Law Means a ‘Set Of Rules’ . Which are recognized & Enforced by the state .The main propose of Law is to protect the society .Since the value system of society keeps onchanging ,the law also keeps changingaccording to the changing requirements of thesociety
Commercial law is not separate branch of law .Basically it is a part of civil law which deals with the rights and obligations of mercantile persons arising out of mercantile transaction in respect of mercantile property . It includes laws relating to various contracts ,partnership, companies , negotiable instrument ,arbitration.
According to Indian contract act 1872 “An agreement enforceable by law is a contract” Its appears that contract must have the following two elements- (a) An agreement (b)Enfoceability of an agreement Contract= An agreement+ Enforceability of an agreement
Every promise and every set of promises forming the consideration for each other is an agreement For example –A offer to sell his radio for Rs3000 to B . B accept this offer . This offer after acceptance become promise and this promise is treated as an agreement between a and B Agreement =offer +acceptance
The plaintiff wife and defendant husband were married in 1900. The husband was a Civil servant in England. He was posted in Ceylon. His wife could not accompany him on account of ill health. The husband promised her to pay 30 BP per month as maintenance but failed to keep his promise.
“ When an agreement enforceable by law it become contract”so All contracts are an agreement but all agreements are not contracts. Only after fulfill the condition mention under section 10 of Indian contract act 1872
(i) Offer & Acceptance(ii) An Intention to Create Legal Relations(iii) Lawful Consideration & Lawful Object(iv) Capacity of Parties(v) Free Consent(vi) Writing and Registration(vii) Certainty(viii) Possibility of Performance(ix) Not Expressly Declared void
According to Sec 10, “All agreements arecontracts if they are made by the free consentof the parties competent to contract, for alawful consideration and with a lawful objectand are not hereby expressly declared to bevoid”.
Valid Contract Void AgreementWhen an agreement When an agreement notEnforceable by law it Enforceable by law itBecome valid Become void
(i) Valid Contracts : A valid contract is an agreement enforceable by law. An agreement becomes enforceable by law when all the essential elements of a valid contracts are available.(ii) Voidable Contracts: According to Sec 2 (i) “an agreement which is enforceable by law at the option of one or more of the parties thereto, but not at the option of the other or others, is a voidable contract.