The document provides an overview of contract law in India. It defines key terms like agreement, contract, proposal, and offer. It explains that a contract is an agreement that is enforceable by law, containing elements like offer and acceptance, lawful consideration, and lawful object. The document outlines essential features of a valid contract and distinguishes between agreements and contracts. It also describes different types of offers and proposals under Indian contract law.
The document discusses key concepts related to offer and acceptance in contract law. It defines what constitutes a valid offer, including requirements like intention to create a legal relationship and communication. It also defines acceptance and outlines essentials requirements. It discusses related topics like consideration, invitation to offer vs offer, lapse and revocation of offers, and when consideration is not necessary. Cross offers and standing offers are provided as examples. Communication of offer, acceptance and revocation are also covered.
Acceptance means giving consent to the offer and signifies the offeree's willingness to be bound by the offer terms. Acceptance can be express, through words spoken or written, or implied, inferred from conduct. For a valid acceptance, it must be absolute and unqualified without any conditions, in the prescribed manner, communicated to the offeror by the offeree before any lapse or withdrawal of the offer. The acceptance must meet all these essential elements to create a legally binding contract.
Beach's agreement to purchase the stereo system is voidable since he entered into it while still a minor. As a minor, Beach has the right to disaffirm or avoid the contract. If Beach chooses to disaffirm the contract, he can return the stereo system and recover the $100 down payment he made. McReam's would have no legal right to collect any additional payments from Beach.
The document summarizes key aspects of contract law under the Indian Contract Act of 1872. It defines a contract as an agreement that is enforceable by law. An agreement requires an offer and acceptance. For a contract to be valid, there must be free consent, lawful consideration, certainty of terms, and no legal impediments. Agreements can be void, voidable, or valid depending on enforceability. Illegal agreements differ from void agreements in that they are also punishable. Specific offers can only be accepted by the party offered to, while general offers are open to acceptance by anyone. Damages for breach of contract include ordinary damages for losses in contemplation of parties as well as nominal, punitive, and pre-fixed damages
This document provides an overview of contract law in India according to the Indian Contract Act of 1872. It discusses key concepts such as the definition of a contract, essential elements of a valid contract including offer, acceptance, consideration, capacity and consent. It also describes different types of agreements that do not constitute legally binding contracts. The summary is as follows:
1) The Indian Contract Act of 1872 governs contract law in India and defines a contract as an agreement enforceable by law involving an offer, acceptance and consideration.
2) Essential elements of a valid contract include offer and acceptance, lawful consideration, capacity and consent of parties, lawful object, and certainty of terms.
3) Not all agreements are considered
This document summarizes key concepts from Chapter 1 of the Indian Contract Act of 1872 regarding the nature of contracts.
It begins by defining terms like proposal, promise, agreement and contract. It notes that a proposal becomes a promise when accepted, and an agreement involving promises is a contract if enforceable by law.
The summary then discusses essential elements of a contract, including agreement and enforceability. It provides examples of what types of agreements constitute contracts.
It also distinguishes agreements from contracts, noting contracts necessarily create legal obligations while agreements do not unless satisfying legal requirements.
The document concludes by covering concepts like impossible contracts, uncertainty in agreements, and classifications of contracts based on creation, execution and enforceability.
The document discusses contract law in Pakistan as outlined in the Contract Act of 1872. It defines a contract as an agreement that is enforceable by law. The essential elements of a valid contract include: offer and acceptance, lawful consideration, competent parties, free consent, a lawful objective, and intention to create legal obligations. The document also discusses different types of contracts based on their validity, formation, performance, authority, and more. It provides details on what constitutes a valid, void, voidable, illegal, and unenforceable contract.
"Offer & Acceptance" (Chapter 4) - Business LawSandeep Sharma
This document discusses the concepts of offer and acceptance in contract law. It defines an offer as an expression of willingness by one party to enter an agreement with another party. It lists the basic characteristics of a proposal or offer, including that it must be communicated to the other party, be definite, include clear terms and conditions, and not obligate the other party to reply. The document also defines acceptance as signifying assent or approval to the terms of an offer and notes the essentials of a valid acceptance, such as being absolute, unconditional, and communicated within a reasonable time period before the offer lapses.
The document discusses key concepts related to offer and acceptance in contract law. It defines what constitutes a valid offer, including requirements like intention to create a legal relationship and communication. It also defines acceptance and outlines essentials requirements. It discusses related topics like consideration, invitation to offer vs offer, lapse and revocation of offers, and when consideration is not necessary. Cross offers and standing offers are provided as examples. Communication of offer, acceptance and revocation are also covered.
Acceptance means giving consent to the offer and signifies the offeree's willingness to be bound by the offer terms. Acceptance can be express, through words spoken or written, or implied, inferred from conduct. For a valid acceptance, it must be absolute and unqualified without any conditions, in the prescribed manner, communicated to the offeror by the offeree before any lapse or withdrawal of the offer. The acceptance must meet all these essential elements to create a legally binding contract.
Beach's agreement to purchase the stereo system is voidable since he entered into it while still a minor. As a minor, Beach has the right to disaffirm or avoid the contract. If Beach chooses to disaffirm the contract, he can return the stereo system and recover the $100 down payment he made. McReam's would have no legal right to collect any additional payments from Beach.
The document summarizes key aspects of contract law under the Indian Contract Act of 1872. It defines a contract as an agreement that is enforceable by law. An agreement requires an offer and acceptance. For a contract to be valid, there must be free consent, lawful consideration, certainty of terms, and no legal impediments. Agreements can be void, voidable, or valid depending on enforceability. Illegal agreements differ from void agreements in that they are also punishable. Specific offers can only be accepted by the party offered to, while general offers are open to acceptance by anyone. Damages for breach of contract include ordinary damages for losses in contemplation of parties as well as nominal, punitive, and pre-fixed damages
This document provides an overview of contract law in India according to the Indian Contract Act of 1872. It discusses key concepts such as the definition of a contract, essential elements of a valid contract including offer, acceptance, consideration, capacity and consent. It also describes different types of agreements that do not constitute legally binding contracts. The summary is as follows:
1) The Indian Contract Act of 1872 governs contract law in India and defines a contract as an agreement enforceable by law involving an offer, acceptance and consideration.
2) Essential elements of a valid contract include offer and acceptance, lawful consideration, capacity and consent of parties, lawful object, and certainty of terms.
3) Not all agreements are considered
This document summarizes key concepts from Chapter 1 of the Indian Contract Act of 1872 regarding the nature of contracts.
It begins by defining terms like proposal, promise, agreement and contract. It notes that a proposal becomes a promise when accepted, and an agreement involving promises is a contract if enforceable by law.
The summary then discusses essential elements of a contract, including agreement and enforceability. It provides examples of what types of agreements constitute contracts.
It also distinguishes agreements from contracts, noting contracts necessarily create legal obligations while agreements do not unless satisfying legal requirements.
The document concludes by covering concepts like impossible contracts, uncertainty in agreements, and classifications of contracts based on creation, execution and enforceability.
The document discusses contract law in Pakistan as outlined in the Contract Act of 1872. It defines a contract as an agreement that is enforceable by law. The essential elements of a valid contract include: offer and acceptance, lawful consideration, competent parties, free consent, a lawful objective, and intention to create legal obligations. The document also discusses different types of contracts based on their validity, formation, performance, authority, and more. It provides details on what constitutes a valid, void, voidable, illegal, and unenforceable contract.
"Offer & Acceptance" (Chapter 4) - Business LawSandeep Sharma
This document discusses the concepts of offer and acceptance in contract law. It defines an offer as an expression of willingness by one party to enter an agreement with another party. It lists the basic characteristics of a proposal or offer, including that it must be communicated to the other party, be definite, include clear terms and conditions, and not obligate the other party to reply. The document also defines acceptance as signifying assent or approval to the terms of an offer and notes the essentials of a valid acceptance, such as being absolute, unconditional, and communicated within a reasonable time period before the offer lapses.
This document provides an overview of key concepts from the Indian Contract Act 1872. It begins by listing the names of 6 students who submitted an assignment on legal aspects of business and the Indian Contract Act.
The document then covers various topics in depth, providing definitions and explanations of concepts such as offer, acceptance, consideration, capacity to contract, free consent, and more. It defines different types of contracts such as valid and invalid contracts. It also explains concepts such as coercion and undue influence which can invalidate a contract if consent is not free.
In less than 3 sentences, this document provides an in-depth review of important legal concepts from the Indian Contract Act 1872, as submitted by 6 students in an assignment on this
The parties must understand each other and intend to reach an agreement for a contract to be formed. A judge will objectively assess if there was a meeting of the minds based on the parties' conduct. An invitation to bargain or price quote is generally not an offer, and an advertisement is also not usually an offer. For an offer to be valid, the terms must be definite. The UCC establishes implied terms for open contracts regarding issues like price, delivery, and warranties. Offers can be terminated by revocation, rejection, expiration or operation of law such as death. For acceptance, the offeree must generally promise in a bilateral contract or perform in a unilateral contract. Additional terms in a acceptance under the UCC
The document summarizes key aspects of the Indian Contract Act of 1872. It begins by outlining the main structure of the act, which contains general rules pertaining to contracts and special types of contracts. It then discusses the distinction between an agreement and a contract, noting that every contract is an agreement but every agreement is not necessarily a contract. Several other important elements and concepts are defined, such as essential elements of a valid contract and classification of different types of contracts. Key terms like offer, acceptance, consideration and capacity are also explained in detail.
The understanding of a subject is much better when you understand the legal concepts surrounding it. As no answer is completed without the definitions and the concepts of law around the subject, the understanding of the whole subject depends of the understanding of these legal concepts.
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 provides an overview of key concepts from the Contract Act of 1872 in Pakistan. It discusses the applicability and scope of the act, as well as provides definitions for important legal terms related to contracts. These include offer, acceptance, consideration, agreement and the essential elements required for a valid contract. Examples of important court cases are also summarized, such as Carlill v. Carbolic Smoke Ball Co. to illustrate the definition of an offer to the public. The different types of contracts in terms of their form are also briefly mentioned.
The document discusses the Indian Contract Act of 1872 and provides context around contract law in India. It defines a contract as an agreement that is enforceable by law. It outlines the essential elements for a valid contract, including offer and acceptance, lawful consideration, capacity and consent of parties. It also classifies contracts based on validity, subject matter, performance, and whether they are express, implied, quasi or unilateral.
This document provides an overview of contract law in India based on the Indian Contract Act of 1872. It defines what constitutes a valid contract according to law, including elements such as offer and acceptance, consideration, consent of the parties, lawful purpose and consideration, and certain formalities for specific contract types. Key aspects covered include defining an offer and the requirements for a valid offer, defining acceptance and the requirements for valid acceptance, when an agreement is formed, and exceptions where an agreement would not constitute a legally binding contract. The document uses examples and case law references to illustrate various contract law principles.
The document discusses key concepts related to contracts under the Indian Contract Act of 1872 such as:
1. A contract is defined as an agreement that is enforceable by law, which involves an offer, acceptance of that offer, intention to create a legal relationship, consideration, capacity to contract, and free consent.
2. Essential elements of a valid contract include offer and acceptance, intention to create a legal relationship, consensus ad idem, consideration, capacity to contract, free consent, legality of object, and possibility of performance.
3. For a contract to be valid, consent between the parties must be free and not caused by coercion, undue influence, or fraud/misrepresentation.
This presentation is all about offer & essential elements of offer which make an offer valid.
Here I make a little mistake and I realize it after uploading it..
Here Impress offer would be Implide offer.
This document discusses the performance of contracts under Indian law. It defines performance as the fulfillment of obligations by the parties, which discharges the contract. There are two types of performance: actual performance and attempted performance (tender/offer of performance). It outlines the rules for tender of performance, performance by joint promisors, appropriation of payments, who can perform and demand performance, and time and place of performance.
1. The document discusses the concepts of offer and acceptance in contract law.
2. It provides definitions and examples of express and implied offers, as well as general and specific offers.
3. The key requirements for a valid acceptance are discussed, including that it must be absolute, communicated to the offeror, and according to the prescribed mode. Silence generally does not imply acceptance.
This document provides an overview of key concepts related to contracts under the Indian Contract Act of 1872. It defines important terms like proposal, acceptance, agreement, void agreement, contract, and voidable contract. It explains that not every agreement constitutes a contract and outlines the essential elements of a valid contract including offer, acceptance, consideration, lawful object, competent parties, free consent, and intention to create legal relations. It also summarizes important contract law principles such as communication and revocation of offers/acceptances, consideration, and the difference between an offer and invitation to offer.
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 various aspects of performing contracts including:
1. The requisites of a valid tender including being unconditional, for the whole quantity, by an authorized person, at the proper time and place, and to the proper person.
2. Circumstances where contracts do not need to be performed such as when performance becomes impossible or the parties agree to modify or rescind the contract.
3. Who is responsible for contract performance - the promisor, their agent, legal representatives, or a third party. Joint promisors' obligations can devolve through default or release.
4. Time and place of performance depends on what is specified in the contract or prescribed by the promisee
The document discusses the essentials of a contract under Indian law. It defines a contract and explains that a valid contract requires agreement and consideration between two parties. It classifies contracts into different types such as express and implied, executed and executory, unilateral and bilateral, and valid, void, voidable and illegal based on how they are formed and executed. Key points covered include definitions of contract, elements of a valid contract, and classifications of contracts according to formation, execution and enforceability.
This document discusses breach of contract and the various ways a contract can be discharged or terminated, including performance, mutual agreement, impossibility of performance, breach of contract, operation of law, and lapse of time. It explains that breach of contract occurs when a party fails to perform their contractual obligations. There are two types of breach: anticipatory breach, which happens when a party demonstrates their intention to break the contract before performance is due, and actual breach, which occurs when a party fails to perform during or at the time performance is required. When a breach occurs, the aggrieved party has several potential remedies, including rescinding the contract, seeking specific performance, obtaining an injunction, receiving damages in compensation, or
Performance of contract time and place of performacerichardkthomas
The document discusses rules regarding time and place of performance under the Indian Contract Act of 1872. It outlines 5 key sections:
1. When no time is specified, performance must be within a reasonable time.
2. If a specific day is set, performance can be done within business hours on that day without a request.
3. If a day is set and performance requires a request, the promisee must apply during business hours.
4. If no place is set and no request is needed, the promisor must contact the promisee to set a reasonable place.
5. Performance can be done in any manner prescribed by the promisee.
It also discusses circumstances when time
The document summarizes key aspects of contract law in India as contained in the Indian Contract Act of 1872. It discusses the following:
1) The law of contract in India is primarily contained in the Indian Contract Act of 1872, which deals with general contract principles and some special contracts.
2) A contract creates a jus in personam (right against a person) as opposed to a jus in rem (right against a thing). For a contract to be valid, there must be an agreement between two parties, consideration, lawful object, capacity and free consent of parties.
3) Essential elements of a valid contract include offer, acceptance, intention to create a legal relationship, consideration, capacity of parties and
The document discusses the definition and essential elements of a valid contract. It defines a contract as an agreement enforceable by law involving an offer, acceptance, consideration, and lawful object. It outlines the key elements that must be present for an agreement to constitute a legally binding contract, including offer and acceptance, intention to create legal relations, lawful consideration, capacity of parties, free consent, lawful object, certainty, possibility of performance, and avoidance of certain prohibited agreements. It also distinguishes between different types of contracts and agreements.
This document provides an overview of key concepts from the Indian Contract Act 1872. It begins by listing the names of 6 students who submitted an assignment on legal aspects of business and the Indian Contract Act.
The document then covers various topics in depth, providing definitions and explanations of concepts such as offer, acceptance, consideration, capacity to contract, free consent, and more. It defines different types of contracts such as valid and invalid contracts. It also explains concepts such as coercion and undue influence which can invalidate a contract if consent is not free.
In less than 3 sentences, this document provides an in-depth review of important legal concepts from the Indian Contract Act 1872, as submitted by 6 students in an assignment on this
The parties must understand each other and intend to reach an agreement for a contract to be formed. A judge will objectively assess if there was a meeting of the minds based on the parties' conduct. An invitation to bargain or price quote is generally not an offer, and an advertisement is also not usually an offer. For an offer to be valid, the terms must be definite. The UCC establishes implied terms for open contracts regarding issues like price, delivery, and warranties. Offers can be terminated by revocation, rejection, expiration or operation of law such as death. For acceptance, the offeree must generally promise in a bilateral contract or perform in a unilateral contract. Additional terms in a acceptance under the UCC
The document summarizes key aspects of the Indian Contract Act of 1872. It begins by outlining the main structure of the act, which contains general rules pertaining to contracts and special types of contracts. It then discusses the distinction between an agreement and a contract, noting that every contract is an agreement but every agreement is not necessarily a contract. Several other important elements and concepts are defined, such as essential elements of a valid contract and classification of different types of contracts. Key terms like offer, acceptance, consideration and capacity are also explained in detail.
The understanding of a subject is much better when you understand the legal concepts surrounding it. As no answer is completed without the definitions and the concepts of law around the subject, the understanding of the whole subject depends of the understanding of these legal concepts.
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 provides an overview of key concepts from the Contract Act of 1872 in Pakistan. It discusses the applicability and scope of the act, as well as provides definitions for important legal terms related to contracts. These include offer, acceptance, consideration, agreement and the essential elements required for a valid contract. Examples of important court cases are also summarized, such as Carlill v. Carbolic Smoke Ball Co. to illustrate the definition of an offer to the public. The different types of contracts in terms of their form are also briefly mentioned.
The document discusses the Indian Contract Act of 1872 and provides context around contract law in India. It defines a contract as an agreement that is enforceable by law. It outlines the essential elements for a valid contract, including offer and acceptance, lawful consideration, capacity and consent of parties. It also classifies contracts based on validity, subject matter, performance, and whether they are express, implied, quasi or unilateral.
This document provides an overview of contract law in India based on the Indian Contract Act of 1872. It defines what constitutes a valid contract according to law, including elements such as offer and acceptance, consideration, consent of the parties, lawful purpose and consideration, and certain formalities for specific contract types. Key aspects covered include defining an offer and the requirements for a valid offer, defining acceptance and the requirements for valid acceptance, when an agreement is formed, and exceptions where an agreement would not constitute a legally binding contract. The document uses examples and case law references to illustrate various contract law principles.
The document discusses key concepts related to contracts under the Indian Contract Act of 1872 such as:
1. A contract is defined as an agreement that is enforceable by law, which involves an offer, acceptance of that offer, intention to create a legal relationship, consideration, capacity to contract, and free consent.
2. Essential elements of a valid contract include offer and acceptance, intention to create a legal relationship, consensus ad idem, consideration, capacity to contract, free consent, legality of object, and possibility of performance.
3. For a contract to be valid, consent between the parties must be free and not caused by coercion, undue influence, or fraud/misrepresentation.
This presentation is all about offer & essential elements of offer which make an offer valid.
Here I make a little mistake and I realize it after uploading it..
Here Impress offer would be Implide offer.
This document discusses the performance of contracts under Indian law. It defines performance as the fulfillment of obligations by the parties, which discharges the contract. There are two types of performance: actual performance and attempted performance (tender/offer of performance). It outlines the rules for tender of performance, performance by joint promisors, appropriation of payments, who can perform and demand performance, and time and place of performance.
1. The document discusses the concepts of offer and acceptance in contract law.
2. It provides definitions and examples of express and implied offers, as well as general and specific offers.
3. The key requirements for a valid acceptance are discussed, including that it must be absolute, communicated to the offeror, and according to the prescribed mode. Silence generally does not imply acceptance.
This document provides an overview of key concepts related to contracts under the Indian Contract Act of 1872. It defines important terms like proposal, acceptance, agreement, void agreement, contract, and voidable contract. It explains that not every agreement constitutes a contract and outlines the essential elements of a valid contract including offer, acceptance, consideration, lawful object, competent parties, free consent, and intention to create legal relations. It also summarizes important contract law principles such as communication and revocation of offers/acceptances, consideration, and the difference between an offer and invitation to offer.
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 various aspects of performing contracts including:
1. The requisites of a valid tender including being unconditional, for the whole quantity, by an authorized person, at the proper time and place, and to the proper person.
2. Circumstances where contracts do not need to be performed such as when performance becomes impossible or the parties agree to modify or rescind the contract.
3. Who is responsible for contract performance - the promisor, their agent, legal representatives, or a third party. Joint promisors' obligations can devolve through default or release.
4. Time and place of performance depends on what is specified in the contract or prescribed by the promisee
The document discusses the essentials of a contract under Indian law. It defines a contract and explains that a valid contract requires agreement and consideration between two parties. It classifies contracts into different types such as express and implied, executed and executory, unilateral and bilateral, and valid, void, voidable and illegal based on how they are formed and executed. Key points covered include definitions of contract, elements of a valid contract, and classifications of contracts according to formation, execution and enforceability.
This document discusses breach of contract and the various ways a contract can be discharged or terminated, including performance, mutual agreement, impossibility of performance, breach of contract, operation of law, and lapse of time. It explains that breach of contract occurs when a party fails to perform their contractual obligations. There are two types of breach: anticipatory breach, which happens when a party demonstrates their intention to break the contract before performance is due, and actual breach, which occurs when a party fails to perform during or at the time performance is required. When a breach occurs, the aggrieved party has several potential remedies, including rescinding the contract, seeking specific performance, obtaining an injunction, receiving damages in compensation, or
Performance of contract time and place of performacerichardkthomas
The document discusses rules regarding time and place of performance under the Indian Contract Act of 1872. It outlines 5 key sections:
1. When no time is specified, performance must be within a reasonable time.
2. If a specific day is set, performance can be done within business hours on that day without a request.
3. If a day is set and performance requires a request, the promisee must apply during business hours.
4. If no place is set and no request is needed, the promisor must contact the promisee to set a reasonable place.
5. Performance can be done in any manner prescribed by the promisee.
It also discusses circumstances when time
The document summarizes key aspects of contract law in India as contained in the Indian Contract Act of 1872. It discusses the following:
1) The law of contract in India is primarily contained in the Indian Contract Act of 1872, which deals with general contract principles and some special contracts.
2) A contract creates a jus in personam (right against a person) as opposed to a jus in rem (right against a thing). For a contract to be valid, there must be an agreement between two parties, consideration, lawful object, capacity and free consent of parties.
3) Essential elements of a valid contract include offer, acceptance, intention to create a legal relationship, consideration, capacity of parties and
The document discusses the definition and essential elements of a valid contract. It defines a contract as an agreement enforceable by law involving an offer, acceptance, consideration, and lawful object. It outlines the key elements that must be present for an agreement to constitute a legally binding contract, including offer and acceptance, intention to create legal relations, lawful consideration, capacity of parties, free consent, lawful object, certainty, possibility of performance, and avoidance of certain prohibited agreements. It also distinguishes between different types of contracts and agreements.
The Indian Contract Act of 1872 is the main source of contract law in India. It defines a contract as an agreement that is enforceable by law. The Act has two parts - the first deals with general contract principles and the second addresses special types of contracts. A valid contract requires an offer and acceptance, lawful consideration, capacity and consent of parties, a lawful object, and certainty of terms. The Act also defines key elements like proposal, acceptance, and consideration and classifies contracts as valid, void, voidable, unenforceable, and illegal.
The document provides an overview of the Indian Contract Act of 1872. It defines key terms related to contracts such as agreement, proposal, offer, acceptance, consideration, consent and remedies for breach of contract. It also discusses different types of contracts and quasi-contracts. The Act determines the circumstances in which promises made by parties to a contract will legally bind them and is applicable to all states in India except Jammu and Kashmir.
The document discusses the Indian Contract Act of 1872, which governs contract law in India. Some key points:
1) The Act defines a contract as an "agreement enforceable by law" and establishes essential elements for a valid contract, including offer/proposal and acceptance, lawful consideration, capacity and consent of parties.
2) Agreements only become contracts if they meet all essential elements - not all agreements are legally enforceable contracts.
3) The Act covers general contract principles that apply to all contracts, as well as specific types of contracts like indemnity, guarantee, bailment and pledge.
The document provides an overview of Indian contract law. It defines key concepts like agreement, contract, offer, and acceptance. It explains that a contract requires an agreement plus enforceability by law. There must be consensus between the parties for a valid contract. The essential elements of a valid contract are discussed, including offer and acceptance, lawful object and consideration, capacity and consent of parties. The document also covers types of contracts and specifics around offer, acceptance, and revocation of offers.
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.
This document provides an overview of key concepts in business law in India including definitions of law, the need for business laws, sources of business law, the Indian Contract Act of 1872, essential elements of a valid contract, and classifications of contracts. It defines law, discusses the objectives of business law and contract law, and provides examples to illustrate concepts like void, voidable, and valid contracts.
After midsem-slides-1224252673846877-9 niravniravjingar
This document provides an overview of key concepts in business law in India including definitions of law, the need for business laws, sources of business law, the Indian Contract Act of 1872, essential elements of a valid contract, and classifications of contracts. It defines law, discusses the objectives of business law and contract law, and outlines essential elements for a valid contract such as offer and acceptance, lawful consideration, capacity and consent of parties. It also classifies contracts based on validity, formation, and performance.
The document defines key terms related to contracts under the Indian Contract Act such as proposal, promise, promisor, promisee, consideration, agreement, void agreement, contract, and voidable contract. It then outlines the essential elements for a valid contract including offer and acceptance, consideration, capacity of parties, consent, legality of object, writing and registration, certainty and possibility of performance. Finally, it discusses different types of contracts, agreements, quasi-contracts and key principles of offer, acceptance and consideration.
The document discusses the key aspects of a valid contract under Indian law. It defines agreement, contract, offer, acceptance, consideration and other essential elements.
Some key points:
1. An agreement is a promise or set of promises with consideration. It becomes a contract if enforceable by law as per the Indian Contract Act.
2. Essential elements of a valid contract include offer and acceptance, lawful consideration, capacity of parties, free consent, lawful object and compliance with legal formalities.
3. An offer must be definite, communicated and accepted unconditionally for a contract to be valid. Consideration need not be adequate but must be real and lawful.
4. Only parties to
The document discusses key concepts from the Indian Contract Act 1872 such as offer, acceptance, agreement, and contract. It explains that a contract requires an agreement plus legal enforceability. The essential elements of a valid contract are discussed as offer and acceptance, lawful object, lawful consideration, capacity of parties, and free consent. Remedies for breach of contract include damages, specific performance, and injunction. Previous years questions from various competitive exams covering concepts of contract law are also provided.
This document discusses the definition and essential elements of a valid contract under Indian law. It begins by defining a contract as a legally binding agreement between two or more persons, as per the Indian Contract Act. It then examines definitions of a contract from legal sources like Halsbury and Sir Salmond. The essential elements discussed are agreement, intention to create legal obligations, lawful consideration, lawful object, contractual capacity and consent of parties, and any necessary legal formalities. The differences between a contract and agreement are outlined. Overall, the document provides a high-level overview of what constitutes a valid contract in India according to legal statutes and precedents.
The Indian Contract Act 1872 is the main source of law regulating contracts in India. It determines the circumstances in which promises made between contracting parties become legally binding. The Act establishes the essential elements required for a valid contract, including offer and acceptance, lawful consideration, competent parties, free consent, lawful object, and no express voidness. It also defines different types of contracts based on their validity, formation, and performance. The Act aims to enforce the rights and duties of contracting parties under Indian law.
The document discusses the Indian Contract Act of 1872 which governs contract law in India. It defines key terms related to contracts such as agreement, proposal, acceptance, consideration, and essentials of a valid contract. It also classifies contracts based on their enforceability, mode of formation, and extent of execution. The Act aims to protect parties' reasonable expectations and provide a framework for resolving contractual disputes.
The document discusses the essential elements of a valid contract according to Indian contract law:
1. An agreement requires an offer and acceptance between two or more parties to constitute a valid contract.
2. Other essential elements are consideration, lawful object, capacity and free consent of the parties, and the agreement must not be expressly declared void.
3. A contract creates legal obligations between the contracting parties, giving rise to rights in personam rather than rights in rem against the whole world.
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Law of contract introduction
1. Law of Contract: A General
Introduction
BY
DR VIJAY SRIVASTAVA
ASSOCIATE PROFESSOR
AMITY LAW SCHOOL
AMITY UNIVERSITY GWALIOR- M.P.
1
2. SYNOPSIS
Contract- Meaning and Nature
All contracts are agreement but all agreements are not
contracts
Essential features of contract
Agreement (Section 2(e))
Essentials of an Agreement
The agreement should not expressly be declared to be
void
Difference between Agreement and contract
Proposal U/S 2(a) and its features
Kinds of offer
Difference between an offer and Invitation to offer
Lapses and revocation of an offer 2
3. Contract: Meaning and Nature
The Indian Contract Act was enacted in 1872 and came
into force on 1st September 1872. The word ‘contract’
has been derived from the Latin word ‘contructus’ which
means ‘to work on contract’. The law of contract is
based on the principle of ‘pacta sunt servanda’ which
means ‘agreements must be kept’.
Section 2(h) of the Indian Contract Act 1872 defines the
term ‘contract’ as an ‘agreement enforceable by law’. As
per section 2(e) every promise and every set of
promises forming consideration for each other is called
an agreement. A promise is an accepted proposal.
3
4. Conti….
Section 2(h) of the Indian Contract Act 1872 defines the
term ‘contract’ as an ‘agreement enforceable by law’.
In other words , A contract is a lawful agreement
Contract = Agreement + Legal enforceability
Or
Contract = Legally enforceable Agreement
here , Enforceable by law means that, if somebody is
aggrieved then he may approach the court for remedies
So Mathematically,
Agreement + Enforceable by Law = Contract
4
5. Conti…
For an agreement to become a contract it must give rise to a
legal obligation and if it is incapable of doing so, it is not a
contract. In the case of Balfour v Balfour [1919] 2 KB 571, Mr.
Balfour promised to pay his wife £30/month as she stayed in
England for medical reasons. When he failed to pay, Mrs. Balfour
sued him. Her action failed because there was no intention to
create a legally binding agreement between Mr. and Mrs. Balfour.
A contract cannot be made without proper indication about
the legal rights and obligations of the parties to the contract.
So, if this were to be a contract then the wife would have had a
right to receive payment and the husband would have had the
obligation to pay his wife.
5
6. All contracts are agreement but all
agreements are not contracts
An agreement is a contract when:
Free consent of the parties: the consent of the parties which
are free from , Coercion (Section 15), Undue Influence (Section
16), Fraud (Section 17), Misrepresentation (Section 18) and
Mistake (Section 20, 21, 22), are known as free consent .
Capacity of the parties to contract: Section 11 and 12 lay
down that the competent parties are persons who have attained
majority {Exception for this was laid down in Mohori Bibee v.
Dharmodas Ghose ILR (1903) 30 Cal 539 (Pc)}, persons who
are of sound mind and persons who are not disqualified by law.
Lawful consideration and Lawful object: Section 23 lays
down that the consideration and object is lawful unless it is
forbidden by law or it defeats provisions of any law or is
fraudulent or involves injury to person or property or is violative
of public health, morality, peace and order.
6
7. Essential features of contract
An agreement becomes a valid contract when the following
essential conditions are satisfied:
Offer and acceptance
Intention to create legal obligations
Lawful consideration
Contractual capacity
Free consent
Lawful object
Must not be expressly declared as void
Certain terms of the contract
Legal formalities
7
8. Agreement (Section 2(e))
An Agreement is a promise between two entities creating mutual
obligations by law. Section 2(e) of the Indian Contract Act, 1872
defines an agreement as ‘Every promise and every set of
promises, forming the consideration for each other, is an
agreement’.
Section 10 of the Act deals with the conditions of the enforceability
of an agreement. It provides: “All agreements are contracts if they
are they made by the free consent of parties competent to contract,
for a lawful consideration and with a lawful object, and are not
hereby expressly declared to be void”.
“Nothing herein contained shall affect any law in force in India, and
not hereby expressly repealed, by which any contract is required to
be made in writing or in the presence of witnesses, or any law
relating to the registration of documents”.
8
9. Essentials of an Agreement-
(To form an agreement, the following ingredients are required)
Parties: There need to be two or more parties to form an agreement.
Offer/ Proposal: When a person signifies to another his willingness of
doing or omitting to do something with a view to obtain other’s
assent. [Section 2(a)]
Acceptance: When the person to whom the proposal is made signifies his
assent for the same thing in the same sense as proposed by the
offeror. [Section 2(b)]
Promise: When a proposal is accepted, it becomes a promise. [Section
2(b)]
Consideration: It is the price for the promise. It is the return one gets for
his act or omission. [Section 2(d)]
An agreement is, therefore, a promise or set of promises forming
consideration for all the parties. [Section 2(e)]
Agreement = Promise or set of promises (offer + acceptance) +
Consideration (for all the parties)
9
10. The agreement should not expressly be
declared to be void
There are certain kinds of contracts which are expressly declared by
The Indian Contract Act, 1872 to be null and void. The following are
some of the agreements which are not enforceable in the eyes of
law:
Agreements without consideration except it is written
and registered or is a promise to compensate for
something done or is a promise to pay a debt barred by
limitation law.
Agreements in restraint of marriage
Agreements in restraint of trade
Agreements in restraint of legal proceedings
Agreements void for uncertainty
Agreements by way of wager
Agreements contingent on an impossible event
Agreements to do impossible act
10
11. Difference between Agreement and
contract
BASIS AGREEMENT CONTRACT
Meaning An agreement is made when
a proposal by one party is
accepted by another for
lawful consideration
A contract is made when an
agreement becomes enforceable
by law.
Elements Offer and Acceptance Agreement and Enforceability
under law
Defined in Section 2(e) Section 2(h)
In writing Not necessarily Usually written and registered
Legal
obligation
There is no legal obligation as
long as it is a mere
agreement.
Once the agreement becomes a
contract, there is a legal obligation
by parties involved.
Scope Wide Narrow
11
12. Proposal U/S 2(a)
Section 2(a) of the Indian Contract Act 1872 defines
proposal as ‘When one person signifies to another his
willingness to do or to abstain from doing anything, with
a view to obtaining the assent of that other to such act
or abstinence, he is said to make a proposal’.
As per section 2(a) an offer or proposal has the
following essential ingredients:
One person signifies to another
His willingness to do or to abstain from anything
With a view to obtain an assent thereto
The person who makes the proposal or offer is called
the promisor or offeror and the person on whom the
proposal is made is called the promisee or offeree
12
13. Essential conditions for a valid offer:
Intention to create legal obligation
Express or implied
Certainty of terms
Silence as acceptance
Expression of willingness to do or to abstain from anything
The offeror must express his willingness to do or abstain from
doing an act. Only willingness is not adequate. Or just an urge
to do something or not to do anything will not be an offer.
An offer can either be positive or negative. It can be a
promise to do some act, and can also be a promise to abstain
from doing any act/service. Both are valid offers.
13
14. Features of an offer
There must be two parties
There have to be at least two parties: a person making the
proposal and the other person agreeing to it. All the persons are
included i.e, Legal persons as well as artificial persons.
Every proposal must be communicated
Communication of the proposal is mandatory. An offer is valid if
it is conveyed to the offeree only . The communication can either
be expressed or implied. It can be communicated by terms such
as word of mouth, messenger, telegram, etc. Section 4 of the
Indian Contract Act says that the communication of a proposal is
complete when it comes to the awareness of the person to
whom it is made.
Eg. A’ proposes to sell a car to ‘B’ at a certain price. Once ‘B’
receives the letter, the proposal communication is complete. 14
15. Conti..
It must create legal relations
An offer must be such that when accepted it will result in a valid
contract. A mere social invitation cannot be regarded as an offer,
because if such an invitation is accepted it will not give rise to
any legal relationship. Eg. ‘A’ invited ‘B’ to dinner and ‘B’
accepted the invitation. It is a mere social invitation. And ‘A’ will
not be liable if he fails to provide dinner to B.
It must be certain and definite
The terms of the offer must be certain and clear in order to
create a valid contract, it must not be ambiguous.
It may be specific or general
The specific offer is an offer that is accepted by any specific
or particular person or by any group to whom it is made.
Whereas, The general offers are accepted by any person.
15
16. Classification of an offer
Express offer and implied offer (Section 9)
Section 9 of The ICA defines both of them as: In so far as
the proposal or acceptance of any promise is made in
words, the promise is said to be expressed. In so far as
such a proposal or acceptance is made otherwise than in
words, the promise is said to be implied.
Therefore, any offer that is made with words, it may be
regarded as express. Any promise that is made
otherwise than in words is implied. A bid at an auction is
an example of an Implied offer.
16
17. General Offer
A General Offer is an offer that is made to the world at
large.
The genesis of a General Offer came about from the Landmark case
of Carlill v. Carbolic Smoke Ball Co.
A company by the name Carbolic Smoke Ball offered through an
Advertisement to pay 100 Pounds to anyone who would contract
increasing epidemic Influenza, colds or any disease caused by cold
after taking its Medicine according to the prescribed instructions. It
was also added that 1000 Pounds have been deposited in Alliance
bank showing our sincerity in the matter. One customer Mrs Carlill
used the medicine and still contracted Influenza and hence sued the
company for the reward. The Defendants gave the argument that
the offer was not made with an intention to enter into a legally
binding agreement, rather was only to Puff the sales of the
company. 17
18. Conti…
Moreover, they also contended that an offer needs to be
made to a specific person, and here the offer was not to any
specific person and hence they are not obliged to the
Plaintiff.
Setting aside the arguments of the Defendant, the bench
stated that in cases of such offers i.e- general offers, there is
no need for communication of acceptance, anyone who
performs the conditions of the contract is said to have
communicated his/her acceptance, and moreover, the money
deposited by the Defendant in Alliance Bank clearly shows
that they intended to create a legally binding relationship.
Hence the Plaintiff was awarded with the amount.
18
19. Conti…
An Indian authority in this regard is Lalman Shukla v.
Gauri Dutt, wherein a servant was sent by his master
to trace his missing nephew. In the meanwhile, he also
announced a reward for anyone finding his nephew, this
in itself is an example of an offer that is made to the
world at large and hence a General Offer.
19
20. Conti..
Valid acceptance based on fulfilment of condition
This concept has been given statutory authority under section 8 of the
ICA:
Performance of the conditions of a proposal, or the acceptance of any
consideration for a reciprocal promise which may be offered with a
proposal, is an acceptance of the proposal.
This section was applied by Allahabad high court in the case of Har
Bhajan Lal v. Har Charan Lal, wherein the father of a young boy
who ran from home issued a pamphlet for a reward for anyone who
would find him. The Plaintiff found him at the railway station and
sent a Telegram to his father. The Court held that the handbill was
an offer that was made to the world at large and anyone who
fulfilled the conditions is deemed to have accepted it.
20
21. General offer of continuing nature
When a general offer is of continuing nature, like it was in
a carbolic smoke ball case, it can be accepted by a number
of people till it is retracted (withdrawn) . However, when a
similar offer requires information regarding a missing thing,
it is closed as soon as the first information comes in.
Specific offer - A Specific offer is an offer that is made
to a specific or ascertained person, this type of offer can
only be accepted by the person to whom it is made
21
22. Cross offer
When two parties make an identical offer to each other, in
ignorance to each other’s offer, they are said to make
cross offers. Cross offers are not valid offers. For
example- if A makes an offer to sell his car for 7 lakhs to B
and B in ignorance of that makes an offer to buy the same
car for 7 Lakhs, they are said to make a cross offer, and
there is no acceptance in this case, hence it cannot be a
mutual acceptance.
22
23. Counter offer
When the offeree offers a qualified acceptance of the offer
subject to modifications and variations in terms of the original
offer, he is said to have made a counter offer. A counter offer is
a rejection of the original offer. An example of this would be if A
offers B a car for 10 Lakhs, B agrees to buy for 8 Lakhs, this
amounts to a counter offer and it would mean a rejection of the
original offer. Later on, if B agrees to buy for 10 Lakhs, A may
refuse the offer.
Standing offer
An Offer which remains open for acceptance over a period of
time is called a standing offer. Tenders that are invited for
supply of goods is a kind of Standing Offer
23
24. Difference between an offer and Invitation
to offer
Although Invitation to Offer is not a type of offer per se, it is
imperative to distinguish both to even construe what an actual offer
is.
An invitation to offer is an offer to negotiate, an offer to receive
offers, offers to chauffeur.
An offer is a final expression of willingness to get into a contract
upon those following terms.
The concept of Invitation to offer was explained in the Privy Council
case of Harvey v. Facey, the Plaintiffs in this asked two questions
from the defendant i.e.- Would you sell me your Bumper Hall pen ,
telegram me the lowest price? , the Defendant only gave the answer
to the latter question , post which he refused to sell.
The Court held that the defendant was not to sell as he had only
answered the second question and reserved the same for his first
question. Thus, this clearly shows the distinction between an offer
and invitation to offer.
24
25. Conti…
In Adikanda Biswal v. Bhubaneswar Development
Authority, when a development authority made an
announcement for allotment of plots on first come first
serve basis on payment of full consideration. An
application against this with full consideration was only
considered to be an offer, as the Development authority
only gave an invitation to offer, and the offer can only
be formalized into a contract when it is accepted by the
development authority.
25
26. Rules regarding display of goods in shops
In Pharmaceutical Society of Great Britain v.
Boots Cash Chemists Southern Ltd., lord GODDARD
CJ, said that it would be wrong to say that a shopkeeper
intends to sell everything that is displayed in his shop.
Meaning that the customer makes an offer, to which the
shopkeeper has the discretion to accept or deny. The
shopkeeper may say that he doesn’t have enough stock
of that good and therefore may not sell. Similarly, a
bankers catalogue of charges is also not an offer, the
auction held by a person is also only an invitation to
offer and he may not be liable for the transportation
costs that people may have to pay to come to the place
of auction, in case he cancels at the end moment.
26
27. Lapses and revocation of an offer
An offer lapses after a defined or reasonable time.
An offer lapse by not being accepted in the specified
mode
An offer lapses by rejection.
An offer lapses by the offeror or the offeror’s death or
insanity until acceptance.
An offer lapses by revocation before acceptance.
An offer lapses by subsequent illegality or destruction of
the subject matter.
27
28. Types of contract
Express Contracts – These contracts are those
wherein the terms of the contracts are expressed
clearly whether in written documents or orally.
Implied Contracts – There are no oral or written
terms in this type of contract. The contracts are
assumed owing to the facts of the parties. If an
individual visits a medical professional, he expects
to be diagnosed for a disease or illness and be
advised a cure. This is an implied contract and a
patient is capable of suing a medical practitioner for
malpractice.
28
29. Conti..
Void and Voidable Contracts – Void contracts are illegal
from the very beginning ( Void ab intio ) and hold no validity
under law. They are thereby un-enforceable. Voidable
contracts are unlike void contracts in the sense that one party
is bound by the contract and the unbound party is capable of
terminating the contract as they are unbound to it.
A quasi-contract is unlike a real contract. Salmond
defines quasi contracts as “there are certain
obligations which are not in truth contractual in the
sense of resting on agreement, but which the law
treats as if they were”. It is important to remember
that even though it is imposed by law, it is not
created by the operation of the contract. 29
30. Conti..
Contingent Contract – U/S Section 31 of the Indian
Contract Act, 1872 defines the term ‘Contingent
Contract’ as follows:
‘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’.
In simple words, contingent contracts, are the ones
where the promisor perform his obligation only when
certain conditions are met. The contracts of insurance,
indemnity, and guarantee are some examples
of contingent contracts.
30
31. How Contingent contract differ from wagering
agreement?
A wagering agreement is absolutely void (S.30) while on the
other hand contingent contract is a valid contract.
In a contingent contract, the future uncertain event is merely
collateral whereas in a wagering agreement the uncertain
event is a sole determining factor of the agreement.
In a wager, the parties are not interested in the occurrence of
the event except for winning or losing the best amount while
in a contingent contract the parties have a real interest in
occurrence or non-occurrence of the event.
All wager contracts are contingent contracts, but all
contingent contracts are not by way of the wager.
31
32. Conti..
Adhesion Contracts (Bond/ One sided)– These
types of contracts are those which are formed by the
stronger party. It is a sort of, “Opt for it or do not”
contract. The stronger party or the one that has the
bargaining power leaves the other party with a choice
whether to accept or reject the contract.
Aleatory Contracts – This type of contract involves a
mutual agreement that comes into being after an
unexpected occurrence, accident, or a natural calamity.
In this type of contract both the parties have an element
of risk. Fire or Car insurances are this type of contract.
32
33. Conti..
Bilateral and Unilateral Contracts – Bilateral
contracts involve two parties. Both parties are obliged to
one another for performing or abstaining to perform any
act. It is also called a two-sided contract as it involves
two way promises.
Meanwhile, unilateral contracts are those in which the
promise is made by only one party. They consist of an
offeror and offeree. The offeror makes a promise to
perform an action and is bound by the law to do so. The
offeree is not bound to the court even if he fails to
execute the requested action because he does not
promise anything at all.
33