The document summarizes key aspects of contract formation and validity under the Indian Contract Act of 1872. It discusses the requirements for a valid contract such as offer and acceptance, consideration, and consent. It also covers special types of parties like minors and their ability to enter into contracts. The summary provides a high-level overview of the main topics and concepts addressed in the document related to formation, discharge, and special types of contracts according to Indian law.

1. INDIAN CONTRACT ACT,
1872
CHARAK RAY
libra.charak@gmail.com

2. Indian ContractAct 1872
An act meant to ensure that rights
agreed between parties in a contract
are legally enforced.

3. CHAPTERS
- FORMATION
- DISCHARGE
- SPECIAL CONTRACTS
- MODERN CONTRACTS

4. FORMATION-What is a contract
• It must have an offer and acceptance
• It must have the 3 C’s.
• It must not be prohibited by law.
(note : a social agreement is not a contract because it does not
have any legal intention between the parties.

5. What is an Offer
1.It must be precise ; capable of being understood and
communicated.
2.It must not contain a clause that does away with
acceptance
3.Special terms must be brought to the notice of the offeree
4.It need not be in writing though in immoveable property
contracts it must be in writing.

6. Offer … continued
5.Distinguish between an offer and an invitation to an offer.
6.Under certain circumstances an advertisement can
become an offer.
7. An offer can be revoked before it is accepted though in
some countries it is not so.
8. In a digital contract the offer has been communicated
once it has entered the computer of the offeree.

7. ACCEPTANCE
1. An acceptance must be in response to an offer.
2. It must be in the mode prescribed
3. It must be made by the person to whom the offer has
been made.
4. It must be unqualified and unconditional.
(Though in some countries minor modifications are
permissible.)

8. Acceptance ..contd.
5. Acceptance must be made within the tme provided or
reasonable time.
6. Acceptance can be revoked before it reaches the offeree.
7. In the case of cyber contracts acceptance has reached
when it enters the system of the offeree.

9. 3 C’s of a Contract
CAPACITY
CONSIDERATION
CONSENT

10. CAPACITY
• A minor and an unsound person and an insolvent person
cannot enter into contracts . It is void ab – initio.
• Reason :The contract creates legally binding obligations
on the parties and hence only those who have the
capability (capacity) to do so should be allowed otherwise
they(minor/unsound/insolvent) may harm themselves.

11. MORE ON MINORS
1.Agreement with minor is void – ab – initio.
2. Even if a minor declares himself to be a major he can
plead that he is a minor
3. An agreement with a minor cannot be ratified on his
becoming a major.
4. Guardians of a minor are not liable on contracts with a
minor

12. Minor….
5. A minor if provided with necessaries of life then it can be
reimburse from the minor’s estate.
6. A minor can be a beneficiary.
7. A minor can become a partner though he would not be
liable.

13. C - Consideration
1.Consideration is the price of a contract.
2. A contract without consideration is void.
3. Consideration must be decided by the parties
themselves. Consideration can be fulfilled by third
parties.
4. Consideration must have some legal value in the eyes of
law.
5. Strangers to a contract have no claims.

14. C- Consent
1. Consent must be free and genuine.
2. A consent is not free and genuine when it is induced by =
- coercion
- undue influence
- fraud
- misrepresentation
- mistake

15. THANKYOU…