SlideShare a Scribd company logo
ASSIGNMENT
ON
LEGAL ASPECTS OF BUSINESS
OF
“INDIAN CONTRACT ACT 1872”
SUBMITTED
TO
MR. MOHAMMAD IMRAN SHAIKH
SUBMITTED BY
SR NO.

ENROLLMENT NO

NAME

1
2
3

128050592001
128050592004
128050592013

AMBER THAKUR
PRIYANKA BACHKANIWALA
RAKSHIT BHAVSAR

4
5
6

128050592024
128050592051
128050592060

KOSHA DOSHI
SONAM LALWANI
VINAY MODI
THE INDIAN
CONTRACT
ACT, 1872
CONTRACT
 OFFER - According to Sec.2(a), when a
person made a proposal, when he signifies
to another his willingness to do or to

abstain from doing something.
AGREEMENT = OFFER + ACCEPTANCE
CONSENSUS - AD – IDEMAccording to Sec.13, meeting of minds or
identity of minds or receiving the same
thing in same sense at same time
Agreement

Legal Obligation
Contract

“All agreements are contracts but all
contracts are not agreements.”

CONTRACT = AGREEMENT +
ENFORCIBILITY BEFORE LAW
ESSENTIAL ELEMENTS OF A
VALID CONTRACT (Sec.10)
1.Offer & acceptance.
2.Intention to create legal relationship.
3.Consensus - ad - idem.
4.Consideration.
5.Capacity to contract.
6.Free consent.
7.Legality of object.
8.Possibility of performance.
9.Writing & registration.
TYPES OF CONTRACTS
VALID CONTRACTS
 Absolute contract
 Contingent contract(Sec. 31-36)
 Express contract
 Implied/Quasi contract(Sec.68- 72)
Valid contract - If all the condition are
fulfilled it is called as a valid contract.
Contingent contract - In a contract to do
or not to do something, if an event is
collateral, does or doesn't happen.
Express contract - When contracts are
either in writing or in oral.
Implied contract - When contracts are
neither in writing nor in oral.
Absolute contract - A contract which is
not dependent on fulfillment of any
condition.
INVALID CONTRACTS
Void contract

Is void(Void - ab - initio)
Becomes void
Voidable contract
Illegal contract
Unenforceable contract
Invalid contract - In a contact if any one
condition is not fulfilled.
Is void (Void-ab-initio) - An agreement
which is not valid from the beginning.
Becomes void - An agreement which is
valid in the beginning but due to some
supervening impossibility the contract
becomes void.
Voidable contract - A contract which is
valid unless until avoided by either the
party.
Illegal contract - An agreement
forbidden by law.
Unenforceable contract - It is valid but
due to some technical defect the
contract becomes void. In case defects
are removed the contract is
enforceable.(lack of registration, lack of
signature etc.,)
OTHER TYPES OF CONTRACTS

•Executed contract
•Executory contract
•Unilateral contract
•Bilateral contract
Executed contract - In a contract where both
the parties have performed their obligation,
there is remaining nothing to perform.
Executory contract - In a contract where both
the parties are yet to perform their obligation.
Unilateral contract - In a contract one party
has performed his obligation and other
person is yet to perform his obligation.
Bilateral contract - In a contract where both
the parties have performed their obligation.
Bilateral & Executory are same and inter changeable.
OFFER
According to Sec.2(a), when a
person made a
proposal, when he signifies
to another his willingness to
do or to abstain from doing
something.
TYPES OF OFFER








Express offer
Implied offer
Specific offer
General offer
Cross offer
Counter offer
Standing offer
Express offer - When offer is given to
another person either in writing or in oral.
Implied offer - When offer is given to
another person neither in writing nor in
oral.
Specific offer - When offer is given to a
specific person.
General offer - When offer is given to
entire world at a large.(Carlill Vs. Carbolic
smoke ball Co.,)
Cross offer - When both the persons are
making identical offers to each other in
ignorance of other‟s offer.
Counter offer - When both the persons are
making offers to each other which a re not
identical in ignorance of other‟s offer.
Standing offer -An offer which remains
continuously enforceable for a certain
period of time.
LEGAL RULES FOR OFFER
 Offer must be given with an intention

to create a legal relationship.(Balfour
Vs. Balfour)
 Offer must be definite.(Taylor Vs.

Portington)
 There is a clear cut difference between

offer, invitation to offer, invitation to
sale. (Harris Vs. Nickerson)
Offer must be communicated. (Fitch Vs.
Snedkar)
Mere statement of price of price is not an
offer.(Harvey Vs. Facey)
ACCEPTANCE
According to sec.2(b), when
a person made a proposal to
another to whom proposal is
made, if proposal is assented
there to, it is called
acceptance.
LEGAL RULES FOR ACCEPTANCE
• Acceptance must be given as per the
mode prescribed by the offerer.
• Acceptance must be given before the
lapse of time or within reasonable time.

• Acceptance must be unconditional.
• Acceptance may be given by any person in
case of general offer.
• Acceptance may be given by any specific
person in case of specific offer.
• Acceptance must be communicated.
(Bordgon Vs. Metropolitan Rly. Co.)
• Mental acceptance is no acceptance or
acceptance must not be derived from
silence.
• Acceptance must not be precedent to offer.
CONSIDERATION
According to sec 2(d) consideration is
defined as “when at the desire of the
promisor , or 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 an act or
abstinence or promise is called a
consideration for the promise .
When a party to an agreement promises to
do something he must get “something” in
return .This “something” is defined as
consideration.
LEGAL RULES AS TO CONSIDERATION
1)It must move at the desire of the promisor.
[Durga Prasad v. Baldeo ]
2)It may move by the promisee .
[Chinnaya v. Ramayya ]
3)It must be past ,present or future .
4)It need not be adequate .
5)It must be real .
6)It must not be illegal , immoral or opposed
to public policy .
STRANGER TO CONTRACT
It is general rule of contract that only
parties to contract can sue & be sued on
that contract . This rule is known as
‘Doctrine of privity’ i.e. relationship
between the parties to contract .
Exceptions
1)A trust or a charge .
2)Marriage settlement , partition or other
family arrangements .
3)Estoppel
4)Assignment of contract .
5)Contract with agent .
6)Covenants running with land .
Contract without consideration is
void – Exceptions









Love & affection .
[Venkataswamy v. Rangaswamy]
Compensation for voluntary service
Promise to pay a time – barred
debt .
Completed gift .
Agency sec (185) .
Charity .
Contract of bailment sec(148 ) .
No consideration no contract
 [Abdul Aziz v. Masum Ali]
 [Kedarnath v. Gauri Mohamed ]
CAPACITY
TO
CONTRACT
Capacity to contract
Following are the condition for a person
to enter into contract
 He must be major
 He must be sound mind
 He must not be disqualified by any
other law.
Disqualified persons to enter
into a contract
a) Minor
b) unsound person
c)others
i.e. alien enemy,
insolvent,
convict,
company/corporation against
MOA / AOA .
Minor
According to Indian majority act
sec(3) minor is defined as any
person under the age of 18 years .
In the following cases a person is
said to be minor if he does not
complete the age of 21 years
a) any person under the guardian &
wards act ,1890
b)any person which comes under
superintendence of law/legal
representative
Rules governing minors
agreement

 Rule 1 : judges are counselors ,

jury is the servant ,
law is the guardian .
 Rule 2:in case minor entered into a
contract which is unlawful , illegal
, immoral he is also prosecutable &
punishable under the relevant law.
Legal rules
 An agreement with minor is void

ab initio
 Minor can be promisee
 Minor cannot ratify his agreement

on attaining the age of majority









Minor as a shareholder ,
Minor as a partner,
Minor as a agent ,
Minor as a member of trade
union ,
No estoppel against minor ,
He can plead his minority ,
He can enter into contract for
his necessary
On behalf of minor his parents
, guardian or any other person
can enter into void contract to
acquire movable property.
Unsound person
 According to sec(12) a person

generally sound , occasionally
unsound can enter into a contract
when he of sound mind
 A person generally unsound
occasionally sound can enter onto
contract when he is sound mind .
Persons of unsound
mind
1)Lunatic ,
2)Idiots ,
3)Drunken or intoxicated persons .
FREE
CONSENT


According to Sec 10 of the Indian
Contract Act one of the essentials
of a valid contract is “Free
Consent”
 Sec 13 defines “consent” as “Two
or more persons are said to consent
when they agree upon the same
thing in the same sense". According
to Sec 14, consent is said to be free
when it is not caused by:
1.Coercion
2.Undue influence
3.Fraud
4.Misrepresentation
5.Mistake
COERCION
According to Sec 15 coercion means
“Committing or threaten to commit any
act forbidden by Indian Penal Code 1860
or unlawful detaining or threatening to
detaining any other persons property with
a view to enter into an agreement. It is
immaterial whether the IPC is or is not in
force where the coercion is employed”

The threat amounting to coercion need
not necessarily be from a party to
contract , it may also proceed from a
stranger to the contract.
Consent is said to be caused by coercion when
obtained by:
1.The committing or threatening to commit any
act forbidden by the Indian Penal Code
2.The unlawful detaining or threatening to detain
any property
It is not important whether the IPC is or not in
force where the coercion is taking place.
For example A and B , both Indians are on a
voyage trip to America when the ship is on the
Atlantic ocean; B threatens A that if he doesn‟t
transfer his property to B‟s name then he will
push him into the water. Now though the IPC is
not in force on the Atlantic ocean it is still
considered a coercion.
Contingent Contract(sec 31)
A contingent contract is a contract to
do or not to do something, if some
event, collateral to such contract, does
or does not happen. It is also called a
conditional contract.
Example:
 A contracts to pay B

Rs.10,000 if B‟s house is
burnt. This is a
contingent contract.
DISCHARGE
OF A
CONTRACT
DISCHARGE OF A
CONTRACT
DISCHARGE BY PERFORMANCE
DISCHARGE BY AGREEMENT OR
CONSENT
DISCHARGE BY IMPOSSIBILITY OF
PERFORMANCE
DISCHARGE BY LAPSE OF TIME
DISCHARGE BY OPERATION OF LAW
DISHARGE BY BREACH OF CONTRACT
DISCHARGE BY PERFORMANCE
 ACTUAL PERFORMANCE

When both parties perform their promises
& there is nothing remaining to perform

 ATTEMPTED PERFORMANCE
When the promisor offers to perform his
obligation ,but promisee refuses to accept
the performance. It is also known as tender
DISCHARGE BY
AGREEMENT OR CONSENT
 NOVATION (Sec 62): New contract substituted for old









contract with the same or different parties
RESCISSION (Sec 62) : When some or all terms of a
contract are cancelled
ALTERATION (Sec 62):When one or more terms of
a contract is/are altered by the mutual consent of the
parties to the contract
REMISSION (Sec 63) :Acceptance of a lesser
fulfillment of the promise made.
WAIVER :Mutual abandonment of the right by the
parties to contract
MERGER :When an inferior right accruing to a party
to contract merges into a superior right accruing to
the same party
DISCHARGE BY IMPOSSIBILITY
OF PERFORMANCE





KNOWN TO PARTIES
UNKNOWN TO PARTIES
SUBSEQUENT IMPOSSIBILITY
SUPERVENNING IMPOSSIBILITY (Sec 56)
Destruction of subject matter
Non-existence of state of things
Death or incapacity of personal
services
Change of law
Outbreak of war
DISCHARGE BY
LAPSE OF TIME
 THE LIMITATION ACT

1963, CLEARLY STATES THAT A
CONTRACT SHOULD BE
PERFORMED WITHIN A
SPECIFIED TIME CALLED PERIOD
OF LIMITATION
 IF IT IS NOT PERFORMED AND IF
THE PROMISEE TAKES NO
ACTION WITHIN THE LIMITATION
TIME, THEN HE IS DEPRIVED OF
HIS REMEDY AT LAW
DISCHARGE BY OPERATION OF LAW
DEATH
MERGER
INSOLVENCY
UNAUTHORISED ALTERATION OF

THE TERMS OF A WRITTEN
AGREEMENT
RIGHTS & LIABILITIES VESTING IN
THE SAME PERSON
DISCHARGE BY BREACH OF
CONTRACT
ACTUAL BREACH :

At the time of performance

During the performance

ANTICIPATORY BREACH

By the act of promisor


(implied repudiation)
By renunciation of obligation
(express repudiation)
REMEDIES FOR
BREACH OF
CONTRACT
Remedies for breach of contract
A remedy is the means given by law for
the enforcement of a right. When there is
a
breach
of
contract
by
one
party, following remedies are available to
the injured party:
1. Rescission
2. Suit for Damages
3. Suit upon Quantum Meruit
4. Specific Performance of Contract
5. Injunction
M.C. Chacko v. State Bank of
Travancore
1970 AIR 500
[Section 25(1) of Indian Contract Act, Privity Of
Contract, Exceptions, Section 40]
FACTS:
 H bank had an overdraft account with

State Bank. MC Chacko was the manager
of H bank and his father K had
guaranteed the repayment of debt. K
gifted his properties to members of his
family. The gift deed provided that liability
if any under the said guarantee should be
met either by MC personally or through
property gifted to him under the said
deed. State Bank sued all the heirs under
the deed along with MC; albeit limitation
period to sue on letter of guarantee had
already passed.
ISSUES:
1) Whether a „charge‟ was created in
favor of State Bank under the said
deed to satisfy the debt under the
letter of guarantee?
2) Whether the charge, assuming
that a charge exists, is enforceable
by bank when it is not a party to the
deed?
HELD:
A ‘charge’ may be created on immovable property
when either through express words or implied
from deed, it is clear that party intended to make
a specified property or fund, belonging to
him, liable for debt due by him.
In present case, no such charge was created in
favour of State Bank—the deed merely set out an
internal arrangement between the donor and
members of family which conferred a right of
indemnity upon them against M.C. Chacko and
his inherited property—however, no intention to
convert a personal debt into a secured debt in
favour of the bank could not be inferred.
MEANINGS
 COERCION

-A

defense asserted in a criminal prosecution that a person
who committed a crime did not do so of his or her own free will, but only
because the individual was compelled by another through the use of
physical force or threat of immediate serious bodily injury or death.

 ALBEIT - Even though; although; notwithstanding
 ESTOPPEL - A legal principle that bars a party from denying or alleging
a certain fact owing to that party's previous conduct, allegation, or denial.

 COVENANT - An agreement, contract, or written promise between two
individuals that frequently constitutes a pledge to do or refrain from doing
something.

 RESCISSION - The abrogation of a contract, effective from its
inception, thereby restoring the parties to the positions they would have
occupied if no contract had ever been formed.

 PRIVITY - A close, direct, or successive relationship; having a mutual
interest or right.
Indian Contract Act-Legal Aspects of Business

More Related Content

What's hot

Presentation on companies act 2013... (2)
Presentation on companies act 2013... (2)Presentation on companies act 2013... (2)
Presentation on companies act 2013... (2)
kamal ega
 
Essential of valid contract
Essential of valid contract Essential of valid contract
Essential of valid contract
Prachi Porwal
 
Negotiable instruments
Negotiable instrumentsNegotiable instruments
Negotiable instruments
Busines
 
Essentials of a valid contract
Essentials of a valid contractEssentials of a valid contract
Essentials of a valid contract
Sandeep Singh Saini
 
Industrial disputes act
Industrial disputes actIndustrial disputes act
Industrial disputes act
Suryadipta Dutta
 
Contract of Indemnity and Guarantee
Contract of Indemnity and GuaranteeContract of Indemnity and Guarantee
Contract of Indemnity and Guarantee
Faizanur1984
 
Free consent
Free consentFree consent
Free consent
Gurjit
 
Presentation on The competition act(2002)
Presentation on The competition act(2002)Presentation on The competition act(2002)
Presentation on The competition act(2002)
satya pal
 
Capacity Of Parties To Enter In To Contract
Capacity Of  Parties To Enter In To  ContractCapacity Of  Parties To Enter In To  Contract
Capacity Of Parties To Enter In To Contract
Abhisha Paul
 
Business law
Business lawBusiness law
Business law
Sri Latha Pattapu
 
Competition act, 2002
Competition act, 2002Competition act, 2002
Competition act, 2002
Education Institution
 
INDIAN CONTRACT ACT
INDIAN CONTRACT ACT INDIAN CONTRACT ACT
INDIAN CONTRACT ACT
Harsh Tiwari
 
Chapter 1 nature of contract
Chapter 1 nature of contractChapter 1 nature of contract
Chapter 1 nature of contract
nattusasi
 
Classification of Contract
Classification of ContractClassification of Contract
Classification of Contract
Preeti Sikder
 
Contract of Indemnity
Contract of IndemnityContract of Indemnity
Contract of Indemnity
Amrita Singh
 
Adjudication
AdjudicationAdjudication
Adjudication
Tuhin Sarkar
 
Business law ppt
Business law pptBusiness law ppt
Business law ppt
Jayat Rathore
 
Competition Act 2002- April 2016,
Competition Act 2002- April 2016,Competition Act 2002- April 2016,
Competition Act 2002- April 2016,
Pooja Chetri
 
The indian trade union act 1926
The indian trade union act 1926The indian trade union act 1926
The indian trade union act 1926
Saneem Nazim
 
Indian Partnership Act 1932
Indian Partnership Act 1932 Indian Partnership Act 1932
Indian Partnership Act 1932
Dr.Aravind TS
 

What's hot (20)

Presentation on companies act 2013... (2)
Presentation on companies act 2013... (2)Presentation on companies act 2013... (2)
Presentation on companies act 2013... (2)
 
Essential of valid contract
Essential of valid contract Essential of valid contract
Essential of valid contract
 
Negotiable instruments
Negotiable instrumentsNegotiable instruments
Negotiable instruments
 
Essentials of a valid contract
Essentials of a valid contractEssentials of a valid contract
Essentials of a valid contract
 
Industrial disputes act
Industrial disputes actIndustrial disputes act
Industrial disputes act
 
Contract of Indemnity and Guarantee
Contract of Indemnity and GuaranteeContract of Indemnity and Guarantee
Contract of Indemnity and Guarantee
 
Free consent
Free consentFree consent
Free consent
 
Presentation on The competition act(2002)
Presentation on The competition act(2002)Presentation on The competition act(2002)
Presentation on The competition act(2002)
 
Capacity Of Parties To Enter In To Contract
Capacity Of  Parties To Enter In To  ContractCapacity Of  Parties To Enter In To  Contract
Capacity Of Parties To Enter In To Contract
 
Business law
Business lawBusiness law
Business law
 
Competition act, 2002
Competition act, 2002Competition act, 2002
Competition act, 2002
 
INDIAN CONTRACT ACT
INDIAN CONTRACT ACT INDIAN CONTRACT ACT
INDIAN CONTRACT ACT
 
Chapter 1 nature of contract
Chapter 1 nature of contractChapter 1 nature of contract
Chapter 1 nature of contract
 
Classification of Contract
Classification of ContractClassification of Contract
Classification of Contract
 
Contract of Indemnity
Contract of IndemnityContract of Indemnity
Contract of Indemnity
 
Adjudication
AdjudicationAdjudication
Adjudication
 
Business law ppt
Business law pptBusiness law ppt
Business law ppt
 
Competition Act 2002- April 2016,
Competition Act 2002- April 2016,Competition Act 2002- April 2016,
Competition Act 2002- April 2016,
 
The indian trade union act 1926
The indian trade union act 1926The indian trade union act 1926
The indian trade union act 1926
 
Indian Partnership Act 1932
Indian Partnership Act 1932 Indian Partnership Act 1932
Indian Partnership Act 1932
 

Similar to Indian Contract Act-Legal Aspects of Business

unit 1 (indian-contract).ppt
unit 1 (indian-contract).pptunit 1 (indian-contract).ppt
unit 1 (indian-contract).ppt
Anand VA
 
Mistakes of law attribution
Mistakes of law attributionMistakes of law attribution
Mistakes of law attribution
vimalkanth1990
 
22914162 the-indian-contract-act-1872
22914162 the-indian-contract-act-187222914162 the-indian-contract-act-1872
22914162 the-indian-contract-act-1872
Abhilash Chandra Dey
 
The indian-contract-act-1872
The indian-contract-act-1872The indian-contract-act-1872
The indian-contract-act-1872
ydmisra
 
The indian-contract-act-1872 by Neeraj Bhandari ( Surkhet.Nepal )
The indian-contract-act-1872 by Neeraj Bhandari ( Surkhet.Nepal )The indian-contract-act-1872 by Neeraj Bhandari ( Surkhet.Nepal )
The indian-contract-act-1872 by Neeraj Bhandari ( Surkhet.Nepal )
Neeraj Bhandari
 
indian contract act-1872
indian contract act-1872indian contract act-1872
indian contract act-1872
Ujash Patel
 
I.m.p
I.m.pI.m.p
Indian Contratc Act MIM
Indian Contratc Act  MIMIndian Contratc Act  MIM
Indian Contratc Act MIM
sathyaraj
 
22914162 the-indian-contract-act-1872
22914162 the-indian-contract-act-187222914162 the-indian-contract-act-1872
22914162 the-indian-contract-act-1872
Harshal Shirsath
 
22914162 the-indian-contract-act-1872
22914162 the-indian-contract-act-187222914162 the-indian-contract-act-1872
22914162 the-indian-contract-act-1872
shahabaz2823
 
MBA -Sem1-Indian-Contract-Act-Presentation.pptx
MBA -Sem1-Indian-Contract-Act-Presentation.pptxMBA -Sem1-Indian-Contract-Act-Presentation.pptx
MBA -Sem1-Indian-Contract-Act-Presentation.pptx
ssusere1704e
 
Indian Contract Act ppt.ppt
Indian Contract Act ppt.pptIndian Contract Act ppt.ppt
Indian Contract Act ppt.ppt
SaurabhRaj666599
 
Deepak Jain.ppt
Deepak Jain.pptDeepak Jain.ppt
Deepak Jain.ppt
Mbabba2
 
The indian contract act, 1872 for class
The  indian contract act,  1872 for classThe  indian contract act,  1872 for class
The indian contract act, 1872 for class
Jasdeep Sran
 
BCom Semester 1 Indian Contract Act 1872 संविदा अधिनियम के बारे मे
BCom Semester 1 Indian Contract Act 1872 संविदा अधिनियम के बारे मेBCom Semester 1 Indian Contract Act 1872 संविदा अधिनियम के बारे मे
BCom Semester 1 Indian Contract Act 1872 संविदा अधिनियम के बारे मे
Faizu21
 
The indian contract act, 1872
The  indian contract act,  1872The  indian contract act,  1872
The indian contract act, 1872
Prakash Mishra
 
BCom-Sem1-Indian-Contract-Act-Presentation.ppt
BCom-Sem1-Indian-Contract-Act-Presentation.pptBCom-Sem1-Indian-Contract-Act-Presentation.ppt
BCom-Sem1-Indian-Contract-Act-Presentation.ppt
SwapnilMishra90
 
BCom-Sem1-Indian-Contract-Act-Presentation.ppt
BCom-Sem1-Indian-Contract-Act-Presentation.pptBCom-Sem1-Indian-Contract-Act-Presentation.ppt
BCom-Sem1-Indian-Contract-Act-Presentation.ppt
DR GIRI PRASAD REMINISETTY
 
BCom-Sem1-Indian-Contract-Act-Presentation.ppt
BCom-Sem1-Indian-Contract-Act-Presentation.pptBCom-Sem1-Indian-Contract-Act-Presentation.ppt
BCom-Sem1-Indian-Contract-Act-Presentation.ppt
SwapnilMishra90
 
Indian-Contract-Act-Presentation.ppt
Indian-Contract-Act-Presentation.pptIndian-Contract-Act-Presentation.ppt
Indian-Contract-Act-Presentation.ppt
AbhishekSinghRathore29
 

Similar to Indian Contract Act-Legal Aspects of Business (20)

unit 1 (indian-contract).ppt
unit 1 (indian-contract).pptunit 1 (indian-contract).ppt
unit 1 (indian-contract).ppt
 
Mistakes of law attribution
Mistakes of law attributionMistakes of law attribution
Mistakes of law attribution
 
22914162 the-indian-contract-act-1872
22914162 the-indian-contract-act-187222914162 the-indian-contract-act-1872
22914162 the-indian-contract-act-1872
 
The indian-contract-act-1872
The indian-contract-act-1872The indian-contract-act-1872
The indian-contract-act-1872
 
The indian-contract-act-1872 by Neeraj Bhandari ( Surkhet.Nepal )
The indian-contract-act-1872 by Neeraj Bhandari ( Surkhet.Nepal )The indian-contract-act-1872 by Neeraj Bhandari ( Surkhet.Nepal )
The indian-contract-act-1872 by Neeraj Bhandari ( Surkhet.Nepal )
 
indian contract act-1872
indian contract act-1872indian contract act-1872
indian contract act-1872
 
I.m.p
I.m.pI.m.p
I.m.p
 
Indian Contratc Act MIM
Indian Contratc Act  MIMIndian Contratc Act  MIM
Indian Contratc Act MIM
 
22914162 the-indian-contract-act-1872
22914162 the-indian-contract-act-187222914162 the-indian-contract-act-1872
22914162 the-indian-contract-act-1872
 
22914162 the-indian-contract-act-1872
22914162 the-indian-contract-act-187222914162 the-indian-contract-act-1872
22914162 the-indian-contract-act-1872
 
MBA -Sem1-Indian-Contract-Act-Presentation.pptx
MBA -Sem1-Indian-Contract-Act-Presentation.pptxMBA -Sem1-Indian-Contract-Act-Presentation.pptx
MBA -Sem1-Indian-Contract-Act-Presentation.pptx
 
Indian Contract Act ppt.ppt
Indian Contract Act ppt.pptIndian Contract Act ppt.ppt
Indian Contract Act ppt.ppt
 
Deepak Jain.ppt
Deepak Jain.pptDeepak Jain.ppt
Deepak Jain.ppt
 
The indian contract act, 1872 for class
The  indian contract act,  1872 for classThe  indian contract act,  1872 for class
The indian contract act, 1872 for class
 
BCom Semester 1 Indian Contract Act 1872 संविदा अधिनियम के बारे मे
BCom Semester 1 Indian Contract Act 1872 संविदा अधिनियम के बारे मेBCom Semester 1 Indian Contract Act 1872 संविदा अधिनियम के बारे मे
BCom Semester 1 Indian Contract Act 1872 संविदा अधिनियम के बारे मे
 
The indian contract act, 1872
The  indian contract act,  1872The  indian contract act,  1872
The indian contract act, 1872
 
BCom-Sem1-Indian-Contract-Act-Presentation.ppt
BCom-Sem1-Indian-Contract-Act-Presentation.pptBCom-Sem1-Indian-Contract-Act-Presentation.ppt
BCom-Sem1-Indian-Contract-Act-Presentation.ppt
 
BCom-Sem1-Indian-Contract-Act-Presentation.ppt
BCom-Sem1-Indian-Contract-Act-Presentation.pptBCom-Sem1-Indian-Contract-Act-Presentation.ppt
BCom-Sem1-Indian-Contract-Act-Presentation.ppt
 
BCom-Sem1-Indian-Contract-Act-Presentation.ppt
BCom-Sem1-Indian-Contract-Act-Presentation.pptBCom-Sem1-Indian-Contract-Act-Presentation.ppt
BCom-Sem1-Indian-Contract-Act-Presentation.ppt
 
Indian-Contract-Act-Presentation.ppt
Indian-Contract-Act-Presentation.pptIndian-Contract-Act-Presentation.ppt
Indian-Contract-Act-Presentation.ppt
 

More from Priyanka Bachkaniwala

Conflicts of interest in investment banking
Conflicts of interest in investment bankingConflicts of interest in investment banking
Conflicts of interest in investment banking
Priyanka Bachkaniwala
 
BUSINESS ETHICS AND CORPORATE GOVERNANCE -CORPORATE SOCIAL RESPONSIBILITY CAS...
BUSINESS ETHICS AND CORPORATE GOVERNANCE -CORPORATE SOCIAL RESPONSIBILITY CAS...BUSINESS ETHICS AND CORPORATE GOVERNANCE -CORPORATE SOCIAL RESPONSIBILITY CAS...
BUSINESS ETHICS AND CORPORATE GOVERNANCE -CORPORATE SOCIAL RESPONSIBILITY CAS...
Priyanka Bachkaniwala
 
Reserve Bank of India- Management of Financial Services project
Reserve Bank of India- Management of Financial Services projectReserve Bank of India- Management of Financial Services project
Reserve Bank of India- Management of Financial Services project
Priyanka Bachkaniwala
 
Mutual fund ppt
Mutual fund pptMutual fund ppt
Mutual fund ppt
Priyanka Bachkaniwala
 
Dividend policies-financial mgt
Dividend policies-financial mgtDividend policies-financial mgt
Dividend policies-financial mgt
Priyanka Bachkaniwala
 
Final hr case study ppt
Final hr case study pptFinal hr case study ppt
Final hr case study ppt
Priyanka Bachkaniwala
 
Nirma final ppt
Nirma final pptNirma final ppt
Nirma final ppt
Priyanka Bachkaniwala
 
Pom final boeing
Pom final boeingPom final boeing
Pom final boeing
Priyanka Bachkaniwala
 

More from Priyanka Bachkaniwala (8)

Conflicts of interest in investment banking
Conflicts of interest in investment bankingConflicts of interest in investment banking
Conflicts of interest in investment banking
 
BUSINESS ETHICS AND CORPORATE GOVERNANCE -CORPORATE SOCIAL RESPONSIBILITY CAS...
BUSINESS ETHICS AND CORPORATE GOVERNANCE -CORPORATE SOCIAL RESPONSIBILITY CAS...BUSINESS ETHICS AND CORPORATE GOVERNANCE -CORPORATE SOCIAL RESPONSIBILITY CAS...
BUSINESS ETHICS AND CORPORATE GOVERNANCE -CORPORATE SOCIAL RESPONSIBILITY CAS...
 
Reserve Bank of India- Management of Financial Services project
Reserve Bank of India- Management of Financial Services projectReserve Bank of India- Management of Financial Services project
Reserve Bank of India- Management of Financial Services project
 
Mutual fund ppt
Mutual fund pptMutual fund ppt
Mutual fund ppt
 
Dividend policies-financial mgt
Dividend policies-financial mgtDividend policies-financial mgt
Dividend policies-financial mgt
 
Final hr case study ppt
Final hr case study pptFinal hr case study ppt
Final hr case study ppt
 
Nirma final ppt
Nirma final pptNirma final ppt
Nirma final ppt
 
Pom final boeing
Pom final boeingPom final boeing
Pom final boeing
 

Recently uploaded

Oliver Asks for More by Charles Dickens (9)
Oliver Asks for More by Charles Dickens (9)Oliver Asks for More by Charles Dickens (9)
Oliver Asks for More by Charles Dickens (9)
nitinpv4ai
 
How Barcodes Can Be Leveraged Within Odoo 17
How Barcodes Can Be Leveraged Within Odoo 17How Barcodes Can Be Leveraged Within Odoo 17
How Barcodes Can Be Leveraged Within Odoo 17
Celine George
 
spot a liar (Haiqa 146).pptx Technical writhing and presentation skills
spot a liar (Haiqa 146).pptx Technical writhing and presentation skillsspot a liar (Haiqa 146).pptx Technical writhing and presentation skills
spot a liar (Haiqa 146).pptx Technical writhing and presentation skills
haiqairshad
 
HYPERTENSION - SLIDE SHARE PRESENTATION.
HYPERTENSION - SLIDE SHARE PRESENTATION.HYPERTENSION - SLIDE SHARE PRESENTATION.
HYPERTENSION - SLIDE SHARE PRESENTATION.
deepaannamalai16
 
A Free 200-Page eBook ~ Brain and Mind Exercise.pptx
A Free 200-Page eBook ~ Brain and Mind Exercise.pptxA Free 200-Page eBook ~ Brain and Mind Exercise.pptx
A Free 200-Page eBook ~ Brain and Mind Exercise.pptx
OH TEIK BIN
 
BIOLOGY NATIONAL EXAMINATION COUNCIL (NECO) 2024 PRACTICAL MANUAL.pptx
BIOLOGY NATIONAL EXAMINATION COUNCIL (NECO) 2024 PRACTICAL MANUAL.pptxBIOLOGY NATIONAL EXAMINATION COUNCIL (NECO) 2024 PRACTICAL MANUAL.pptx
BIOLOGY NATIONAL EXAMINATION COUNCIL (NECO) 2024 PRACTICAL MANUAL.pptx
RidwanHassanYusuf
 
مصحف القراءات العشر أعد أحرف الخلاف سمير بسيوني.pdf
مصحف القراءات العشر   أعد أحرف الخلاف سمير بسيوني.pdfمصحف القراءات العشر   أعد أحرف الخلاف سمير بسيوني.pdf
مصحف القراءات العشر أعد أحرف الخلاف سمير بسيوني.pdf
سمير بسيوني
 
RHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem students
RHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem studentsRHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem students
RHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem students
Himanshu Rai
 
Temple of Asclepius in Thrace. Excavation results
Temple of Asclepius in Thrace. Excavation resultsTemple of Asclepius in Thrace. Excavation results
Temple of Asclepius in Thrace. Excavation results
Krassimira Luka
 
Skimbleshanks-The-Railway-Cat by T S Eliot
Skimbleshanks-The-Railway-Cat by T S EliotSkimbleshanks-The-Railway-Cat by T S Eliot
Skimbleshanks-The-Railway-Cat by T S Eliot
nitinpv4ai
 
How to Predict Vendor Bill Product in Odoo 17
How to Predict Vendor Bill Product in Odoo 17How to Predict Vendor Bill Product in Odoo 17
How to Predict Vendor Bill Product in Odoo 17
Celine George
 
Electric Fetus - Record Store Scavenger Hunt
Electric Fetus - Record Store Scavenger HuntElectric Fetus - Record Store Scavenger Hunt
Electric Fetus - Record Store Scavenger Hunt
RamseyBerglund
 
Wound healing PPT
Wound healing PPTWound healing PPT
Wound healing PPT
Jyoti Chand
 
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptxPrésentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
siemaillard
 
RESULTS OF THE EVALUATION QUESTIONNAIRE.pptx
RESULTS OF THE EVALUATION QUESTIONNAIRE.pptxRESULTS OF THE EVALUATION QUESTIONNAIRE.pptx
RESULTS OF THE EVALUATION QUESTIONNAIRE.pptx
zuzanka
 
Bossa N’ Roll Records by Ismael Vazquez.
Bossa N’ Roll Records by Ismael Vazquez.Bossa N’ Roll Records by Ismael Vazquez.
Bossa N’ Roll Records by Ismael Vazquez.
IsmaelVazquez38
 
Jemison, MacLaughlin, and Majumder "Broadening Pathways for Editors and Authors"
Jemison, MacLaughlin, and Majumder "Broadening Pathways for Editors and Authors"Jemison, MacLaughlin, and Majumder "Broadening Pathways for Editors and Authors"
Jemison, MacLaughlin, and Majumder "Broadening Pathways for Editors and Authors"
National Information Standards Organization (NISO)
 
Leveraging Generative AI to Drive Nonprofit Innovation
Leveraging Generative AI to Drive Nonprofit InnovationLeveraging Generative AI to Drive Nonprofit Innovation
Leveraging Generative AI to Drive Nonprofit Innovation
TechSoup
 
Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...
Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...
Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...
TechSoup
 
NEWSPAPERS - QUESTION 1 - REVISION POWERPOINT.pptx
NEWSPAPERS - QUESTION 1 - REVISION POWERPOINT.pptxNEWSPAPERS - QUESTION 1 - REVISION POWERPOINT.pptx
NEWSPAPERS - QUESTION 1 - REVISION POWERPOINT.pptx
iammrhaywood
 

Recently uploaded (20)

Oliver Asks for More by Charles Dickens (9)
Oliver Asks for More by Charles Dickens (9)Oliver Asks for More by Charles Dickens (9)
Oliver Asks for More by Charles Dickens (9)
 
How Barcodes Can Be Leveraged Within Odoo 17
How Barcodes Can Be Leveraged Within Odoo 17How Barcodes Can Be Leveraged Within Odoo 17
How Barcodes Can Be Leveraged Within Odoo 17
 
spot a liar (Haiqa 146).pptx Technical writhing and presentation skills
spot a liar (Haiqa 146).pptx Technical writhing and presentation skillsspot a liar (Haiqa 146).pptx Technical writhing and presentation skills
spot a liar (Haiqa 146).pptx Technical writhing and presentation skills
 
HYPERTENSION - SLIDE SHARE PRESENTATION.
HYPERTENSION - SLIDE SHARE PRESENTATION.HYPERTENSION - SLIDE SHARE PRESENTATION.
HYPERTENSION - SLIDE SHARE PRESENTATION.
 
A Free 200-Page eBook ~ Brain and Mind Exercise.pptx
A Free 200-Page eBook ~ Brain and Mind Exercise.pptxA Free 200-Page eBook ~ Brain and Mind Exercise.pptx
A Free 200-Page eBook ~ Brain and Mind Exercise.pptx
 
BIOLOGY NATIONAL EXAMINATION COUNCIL (NECO) 2024 PRACTICAL MANUAL.pptx
BIOLOGY NATIONAL EXAMINATION COUNCIL (NECO) 2024 PRACTICAL MANUAL.pptxBIOLOGY NATIONAL EXAMINATION COUNCIL (NECO) 2024 PRACTICAL MANUAL.pptx
BIOLOGY NATIONAL EXAMINATION COUNCIL (NECO) 2024 PRACTICAL MANUAL.pptx
 
مصحف القراءات العشر أعد أحرف الخلاف سمير بسيوني.pdf
مصحف القراءات العشر   أعد أحرف الخلاف سمير بسيوني.pdfمصحف القراءات العشر   أعد أحرف الخلاف سمير بسيوني.pdf
مصحف القراءات العشر أعد أحرف الخلاف سمير بسيوني.pdf
 
RHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem students
RHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem studentsRHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem students
RHEOLOGY Physical pharmaceutics-II notes for B.pharm 4th sem students
 
Temple of Asclepius in Thrace. Excavation results
Temple of Asclepius in Thrace. Excavation resultsTemple of Asclepius in Thrace. Excavation results
Temple of Asclepius in Thrace. Excavation results
 
Skimbleshanks-The-Railway-Cat by T S Eliot
Skimbleshanks-The-Railway-Cat by T S EliotSkimbleshanks-The-Railway-Cat by T S Eliot
Skimbleshanks-The-Railway-Cat by T S Eliot
 
How to Predict Vendor Bill Product in Odoo 17
How to Predict Vendor Bill Product in Odoo 17How to Predict Vendor Bill Product in Odoo 17
How to Predict Vendor Bill Product in Odoo 17
 
Electric Fetus - Record Store Scavenger Hunt
Electric Fetus - Record Store Scavenger HuntElectric Fetus - Record Store Scavenger Hunt
Electric Fetus - Record Store Scavenger Hunt
 
Wound healing PPT
Wound healing PPTWound healing PPT
Wound healing PPT
 
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptxPrésentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
 
RESULTS OF THE EVALUATION QUESTIONNAIRE.pptx
RESULTS OF THE EVALUATION QUESTIONNAIRE.pptxRESULTS OF THE EVALUATION QUESTIONNAIRE.pptx
RESULTS OF THE EVALUATION QUESTIONNAIRE.pptx
 
Bossa N’ Roll Records by Ismael Vazquez.
Bossa N’ Roll Records by Ismael Vazquez.Bossa N’ Roll Records by Ismael Vazquez.
Bossa N’ Roll Records by Ismael Vazquez.
 
Jemison, MacLaughlin, and Majumder "Broadening Pathways for Editors and Authors"
Jemison, MacLaughlin, and Majumder "Broadening Pathways for Editors and Authors"Jemison, MacLaughlin, and Majumder "Broadening Pathways for Editors and Authors"
Jemison, MacLaughlin, and Majumder "Broadening Pathways for Editors and Authors"
 
Leveraging Generative AI to Drive Nonprofit Innovation
Leveraging Generative AI to Drive Nonprofit InnovationLeveraging Generative AI to Drive Nonprofit Innovation
Leveraging Generative AI to Drive Nonprofit Innovation
 
Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...
Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...
Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...
 
NEWSPAPERS - QUESTION 1 - REVISION POWERPOINT.pptx
NEWSPAPERS - QUESTION 1 - REVISION POWERPOINT.pptxNEWSPAPERS - QUESTION 1 - REVISION POWERPOINT.pptx
NEWSPAPERS - QUESTION 1 - REVISION POWERPOINT.pptx
 

Indian Contract Act-Legal Aspects of Business

  • 1. ASSIGNMENT ON LEGAL ASPECTS OF BUSINESS OF “INDIAN CONTRACT ACT 1872” SUBMITTED TO MR. MOHAMMAD IMRAN SHAIKH SUBMITTED BY SR NO. ENROLLMENT NO NAME 1 2 3 128050592001 128050592004 128050592013 AMBER THAKUR PRIYANKA BACHKANIWALA RAKSHIT BHAVSAR 4 5 6 128050592024 128050592051 128050592060 KOSHA DOSHI SONAM LALWANI VINAY MODI
  • 4.  OFFER - According to Sec.2(a), when a person made a proposal, when he signifies to another his willingness to do or to abstain from doing something. AGREEMENT = OFFER + ACCEPTANCE CONSENSUS - AD – IDEMAccording to Sec.13, meeting of minds or identity of minds or receiving the same thing in same sense at same time
  • 5. Agreement Legal Obligation Contract “All agreements are contracts but all contracts are not agreements.” CONTRACT = AGREEMENT + ENFORCIBILITY BEFORE LAW
  • 6. ESSENTIAL ELEMENTS OF A VALID CONTRACT (Sec.10) 1.Offer & acceptance. 2.Intention to create legal relationship. 3.Consensus - ad - idem. 4.Consideration. 5.Capacity to contract. 6.Free consent. 7.Legality of object. 8.Possibility of performance. 9.Writing & registration.
  • 7. TYPES OF CONTRACTS VALID CONTRACTS  Absolute contract  Contingent contract(Sec. 31-36)  Express contract  Implied/Quasi contract(Sec.68- 72)
  • 8. Valid contract - If all the condition are fulfilled it is called as a valid contract. Contingent contract - In a contract to do or not to do something, if an event is collateral, does or doesn't happen. Express contract - When contracts are either in writing or in oral. Implied contract - When contracts are neither in writing nor in oral. Absolute contract - A contract which is not dependent on fulfillment of any condition.
  • 9. INVALID CONTRACTS Void contract Is void(Void - ab - initio) Becomes void Voidable contract Illegal contract Unenforceable contract
  • 10. Invalid contract - In a contact if any one condition is not fulfilled. Is void (Void-ab-initio) - An agreement which is not valid from the beginning. Becomes void - An agreement which is valid in the beginning but due to some supervening impossibility the contract becomes void. Voidable contract - A contract which is valid unless until avoided by either the party.
  • 11. Illegal contract - An agreement forbidden by law. Unenforceable contract - It is valid but due to some technical defect the contract becomes void. In case defects are removed the contract is enforceable.(lack of registration, lack of signature etc.,)
  • 12. OTHER TYPES OF CONTRACTS •Executed contract •Executory contract •Unilateral contract •Bilateral contract
  • 13. Executed contract - In a contract where both the parties have performed their obligation, there is remaining nothing to perform. Executory contract - In a contract where both the parties are yet to perform their obligation. Unilateral contract - In a contract one party has performed his obligation and other person is yet to perform his obligation. Bilateral contract - In a contract where both the parties have performed their obligation. Bilateral & Executory are same and inter changeable.
  • 14. OFFER
  • 15. According to Sec.2(a), when a person made a proposal, when he signifies to another his willingness to do or to abstain from doing something.
  • 16. TYPES OF OFFER        Express offer Implied offer Specific offer General offer Cross offer Counter offer Standing offer
  • 17. Express offer - When offer is given to another person either in writing or in oral. Implied offer - When offer is given to another person neither in writing nor in oral. Specific offer - When offer is given to a specific person. General offer - When offer is given to entire world at a large.(Carlill Vs. Carbolic smoke ball Co.,)
  • 18. Cross offer - When both the persons are making identical offers to each other in ignorance of other‟s offer. Counter offer - When both the persons are making offers to each other which a re not identical in ignorance of other‟s offer. Standing offer -An offer which remains continuously enforceable for a certain period of time.
  • 19. LEGAL RULES FOR OFFER  Offer must be given with an intention to create a legal relationship.(Balfour Vs. Balfour)  Offer must be definite.(Taylor Vs. Portington)  There is a clear cut difference between offer, invitation to offer, invitation to sale. (Harris Vs. Nickerson)
  • 20. Offer must be communicated. (Fitch Vs. Snedkar) Mere statement of price of price is not an offer.(Harvey Vs. Facey)
  • 22. According to sec.2(b), when a person made a proposal to another to whom proposal is made, if proposal is assented there to, it is called acceptance.
  • 23. LEGAL RULES FOR ACCEPTANCE • Acceptance must be given as per the mode prescribed by the offerer. • Acceptance must be given before the lapse of time or within reasonable time. • Acceptance must be unconditional. • Acceptance may be given by any person in case of general offer.
  • 24. • Acceptance may be given by any specific person in case of specific offer. • Acceptance must be communicated. (Bordgon Vs. Metropolitan Rly. Co.) • Mental acceptance is no acceptance or acceptance must not be derived from silence. • Acceptance must not be precedent to offer.
  • 26. According to sec 2(d) consideration is defined as “when at the desire of the promisor , or 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 an act or abstinence or promise is called a consideration for the promise .
  • 27. When a party to an agreement promises to do something he must get “something” in return .This “something” is defined as consideration. LEGAL RULES AS TO CONSIDERATION 1)It must move at the desire of the promisor. [Durga Prasad v. Baldeo ] 2)It may move by the promisee . [Chinnaya v. Ramayya ] 3)It must be past ,present or future . 4)It need not be adequate . 5)It must be real . 6)It must not be illegal , immoral or opposed to public policy .
  • 28. STRANGER TO CONTRACT It is general rule of contract that only parties to contract can sue & be sued on that contract . This rule is known as ‘Doctrine of privity’ i.e. relationship between the parties to contract . Exceptions 1)A trust or a charge . 2)Marriage settlement , partition or other family arrangements . 3)Estoppel 4)Assignment of contract . 5)Contract with agent . 6)Covenants running with land .
  • 29. Contract without consideration is void – Exceptions         Love & affection . [Venkataswamy v. Rangaswamy] Compensation for voluntary service Promise to pay a time – barred debt . Completed gift . Agency sec (185) . Charity . Contract of bailment sec(148 ) .
  • 30. No consideration no contract  [Abdul Aziz v. Masum Ali]  [Kedarnath v. Gauri Mohamed ]
  • 32. Capacity to contract Following are the condition for a person to enter into contract  He must be major  He must be sound mind  He must not be disqualified by any other law.
  • 33. Disqualified persons to enter into a contract a) Minor b) unsound person c)others i.e. alien enemy, insolvent, convict, company/corporation against MOA / AOA .
  • 34. Minor According to Indian majority act sec(3) minor is defined as any person under the age of 18 years . In the following cases a person is said to be minor if he does not complete the age of 21 years a) any person under the guardian & wards act ,1890 b)any person which comes under superintendence of law/legal representative
  • 35. Rules governing minors agreement  Rule 1 : judges are counselors , jury is the servant , law is the guardian .  Rule 2:in case minor entered into a contract which is unlawful , illegal , immoral he is also prosecutable & punishable under the relevant law.
  • 36. Legal rules  An agreement with minor is void ab initio  Minor can be promisee  Minor cannot ratify his agreement on attaining the age of majority
  • 37.         Minor as a shareholder , Minor as a partner, Minor as a agent , Minor as a member of trade union , No estoppel against minor , He can plead his minority , He can enter into contract for his necessary On behalf of minor his parents , guardian or any other person can enter into void contract to acquire movable property.
  • 38. Unsound person  According to sec(12) a person generally sound , occasionally unsound can enter into a contract when he of sound mind  A person generally unsound occasionally sound can enter onto contract when he is sound mind .
  • 39. Persons of unsound mind 1)Lunatic , 2)Idiots , 3)Drunken or intoxicated persons .
  • 41.  According to Sec 10 of the Indian Contract Act one of the essentials of a valid contract is “Free Consent”  Sec 13 defines “consent” as “Two or more persons are said to consent when they agree upon the same thing in the same sense". According to Sec 14, consent is said to be free when it is not caused by: 1.Coercion 2.Undue influence 3.Fraud 4.Misrepresentation 5.Mistake
  • 42. COERCION According to Sec 15 coercion means “Committing or threaten to commit any act forbidden by Indian Penal Code 1860 or unlawful detaining or threatening to detaining any other persons property with a view to enter into an agreement. It is immaterial whether the IPC is or is not in force where the coercion is employed” The threat amounting to coercion need not necessarily be from a party to contract , it may also proceed from a stranger to the contract.
  • 43. Consent is said to be caused by coercion when obtained by: 1.The committing or threatening to commit any act forbidden by the Indian Penal Code 2.The unlawful detaining or threatening to detain any property It is not important whether the IPC is or not in force where the coercion is taking place. For example A and B , both Indians are on a voyage trip to America when the ship is on the Atlantic ocean; B threatens A that if he doesn‟t transfer his property to B‟s name then he will push him into the water. Now though the IPC is not in force on the Atlantic ocean it is still considered a coercion.
  • 44. Contingent Contract(sec 31) A contingent contract is a contract to do or not to do something, if some event, collateral to such contract, does or does not happen. It is also called a conditional contract.
  • 45. Example:  A contracts to pay B Rs.10,000 if B‟s house is burnt. This is a contingent contract.
  • 47. DISCHARGE OF A CONTRACT DISCHARGE BY PERFORMANCE DISCHARGE BY AGREEMENT OR CONSENT DISCHARGE BY IMPOSSIBILITY OF PERFORMANCE DISCHARGE BY LAPSE OF TIME DISCHARGE BY OPERATION OF LAW DISHARGE BY BREACH OF CONTRACT
  • 48. DISCHARGE BY PERFORMANCE  ACTUAL PERFORMANCE When both parties perform their promises & there is nothing remaining to perform  ATTEMPTED PERFORMANCE When the promisor offers to perform his obligation ,but promisee refuses to accept the performance. It is also known as tender
  • 49. DISCHARGE BY AGREEMENT OR CONSENT  NOVATION (Sec 62): New contract substituted for old       contract with the same or different parties RESCISSION (Sec 62) : When some or all terms of a contract are cancelled ALTERATION (Sec 62):When one or more terms of a contract is/are altered by the mutual consent of the parties to the contract REMISSION (Sec 63) :Acceptance of a lesser fulfillment of the promise made. WAIVER :Mutual abandonment of the right by the parties to contract MERGER :When an inferior right accruing to a party to contract merges into a superior right accruing to the same party
  • 50. DISCHARGE BY IMPOSSIBILITY OF PERFORMANCE     KNOWN TO PARTIES UNKNOWN TO PARTIES SUBSEQUENT IMPOSSIBILITY SUPERVENNING IMPOSSIBILITY (Sec 56) Destruction of subject matter Non-existence of state of things Death or incapacity of personal services Change of law Outbreak of war
  • 51. DISCHARGE BY LAPSE OF TIME  THE LIMITATION ACT 1963, CLEARLY STATES THAT A CONTRACT SHOULD BE PERFORMED WITHIN A SPECIFIED TIME CALLED PERIOD OF LIMITATION  IF IT IS NOT PERFORMED AND IF THE PROMISEE TAKES NO ACTION WITHIN THE LIMITATION TIME, THEN HE IS DEPRIVED OF HIS REMEDY AT LAW
  • 52. DISCHARGE BY OPERATION OF LAW DEATH MERGER INSOLVENCY UNAUTHORISED ALTERATION OF THE TERMS OF A WRITTEN AGREEMENT RIGHTS & LIABILITIES VESTING IN THE SAME PERSON
  • 53. DISCHARGE BY BREACH OF CONTRACT ACTUAL BREACH :  At the time of performance  During the performance ANTICIPATORY BREACH  By the act of promisor  (implied repudiation) By renunciation of obligation (express repudiation)
  • 55. Remedies for breach of contract A remedy is the means given by law for the enforcement of a right. When there is a breach of contract by one party, following remedies are available to the injured party: 1. Rescission 2. Suit for Damages 3. Suit upon Quantum Meruit 4. Specific Performance of Contract 5. Injunction
  • 56. M.C. Chacko v. State Bank of Travancore 1970 AIR 500 [Section 25(1) of Indian Contract Act, Privity Of Contract, Exceptions, Section 40]
  • 57. FACTS:  H bank had an overdraft account with State Bank. MC Chacko was the manager of H bank and his father K had guaranteed the repayment of debt. K gifted his properties to members of his family. The gift deed provided that liability if any under the said guarantee should be met either by MC personally or through property gifted to him under the said deed. State Bank sued all the heirs under the deed along with MC; albeit limitation period to sue on letter of guarantee had already passed.
  • 58. ISSUES: 1) Whether a „charge‟ was created in favor of State Bank under the said deed to satisfy the debt under the letter of guarantee? 2) Whether the charge, assuming that a charge exists, is enforceable by bank when it is not a party to the deed?
  • 59. HELD: A ‘charge’ may be created on immovable property when either through express words or implied from deed, it is clear that party intended to make a specified property or fund, belonging to him, liable for debt due by him. In present case, no such charge was created in favour of State Bank—the deed merely set out an internal arrangement between the donor and members of family which conferred a right of indemnity upon them against M.C. Chacko and his inherited property—however, no intention to convert a personal debt into a secured debt in favour of the bank could not be inferred.
  • 60. MEANINGS  COERCION -A defense asserted in a criminal prosecution that a person who committed a crime did not do so of his or her own free will, but only because the individual was compelled by another through the use of physical force or threat of immediate serious bodily injury or death.  ALBEIT - Even though; although; notwithstanding  ESTOPPEL - A legal principle that bars a party from denying or alleging a certain fact owing to that party's previous conduct, allegation, or denial.  COVENANT - An agreement, contract, or written promise between two individuals that frequently constitutes a pledge to do or refrain from doing something.  RESCISSION - The abrogation of a contract, effective from its inception, thereby restoring the parties to the positions they would have occupied if no contract had ever been formed.  PRIVITY - A close, direct, or successive relationship; having a mutual interest or right.