible to perform. In contrast, a void agreement is not enforceable from the start due to defects like the parties not being competent or the consideration being unlawful.
there are six different types of contract,they are :
1.Valid Contract
2.Voidable Contract
3.Void Contract
4.Unenforceable Contract
5.Illegal Contract
6.Contingent Contract
There are several types of contracts:
1. A valid contract is enforceable by law when all essential elements are present.
2. A voidable contract can be voided when consent is not free, such as under threat.
3. A void contract has no legal effect.
Contracts can also be express (verbal or written), implied (based on actions), quasi (not by agreement but recognized by law), executed (both parties fulfilled obligations), or executory (obligations still need to be performed).
Essential elements of a valid contract and contract breachMihir joshi
The document discusses the key elements of a valid contract, including offer and acceptance, consideration, capacity of parties, legality of object, and intention to create legal relations. It also covers types of contracts such as void, voidable, executed, and implied contracts. Various ways a contract can be discharged are outlined, such as performance, agreement, impossibility, breach of contract, and operation of law.
The document defines an agreement as a understanding between two or more parties regarding their obligations and duties. It discusses the characteristics of a valid agreement, including mutual benefit, clear understanding, feasibility, being in writing, and agreement of all parties. The document then outlines several common types of agreements, such as social agreements, legal agreements, sale agreements, mortgage agreements, construction agreements, research agreements, confidentiality agreements, material transfer agreements, service agreements, and small business innovation research agreements.
The document discusses the Indian Contract Act of 1872. It provides definitions of key terms related to contracts such as agreement, offer, acceptance, consideration, and validity. An agreement only becomes a legally valid contract if it meets certain essential elements - there must be an offer and acceptance, lawful object and consideration, capacity and free consent of parties, certainty and possibility of performance. The document also describes different types of contracts based on their formation, parties involved, performance obligations, and enforceability. It provides examples to illustrate concepts related to contracts under the Indian Contract Act.
Essentials of proposals and revocationMuneeb Ahsan
This document discusses the essentials of proposals and revocation in contract law. It defines a proposal or offer as signifying a willingness to do or abstain from doing something. A proposal must have clear terms, be communicated, intend to create legal relations, and be possible to accept. A proposal can be revoked through notice, lapse of time, death or insanity of the offeror, counteroffer from the offeree, or subsequent illegality. Revocation refers to canceling or annulling something by authority, such as withdrawing an offer before acceptance.
This document defines a contract and the essential elements for a valid contract, including offer, acceptance, and consideration. It distinguishes between agreements that are valid contracts and those that are void. A valid contract is enforceable by law if it fulfills the basic essentials. A void contract was initially valid but becomes unenforceable due to factors like becoming impossible to perform. In contrast, a void agreement is not enforceable from the start due to defects like the parties not being competent or the consideration being unlawful.
there are six different types of contract,they are :
1.Valid Contract
2.Voidable Contract
3.Void Contract
4.Unenforceable Contract
5.Illegal Contract
6.Contingent Contract
There are several types of contracts:
1. A valid contract is enforceable by law when all essential elements are present.
2. A voidable contract can be voided when consent is not free, such as under threat.
3. A void contract has no legal effect.
Contracts can also be express (verbal or written), implied (based on actions), quasi (not by agreement but recognized by law), executed (both parties fulfilled obligations), or executory (obligations still need to be performed).
Essential elements of a valid contract and contract breachMihir joshi
The document discusses the key elements of a valid contract, including offer and acceptance, consideration, capacity of parties, legality of object, and intention to create legal relations. It also covers types of contracts such as void, voidable, executed, and implied contracts. Various ways a contract can be discharged are outlined, such as performance, agreement, impossibility, breach of contract, and operation of law.
This document outlines the key considerations and elements for properly drafting agreements. It discusses gathering necessary details about the parties and subject matter. It also covers important legal issues like offer and acceptance. Well-drafted agreements are clear, concise, logically organized and accurately reflect the intentions of the parties. They also include basic parts like the title, dates, parties, recitals, valuable consideration, definitions, body, interpretations, boiler plate clauses and signatures.
An agreement enforceable by law is a contract. A contract requires an offer, acceptance, consideration and agreement between two or more competent parties. An agreement to sell a horse is an enforceable contract as it creates legal obligations, while an agreement to go on a picnic together is not enforceable. Contracts can be express, implied, executed, executory, bilateral, unilateral, valid, void or voidable depending on how they are formed and their legal enforceability.
This document defines a contract and outlines key concepts in contract law including offer and acceptance, consideration, duties and enforcement, and defenses. It explains that a contract is a legally binding promise, and covers topics such as what constitutes a valid offer, how acceptance forms a contract, the need for consideration on both sides, the concept of substantial performance of duties, remedies for breach such as damages and specific performance, and defenses that can make a contract void like unconscionability, fraud, duress, and illegality.
The document discusses the validity terms of contracts, including mutual consent, capacity, certainty of object, and lawful cause. It defines key concepts like offer and acceptance, noting an offer must be definite and communicated to create a binding promise upon acceptance. Acceptance can be expressed or implied through silence based on business customs. The parties must have capacity and mental ability to contract, the object must be possible and defined, and there must be lawful cause such as exchange of goods/services. The document also discusses principles of freedom of contract and consensus between parties to establish a valid agreement.
The document provides an overview of contract law in India according to the Indian Contract Act of 1872. It defines key terms like contract, agreement, and promise. A contract is an agreement that is enforceable by law, containing an offer, acceptance, and consideration. The document outlines the essential elements of a valid contract and classifications of contracts based on enforceability, formation, performance, and obligations. It provides examples to illustrate different types of contracts.
This document provides an overview of key concepts relating to Indian partnership law under the Indian Partnership Act of 1932. It defines a partnership as a relation between people who agree to share profits from a business carried on by all or any of the partners. The essentials of a partnership are an agreement between two or more people to carry out a legal business and share profits. It also outlines types of partners, rights and duties of partners, liability of a firm for partner actions, and modes of dissolving a partnership through mutual agreement, notice, or court decree.
This document discusses capacity to contract under Indian law. It summarizes that minors cannot enter into valid contracts and contracts with minors are void. However, minors are liable to repay necessities supplied to them. Persons of unsound mind are also generally not able to enter into valid contracts, except for necessities. Consent is required for a valid contract and consent obtained through coercion, undue influence, or misrepresentation can make a contract voidable. Consideration is also required, though it need only be something of value to the promisor and need not be adequate. Breach of contract entitles the wronged party to remedies like damages, rescission or specific performance.
This document discusses void agreements under Indian contract law. It begins by defining an agreement and contract. It then explains that a void agreement is one that is not enforceable by law and does not create any legal obligations from the beginning. Several types of agreements are expressly declared void by the Indian Contract Act, including agreements in restraint of marriage, trade, or legal proceedings, agreements with uncertain meanings, wagering agreements, and agreements contingent on impossible events. Examples of cases related to various void agreements are also provided.
The document discusses the law of contracts in India. It begins by defining a contract as an agreement that is enforceable by law under the Indian Contract Act of 1872. It then discusses key elements of a valid contract including offer and acceptance, intention to create legal relations, lawful consideration, capacity of parties, free and genuine consent, lawful object, certainty and possibility of performance, and legal formalities. It also covers classification of contracts according to validity, formation, and performance. Examples are provided to illustrate voidable contracts, void agreements, and other contract types.
This document discusses various ways in which a contract can be discharged or terminated, including through performance, mutual agreement, impossibility of performance, breach of contract, operation of law, or lapse of time. It describes two types of breach of contract: anticipatory breach, which occurs when a party demonstrates intention to break the contract before performance is due, and actual breach, which occurs when a party fails to perform an obligation under the contract at the required time. Finally, it outlines several remedies available to an aggrieved party in the case of breach of contract, such as recession of the contract, quantum meruit, specific performance, injunction, and damages.
The document discusses the various ways in which a contract can be discharged or terminated, including by performance, agreement, impossibility of performance, lapse of time, operation of law, and breach of contract. It provides details on each type of discharge, such as how discharge by performance occurs when both parties fulfill their obligations, while discharge by breach of contract happens when one party fails to meet their contractual duties. Remedies for breach of contract that may be available include rescission, damages, quantum meruit, specific performance, and injunction.
According to Indian contract law, a person must be of the age of majority, of sound mind, and not otherwise legally disqualified to have the capacity to enter into a valid and enforceable contract. A minor, defined as a person under 18 years of age, lacks such capacity and any agreements entered into by a minor are void ab initio. However, a minor can be held liable to pay for necessities provided to them, such as food, clothing, shelter, and services related to education or healthcare. A person of unsound mind, including idiots, lunatics, or those intoxicated, also lacks the capacity to contract if unable to understand the nature and effect of the agreement.
Discharge of a contract means termination of contractual obligations between parties. A contract can be discharged in several ways including performance, agreement between parties, impossibility of performance, failure to provide facilities for performance, death, refusal of performance, unauthorized alterations, lapse of time, operation of law, and breach of contract. Some key ways are discharge by performance when both parties fulfill their obligations, and discharge by agreement/consent when parties mutually agree to novate, accept accord and satisfaction, remit obligations, or rescind the contract.
The document provides an overview of the Indian Contract Act of 1872. It discusses key elements of a valid contract according to the act, including offer and acceptance, lawful consideration, capacity and consent of the parties, a lawful object, and certainty of terms. It also categorizes different types of contracts based on their creation (express, implied, tacit, quasi), validity (valid, void, voidable, illegal), execution (executed, executory), and liability (unilateral, bilateral). The Indian Contract Act of 1872 is an important law that regulates contracts and agreements in India.
This document provides an introduction to business law. It discusses how human civilization and the development of business led to the need for a uniform code of conduct. It defines law and outlines the main branches of law. It then defines business and business law. The objectives of business law are also presented. Finally, the key sources of business law are summarized, including customs, common law, equity principles, law merchant, statute law, precedents, and Indian statute law.
The document discusses breach of contract, including actual and anticipatory breach. It defines key terms like defaulting party and aggrieved party. In case of breach, the aggrieved party has several options for recourse under law, including cancelling the contract, claiming damages in compensation for losses, seeking specific performance of the contract, or obtaining an injunction [against the defaulting party]. Damages aim to financially remedy the aggrieved party and may include ordinary damages for expected losses as well as special, exemplary, or liquidated damages depending on the circumstances of the breach.
This document discusses fraud and misrepresentation under Indian contract law. It defines fraud as intentionally deceiving another party through false suggestions, concealment of facts, promises without intent to perform, or other deceitful acts. Misrepresentation involves making an innocent but incorrect statement of fact. The key differences are that fraud requires intent and can result in damages, while misrepresentation is unintentional and usually does not lead to damages claims. Both can allow the deceived party to avoid the contract or demand its proper performance. The document outlines the elements of fraud and misrepresentation, available remedies, and exceptions regarding negligence or failure to discover the truth.
11 summarize of portuguese and turkish contract lawsmailTalha
The document summarizes key aspects of contract law in Portugal and Turkey. It outlines some of the main principles in both systems, including freedom of contract, good faith requirements, validity and nullity of contracts. It notes that Turkish contract law is seen within the Law of Obligations and was originally based on Swiss law. Portuguese contract law is primarily codified in the Civil Code, modeled after German law.
The document summarizes key aspects of contract law in India according to the Indian Contract Act of 1872. It defines a contract as an agreement that is enforceable by law, consisting of an agreement and enforceability. It outlines the essential elements that must be present for an agreement to be considered a valid contract, including offer and acceptance, lawful consideration, capacity and consent of parties, a lawful object, and certainty of terms. It also distinguishes between different types of contracts based on validity, formation, and performance. Finally, it compares the differences between void, voidable, and illegal agreements.
This document outlines the key considerations and elements for properly drafting agreements. It discusses gathering necessary details about the parties and subject matter. It also covers important legal issues like offer and acceptance. Well-drafted agreements are clear, concise, logically organized and accurately reflect the intentions of the parties. They also include basic parts like the title, dates, parties, recitals, valuable consideration, definitions, body, interpretations, boiler plate clauses and signatures.
An agreement enforceable by law is a contract. A contract requires an offer, acceptance, consideration and agreement between two or more competent parties. An agreement to sell a horse is an enforceable contract as it creates legal obligations, while an agreement to go on a picnic together is not enforceable. Contracts can be express, implied, executed, executory, bilateral, unilateral, valid, void or voidable depending on how they are formed and their legal enforceability.
This document defines a contract and outlines key concepts in contract law including offer and acceptance, consideration, duties and enforcement, and defenses. It explains that a contract is a legally binding promise, and covers topics such as what constitutes a valid offer, how acceptance forms a contract, the need for consideration on both sides, the concept of substantial performance of duties, remedies for breach such as damages and specific performance, and defenses that can make a contract void like unconscionability, fraud, duress, and illegality.
The document discusses the validity terms of contracts, including mutual consent, capacity, certainty of object, and lawful cause. It defines key concepts like offer and acceptance, noting an offer must be definite and communicated to create a binding promise upon acceptance. Acceptance can be expressed or implied through silence based on business customs. The parties must have capacity and mental ability to contract, the object must be possible and defined, and there must be lawful cause such as exchange of goods/services. The document also discusses principles of freedom of contract and consensus between parties to establish a valid agreement.
The document provides an overview of contract law in India according to the Indian Contract Act of 1872. It defines key terms like contract, agreement, and promise. A contract is an agreement that is enforceable by law, containing an offer, acceptance, and consideration. The document outlines the essential elements of a valid contract and classifications of contracts based on enforceability, formation, performance, and obligations. It provides examples to illustrate different types of contracts.
This document provides an overview of key concepts relating to Indian partnership law under the Indian Partnership Act of 1932. It defines a partnership as a relation between people who agree to share profits from a business carried on by all or any of the partners. The essentials of a partnership are an agreement between two or more people to carry out a legal business and share profits. It also outlines types of partners, rights and duties of partners, liability of a firm for partner actions, and modes of dissolving a partnership through mutual agreement, notice, or court decree.
This document discusses capacity to contract under Indian law. It summarizes that minors cannot enter into valid contracts and contracts with minors are void. However, minors are liable to repay necessities supplied to them. Persons of unsound mind are also generally not able to enter into valid contracts, except for necessities. Consent is required for a valid contract and consent obtained through coercion, undue influence, or misrepresentation can make a contract voidable. Consideration is also required, though it need only be something of value to the promisor and need not be adequate. Breach of contract entitles the wronged party to remedies like damages, rescission or specific performance.
This document discusses void agreements under Indian contract law. It begins by defining an agreement and contract. It then explains that a void agreement is one that is not enforceable by law and does not create any legal obligations from the beginning. Several types of agreements are expressly declared void by the Indian Contract Act, including agreements in restraint of marriage, trade, or legal proceedings, agreements with uncertain meanings, wagering agreements, and agreements contingent on impossible events. Examples of cases related to various void agreements are also provided.
The document discusses the law of contracts in India. It begins by defining a contract as an agreement that is enforceable by law under the Indian Contract Act of 1872. It then discusses key elements of a valid contract including offer and acceptance, intention to create legal relations, lawful consideration, capacity of parties, free and genuine consent, lawful object, certainty and possibility of performance, and legal formalities. It also covers classification of contracts according to validity, formation, and performance. Examples are provided to illustrate voidable contracts, void agreements, and other contract types.
This document discusses various ways in which a contract can be discharged or terminated, including through performance, mutual agreement, impossibility of performance, breach of contract, operation of law, or lapse of time. It describes two types of breach of contract: anticipatory breach, which occurs when a party demonstrates intention to break the contract before performance is due, and actual breach, which occurs when a party fails to perform an obligation under the contract at the required time. Finally, it outlines several remedies available to an aggrieved party in the case of breach of contract, such as recession of the contract, quantum meruit, specific performance, injunction, and damages.
The document discusses the various ways in which a contract can be discharged or terminated, including by performance, agreement, impossibility of performance, lapse of time, operation of law, and breach of contract. It provides details on each type of discharge, such as how discharge by performance occurs when both parties fulfill their obligations, while discharge by breach of contract happens when one party fails to meet their contractual duties. Remedies for breach of contract that may be available include rescission, damages, quantum meruit, specific performance, and injunction.
According to Indian contract law, a person must be of the age of majority, of sound mind, and not otherwise legally disqualified to have the capacity to enter into a valid and enforceable contract. A minor, defined as a person under 18 years of age, lacks such capacity and any agreements entered into by a minor are void ab initio. However, a minor can be held liable to pay for necessities provided to them, such as food, clothing, shelter, and services related to education or healthcare. A person of unsound mind, including idiots, lunatics, or those intoxicated, also lacks the capacity to contract if unable to understand the nature and effect of the agreement.
Discharge of a contract means termination of contractual obligations between parties. A contract can be discharged in several ways including performance, agreement between parties, impossibility of performance, failure to provide facilities for performance, death, refusal of performance, unauthorized alterations, lapse of time, operation of law, and breach of contract. Some key ways are discharge by performance when both parties fulfill their obligations, and discharge by agreement/consent when parties mutually agree to novate, accept accord and satisfaction, remit obligations, or rescind the contract.
The document provides an overview of the Indian Contract Act of 1872. It discusses key elements of a valid contract according to the act, including offer and acceptance, lawful consideration, capacity and consent of the parties, a lawful object, and certainty of terms. It also categorizes different types of contracts based on their creation (express, implied, tacit, quasi), validity (valid, void, voidable, illegal), execution (executed, executory), and liability (unilateral, bilateral). The Indian Contract Act of 1872 is an important law that regulates contracts and agreements in India.
This document provides an introduction to business law. It discusses how human civilization and the development of business led to the need for a uniform code of conduct. It defines law and outlines the main branches of law. It then defines business and business law. The objectives of business law are also presented. Finally, the key sources of business law are summarized, including customs, common law, equity principles, law merchant, statute law, precedents, and Indian statute law.
The document discusses breach of contract, including actual and anticipatory breach. It defines key terms like defaulting party and aggrieved party. In case of breach, the aggrieved party has several options for recourse under law, including cancelling the contract, claiming damages in compensation for losses, seeking specific performance of the contract, or obtaining an injunction [against the defaulting party]. Damages aim to financially remedy the aggrieved party and may include ordinary damages for expected losses as well as special, exemplary, or liquidated damages depending on the circumstances of the breach.
This document discusses fraud and misrepresentation under Indian contract law. It defines fraud as intentionally deceiving another party through false suggestions, concealment of facts, promises without intent to perform, or other deceitful acts. Misrepresentation involves making an innocent but incorrect statement of fact. The key differences are that fraud requires intent and can result in damages, while misrepresentation is unintentional and usually does not lead to damages claims. Both can allow the deceived party to avoid the contract or demand its proper performance. The document outlines the elements of fraud and misrepresentation, available remedies, and exceptions regarding negligence or failure to discover the truth.
11 summarize of portuguese and turkish contract lawsmailTalha
The document summarizes key aspects of contract law in Portugal and Turkey. It outlines some of the main principles in both systems, including freedom of contract, good faith requirements, validity and nullity of contracts. It notes that Turkish contract law is seen within the Law of Obligations and was originally based on Swiss law. Portuguese contract law is primarily codified in the Civil Code, modeled after German law.
The document summarizes key aspects of contract law in India according to the Indian Contract Act of 1872. It defines a contract as an agreement that is enforceable by law, consisting of an agreement and enforceability. It outlines the essential elements that must be present for an agreement to be considered a valid contract, including offer and acceptance, lawful consideration, capacity and consent of parties, a lawful object, and certainty of terms. It also distinguishes between different types of contracts based on validity, formation, and performance. Finally, it compares the differences between void, voidable, and illegal agreements.
The document discusses the definition and essential elements of a valid contract. It defines a contract as an agreement that is enforceable by law, made between two or more parties where each party provides something in return. The essential elements for a valid contract are: agreement between two competent parties, lawful consideration, lawful object, intention to create a legal relationship, free consent, and certainty of terms. The document also discusses different types of contracts based on validity, formation, and performance, including valid, void, voidable, illegal, unilateral, bilateral, executed, and executory contracts.
The document discusses various concepts related to contracts including the definition of a contract, essential elements of a valid contract, classification of contracts, joint ventures, and complex contract terminology. It provides details on the Indian Contract Act of 1872, general principles of contracts in India, tendering processes, and requests for proposals. Key points covered include the history and objectives of the Contract Act, types of contracts based on validity and performance, advantages of joint ventures, and considerations for negotiating complex contracts.
This document discusses key aspects of contract law in India according to the Indian Contract Act of 1872. It defines a contract and outlines essential elements for a valid contract, including offer and acceptance, lawful consideration, capacity of parties to contract, free consent, and lawful object. It also discusses types of contracts like indemnity, guarantee, bailment, and agency. Overall, the document provides a comprehensive overview of Indian contract law fundamentals and framework.
The document discusses various aspects of business law and legal issues related to contracts and agreements in the tourism industry. It defines key terms like contract, essential elements of a contract, offer and acceptance. It also explains different types of contracts/agreements, conditions for a valid contract, breach of contract and available remedies. Additionally, it discusses void and voidable agreements, and compares contracts and agreements. The document provides useful information on the formation, interpretation and enforcement of contracts in business and tourism.
This document discusses the key concepts of law and contracts. It begins by defining law from different perspectives such as a citizen obeying rules, a lawyer practicing law as a vocation, and a judge applying guiding principles. The document then discusses the need for law, particularly for businessmen to avoid conflicts. It provides definitions of a contract from various legal scholars and sections of the Indian Contract Act. The essential elements of a valid contract are described as offer, acceptance, intention to create legal relations, lawful consideration, competency of parties, free consent, lawful object, agreement not declared void, certainty and possibility of performance, and compliance with legal formalities. The document also classifies contracts based on validity, formation, and performance. It concludes
The document discusses the nature and importance of contract law. It provides 7 definitions of a contract from various sources. A contract is generally defined as a promise or set of promises that is legally binding and enforceable. For a valid contract to exist there must be an offer, acceptance, and consideration. Contract law protects business interests and transactions by enforcing agreements and providing remedies for breach of contract. It is an essential part of business and commerce.
The document provides an overview of contract law in India, including:
- The Indian Contract Act of 1872 governs contracts in India and defines key terms like agreement, promise, and consideration.
- For a contract to be valid it must meet characteristics like being based on a valid agreement between competent parties, having lawful consideration, clear and lawful terms, and free consent.
- Contracts are classified in various ways including by their enforceability, formation, performance, and obligations. Valid contracts that meet all requirements are enforceable, while void, voidable, or illegal contracts may not be.
This document provides information about law and contracts in India. It defines key terms related to contracts such as offer, acceptance, consideration, agreement and contract. It outlines the essential elements for a valid contract including offer and acceptance, lawful consideration, capacity of parties, free consent, lawful object, possibility of performance, certainty and legality. It also discusses different types of contracts such as void, voidable, illegal and quasi contracts. The document compares agreements and contracts, and describes different types of contracts based on their creation, validity, execution and liability.
This document provides an overview of contract law in India. It begins by defining the term "law" and noting that law comprises rules enforced by a sovereign state. It then discusses the Indian Contract Act of 1872, which is the primary legislation governing contracts in India. The key points covered include:
1) The Indian Contract Act defines a contract and establishes elements like offer, acceptance, capacity and consent required for a valid contract.
2) Contracts are classified and remedies for breach are provided. This act regulates commercial transactions in India.
3) While parties once had freedom to negotiate contracts, now standard forms and consumer protection laws limit this freedom to some extent.
4) The nature and scope of the
The document discusses key concepts related to Indian contract law. It defines a contract according to Indian law as an agreement that is enforceable by law. It outlines the essential elements of a valid contract including offer and acceptance, intention to create legal relations, consensus ad idem, consideration, capacity to contract, lawful object, certainty and possibility of performance, and enforceability by law. It also discusses different types of contracts based on validity, formation and performance.
The document discusses key concepts related to Indian contract law. It defines a contract according to Indian law as an agreement that is enforceable by law. It outlines the essential elements of a valid contract including offer and acceptance, intention to create legal relations, consensus ad idem, consideration, capacity to contract, lawful object, certainty and possibility of performance, and enforceability by law. It also discusses different types of contracts based on validity, formation and performance.
- The Constitution of Kenya 2010 recognizes the importance of contracts in commercial relationships and provides a framework for their regulation and enforcement. It establishes the right to enter into contracts and protects contractual rights and obligations.
- While it does not explicitly address all aspects of contracts, it includes provisions related to indemnity for public officers and constitutional officeholders. It also guarantees rights like equal protection, healthcare, and housing that can act as guarantees.
- The Constitution provides for seeking remedies for breach of contractual obligations through the courts. It also protects property rights, including property acquired through contracts.
- The Contracts Act of Kenya further governs contracts and outlines termination procedures, available remedies for breach like damages and specific performance,
Contracts are legally binding agreements between two or more competent parties that usually involve employment, sale or lease of property, or tenancy. The key elements of a valid contract are offer, acceptance, consideration, intention to create legal relations, capacity to contract, certainty of terms, and free consent. Minors and mentally impaired individuals generally lack the capacity to enter into contracts. For a contract to be enforceable, it requires an offer, acceptance of that offer, and consideration or valuable benefit exchanged between the parties.
Man interacts with others in various social and legal capacities, requiring a set of rules to govern these interactions and make them beneficial to society. Law encompasses all rules regulating relationships between individuals and the state. The Indian Contract Act of 1872 defines a contract as an agreement enforceable by law and outlines essential elements for a valid contract such as offer, acceptance, lawful consideration, capacity and consent of parties. The document discusses various types of contracts and their classification based on validity.
The document discusses a case involving TAM's College hiring a marketing firm, NAMS, to promote the college. TAM's paid NAMS £1500 upfront but NAMS broke the contract terms by missing deadlines. TAM's is suing NAMS to get their money back. Additionally, a TAM's staff member was injured on the job for not wearing proper protective gear as required. TAM's is facing legal penalties due to vicarious liability policies. The document analyzes contract elements, types of contracts, negligence torts, and defenses against negligence in analyzing both legal situations.
Contract act ch 1 legal aspect of business law Karan Kukreja
This document provides an overview of business law concepts in India. It discusses legal theory and jurisprudence, definitions of law and its classifications. It also outlines the key constituents of law including society, enforcement, and historical/cultural development. The origins of the Indian legal system are explored considering ancient, medieval, colonial and independent India. The administrative structure of the legal system is examined including the roles of the Supreme Court and High Courts. The relationship between business and law is discussed in relation to contracts. Principles of commercial jurisprudence and the legal/business environment are also summarized.
Contract short note.pptx contract law part oneSaabbaaMan
This chapter introduces the concepts of obligation and contract. It defines obligation as a legal or moral duty and notes there is no single definition. Contract is defined as a legally enforceable promise or agreement. The key elements of a valid contract are identified as capacity, consent, object, and form if required. Sources of obligations are contractual, from terms of a contract, and non-contractual from other legal sources like tort. Historical development saw contract law emerge in the 19th century from commercial disputes in a period of expanding trade.
A workshop hosted by the South African Journal of Science aimed at postgraduate students and early career researchers with little or no experience in writing and publishing journal articles.
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Strategies for Effective Upskilling is a presentation by Chinwendu Peace in a Your Skill Boost Masterclass organisation by the Excellence Foundation for South Sudan on 08th and 09th June 2024 from 1 PM to 3 PM on each day.
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Dr. Vinod Kumar Kanvaria
Exploiting Artificial Intelligence for Empowering Researchers and Faculty,
International FDP on Fundamentals of Research in Social Sciences
at Integral University, Lucknow, 06.06.2024
By Dr. Vinod Kumar Kanvaria
How to Manage Your Lost Opportunities in Odoo 17 CRMCeline George
Odoo 17 CRM allows us to track why we lose sales opportunities with "Lost Reasons." This helps analyze our sales process and identify areas for improvement. Here's how to configure lost reasons in Odoo 17 CRM
This slide is special for master students (MIBS & MIFB) in UUM. Also useful for readers who are interested in the topic of contemporary Islamic banking.
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2. Background
• The Agreement is governed in Article 1313 of ICC as “an act in which one
or more persons commit themselves to one or more persons.” Unlike
the engagement which is a legal relationship, the agreement is a legal
act. It is the legal act that results in a legal relationship of engagement,
so it can be said that the agreement is the source of the engagement.
• If the agreement has been poured in written form, then the Agreement
is called Contract. The content of the Contract are in fact the Agreement
itself. The terms of the contract and the agreement are identical,
without needing to be differentiated and can be used simultaneously.
The term of contract is more often used in business practice.
3. Questions of the paper
The issues to be studied and analyzed into the discussion on
this paper are:
1. What are contracts and agreement?
2. What elements are there in the contract and the agreement?
3. Who are in the contract and the agreement?
4. What principles are there in the contract?
5. What is the implementation of the contract?
6. What are the types of contract?
7. How is the birth of an agreement?
8. How is the terms of validity of an agreement?
9. How is the termination of an agreement?
10. What is the legal arrangement of a contract?
4. Definition of Contracts & Agreements
CONTRACT
According to Indonesian Dictionary, contract
is:
1. Agreement (in writing) between two
parties in trading, leases, etc.
2. Approval of a legal sanction between
two or more parties to undertake or not
to engage in an activity.
3. Binding with the agreement.
4. Rent.
AGREEMENT
According to Van Dunne's new theory,
agreement is :
“a legal relationship between two or more
parties on the basis of an agreement to
cause legal consequences”.
The 2nd chapter of 3rd book of Indonesia Civil Code (ICC) is literally entitled:
“Engagement born of Contract or Agreement”
so ICC never distinguish the two terms if used interchangeably.
Neither the agreement nor the contract have the same understanding, that is, a legal act to
mutually bind the parties into a legal relationship of engagement.
5. Elements of Contract / Agreement
1. The Essential Element
It must be exist in a contract because without any agreement on this essential element
there is no contract. Example: in a contract of sale and purchase there must be agreement
on goods and prices because without it, the contract is null and void because there is no
certain thing that is promised.
2. The Naturally Element
It always considered to exist in the contract. It has been regulated in the law. If it is not
regulated by the parties to the contract, the law governing it. Example: if in a contract not
promised of hidden defects, automatically apply provisions in the Indonesia Civil Code
that the seller must bear the hidden flaw.
3. The Accidental Element
This element will exist or bind the parties if the parties agree to it. Example: in a sale and
purchase contract with an agreed installment that if the debtor fails to pay his debt is
liable to a two percent monthly fine of delay, and if the debtor fails to pay for three
consecutive months, the purchased item may be withdrawn by the creditor without trial.
6. Parties to the Contract
1. Businessmen
Business actor is any individual or business entity, whether in the form of a legal
entity established and domiciled or conducting activities within the territory of
the Republic of Indonesia, either alone or jointly through agreements in the
conduct of business activities in various economic fields.
2. Consumer
It is any person or user of goods and / or services available in society, whether
for self-interest, family, other person or any other living being and not for sale.
3. Nonprofessional
It referred to the person who sells the goods, but the sales are not his job so that
although the person who buys the goods uses the goods, but cannot be
classified as a consumer as stipulated in the Consumer Protection Act because
he / she is not dealing with the business actor.
7. Principles of Contract
1. The Principle of Freedom of Contract
It can be analysed from the provisions of Article 1338 paragraph (1) of ICC, which states: “All legally-made
agreements act as laws for those who make them”. This principle gives freedom to the parties to:
a. Making or not making agreements;
b. Enter into an agreement with anyone;
c. Determine the contents of the agreement, its implementation, and its terms, also
d. Determine whether the agreement is written or oral.
2. The Principle of Consensualism
It can be summarized in Article 1320 paragraph (1) of ICC, which determined that one of the conditions of the
validity of the agreement is the existence of an assent between the two parties. This principle states that
agreements are generally not formally held, but only by the agreement of both parties. Agreement is a
conformity between the will and statements made by both parties. This principle inspired from Roman law and
German law. In Indonesia Civil Code, it is related to the form of agreement.
3. The Principle of Legal Certainty (Pacta Sunt Servanda)
It is a principle relating to the effect of the agreement. The term “Pacta Sunt Servanda” means “the promise is
binding”. The intent is that a contract made legally by the parties binds the parties in full accord with the
contents of the contract. This is the principle that judges or third parties must respect the substance of
contracts made by the parties, as appropriate by law. They should not intervene on the substance of the
contract made by the parties. It can be concluded in Article 1338 paragraph (1) of ICC.
8. Principles of Contract …(Cont’d)
4. The Principle of Good Faith
It is contained in Article 1338 paragraph (3) of ICC which states: “The agreement shall be executed in good
faith”. This is the principle of the parties, namely the creditor and the debtor must exercise the substance
of the contract based on a firm belief or conviction or good will of the parties. This principle divided into
two types, namely good faith relative and absolute good faith. In the first intentions, one looks at the real
attitude and behavior of the subject. In the second intent, judgment lies in common sense and fairness and
an objective measurement is made to assess circumstances (impartial judgment) according to objective
norms.
5. The Principle of Personality
This is the decisive principle that a person who will do and / or make a contract only for the benefit of the
individual only. This can be seen in Article 1315 of ICC which states: “In general, a person cannot enter
into a contract or an agreement other than himself”. The essence of this provision is clear that to enter into
an agreement, it must be done for his own sake. And Article 1340 of ICC which states: “The agreement only
applies between the parties that make it”. It implies that the agreement made by the parties only apply to
those who make them.
9. Implementation of the Contract
1. Performance (Prestasi)
It is an obligation that must be fulfilled by the parties in a contract. The forms of
performance are determined in Article 1234 of ICC, among others:
1. Giving something,
2. Do something,
3. Do nothing
2. Default / Non-fulfillment (Wanprestasi)
Default or injury to an appointment shall be the Non-fulfillment of obligation as may
be imposed by the contract to the parties. It arise if one party (the debtor) does not do
what is promised. It can be divided in four categories:
1. Not doing what he or she is willing to do.
2. Implement what is promised, but not as promised
3. Doing what is promised but too late
4. Doing something according to the agreement should not be done.
10. Types of Agreements
1. Based on rights and obligations
It is based on the rights and
obligations of the parties.
Example: sale and purchase
agreement and also lease
agreement.
a. Unilateral Agreement
An agreement with only one obligation on the one hand, and
there are only rights in the other. This agreement always creates
obligations only to one party. Example: Loan agreement.
b. Reciprocal Agreement
An agreement whereby rights and obligations are on both sides.
So the party who is obliged to make an achievement is also
entitled to demand a counter achievement. Example: buy-sell
agreements and lease agreements. It is divided into two types:
1. Perfect mutual agreement
2. Imperfect mutual agreement
It always creates a fundamental obligation for one party, while
the other party must do something. Here seems to be a
balanced achievement with each other. Example: the recipient
is always obliged to carry out the message given by the
person who gave the it. The recipient carries out the
obligation, if the recipient has incurred expenses or has been
promised a wage, the message-giver must replace it.
11. Types of Agreements …(Cont’d)
2. Based on the benefits gained
It is based on the benefits of
one party and the
achievements of the other.
a. Free agreement
An agreement that benefits one party only. Example: Grant
agreements and loan agreements.
b. The weighting constraint agreement
An agreement on the achievement of one party and there is
always the counter-achievement of the other party and between
the two achievements are related according to law. Example: A
promises to B a certain amount, if B hands over a particular
object to A.
a. The Named Agreement (Nominaat)
It means an agreement which is known and contained in Article
1319 of ICC, which reads: “All agreements, whether of a special
name, or unknown with a particular name, are subject to the rules
general terms contained in this chapter and last chapter”.
Example: Sale and Purchase Agreements, Renting, Lending,
Insurance, Transportation Agreements, Debt Settlement, Grants,
Custody, etc.
b. Unnamed Agreement (Innominaat)
This agreements arise, grow, live and thrive in society. This type
of contract is not yet known in the Civil Code. Example: lease
purchase, franchise, utility contract, joint venture, contract work,
production sharing, etc.
3. Based on name and settings
It is based on Article 1319 of
ICC and Article 1355
Netherlands Burgelijk
Wetboek (NBW) which
mentions two kinds of
agreements by its name,
namely:
12. Types of Agreements …(Cont’d)
4. Based on the purpose of the
agreement
It is based on the elements
contained in the agreement,
namely:
a. Material Agreement
It is for the object being transferred or handed over to another party.
Example: the agreement of imposition of guarantee and delivery of
property rights.
b. Obligatory Agreements
It creates an obligations from the parties.
c. Liberatoir Agreement
An agreement that exempt from the existing obligations. Example:
Debt relief (Article 1438 of ICC).
a. Consensual Agreement
Binding since there is consensus from both parties. So it was born
from the moment the agreement was reached. Example: sale and
purchase, lease rent.
b. Real Agreement
It is binding if accompanied by a real action. So only with the word
of agree, it is not binding on both sides. For example, custody
agreements, loan agreements.
c. Formal Agreement
It is bound to a particular form, so the form shall be in accordance
with the applicable provisions. If it is not in accordance with the
provisions, then it is not valid. Example: the sale and purchase of
land must be in the PPAT deed, the establishment of a Limited
Liability Company must be by Notarial Deed.
5. Based on the birth of the agreement
It is based on the establishment of
the agreement. The agreement is
formed because both parties agree
to enter into an agreement.
13. The Birth of Contract/ Agreement
There are several theories that can be used to determine the birth of the contract, namely:
1. Theory of statement (Uitings Theorie)
According to this theory, contracts existed when an acceptance letter for an offer was
written. In other words the contract is present when the other party declares acceptance.
2. Theory of Delivery (Verzending Theori)
According to this theory when submitting an acceptance answer is the birth of a contract.
Postmark date can be used as a benchmark of contract date of birth.
3. Theory of Knowledge (Vernemingstheorie)
According to this theory the birth of the contract is at the time the contents of the
acceptation answer is known by the offer party.
4. Theory of Acceptance (Ontvangtheorie)
According to this theory the birth of the contract is at the time of receipt of the answer,
regardless of whether the letter has been opened or left unopened. The main thing is when
the letter arrives at the address of the recipient, the letter is used as a benchmark at the
birth of the contract.
14. Terms of Validity of Contract/ Agreement
a. Subjectively Requirements
It deals with the subject matter of the
agreement. The legal consequences of
non-fulfillment of one of the subjective
requirements is the contract may be
“irrevocable” or “canceled” by one of the
parties concerned. If the cancellation is
not done, then the contract remains and
must be executed as a legitimate contract.
Those requirements are:
b. Objectively Requirements
It deals with the object of the agreement.
The legal consequences of non-fulfillment
of one of the objective requirements below
is a contract made null and void. So since
the contract was made, the contract has
been cancelled. Those requirements are:
1. The existence of the agreement intent
A contract shall be deemed valid by law if both parties have an
agreement of opinion on what is stipulated in the contract. As
in Article 1321 and article 1449 of ICC, the disability of intent /
agreement may occur due to: Coercion, Fraud, Mistake, Misuse
of circumstances and etc
2. Abilities to act by law
As in Article 1330 of ICC, it is determined that each person is
competent to make engagement, unless the law determines
that he is incompetent. Of those who are incompetent to enter
into an agreement i.e.: People who are immature and those
who are under the ability
1. Specific object
The existence of this requirement means that a contract must
be subject to certain things, clear and justified by law. Of this
we can find in Article 1332 and Article 1333 of ICC.
2. A lawful cause
No contract should be made to do things that are against the
law. And the contents of the agreement are not prohibited by
law or not contrary to the morality / public order (Article 1337
of ICC). It is also determined that an agreement made without
cause or created for a false or forbidden cause is
unenforceable (Article 1335 of ICC).
15. Termination of Contract/ Agreement
Article 1381 of ICC regulates other factors that may lead to the termination of the agreement, for example:
1. Payment
It is not always interpreted in the form of money delivery, but the fulfilment of a number of achievements that
are agreed also include fulfilling the elements of payment.
2. Payment offer, followed by storage or custody
It is executed in accordance with the terms of the agreement including the time of fulfilment. But not
infrequently these achievements can be met before the promised time. Offer and acceptance of premature
achievement may be the reason for the termination of the agreement. Example, a borrowing and lending
agreement that is paid in installment, if the debtor can pay all the loan amount before maturity, then the
agreement may expire prematurely.
3. Debt renewal
It may result in the termination of the agreement, as the emergence of a new agreement causes the renewed
agreement to expire. The new agreement may arise because of the change of the parties in the agreement,
such as novasi agreement in which the debtor takes place or due to the change of the sale and purchase
agreement into the lease agreement, because the buyer is unable to pay off the remaining payment.
4. Debt or compensation encounter
It occurs because between the creditor and the debtor mutually owes the other, so that both debts are
considered paid by their respective accounts.
16. Termination of Contract/ Agreement …(Cont’d)
5. Debt mixing
Changing position of the party to an object of agreement may also lead to a debt mixing that terminates the
agreement, for example a tenant who turns into a homeowner because he bought the house before the lease expires
while there are still unpaid rent arrears.
6. Debt relief
It may occur because of the willingness of the creditor to free the debtor from the obligation to pay the debt, so that
with the release of the debtor from the obligation of debt fulfilment, then the thing agreed in the agreement as a
condition of the validity of the agreement becomes non-existent, thus ending the agreement.
7. The loss of goods owed
The disappearance of the promised goods also causes the non-fulfilment of the terms of the agreement because the
goods as the object of the agreement are not present, thus implicating the termination of the agreement.
8. Cancellation
The cancellation procedures agreed upon in the agreement may also serve as the basis for termination. If it is not
regulated in the agreement, it can only occur on the basis of the agreement of the parties as regulated in Article
1338 of ICC or by a court decision based on Article 1266 of ICC.
9. Applicability is void
Article 1265 of ICC stipulates the possibility of cancellation of the agreement due to the fulfilment of the void terms
agreed in the agreement.
10. Time passes
It may be due to the passage of time (expiration) of the agreement. This is regulated in Article 1967 of ICC.
17. Legal Arrangement of Contract & Agreements
It is set out in 3rd book of
ICC, which consists of 18
Chapters and 631 Articles.
Starting from Article 1233
until Article 1864 of ICC,
as listed follows:
No. Arrangement in 3rd book of Indonesia Civil Code (ICC) Articles
1. Engagement in general 1233 - 1312
2. Engagement born of a contract or agreement 1313 - 1351
3. Removal of the engagement 1381 - 1456
4. Sale and Purchase 1457 - 1540
5. Exchange 1541 - 1546
6. Lease Renting 1548 - 1600
7. Approval to do work 1601 - 1617
8. Alliance 1618 - 1652
9. Association 1653 - 1665
10. Grants 1666 - 1693
11. Deposit counter 1694 - 1739
12. Loan Agreement 1740 - 1753
13. Borrowing 1754 - 1769
14. Fixed or lasting interest 1770 - 1773
15. Covenant of profit 1774 - 1791
16. Authorization 1792 - 1819
17. Debt settlement 1820 - 1850
18. Peace 1851 - 1864