6 Indian Contract Act, 1872 6 6. Legal purpose and consideration 7. Not expressly void (cancelled) 8. Legal Formalities 3 Indian Contract Act, 1872 3 – B invites a friend S to dinner. He makes elaborate preparations. S does not show up for dinner and all preparations made by B are wasted. Since this was a contract between the parties, B cannot sue S to take legal action against him for breaching the obligation to come to dinner. How could you say that the above was not a contract, when it was clearly an agreement between the two friends? 9 Indian Contract Act, 1872 9 5.The offer may be specific or general There must be the purpose of the offer. -If the offer is aimed at a specific person, we speak of a specific offer. -If it is intended for the whole world as a whole, it is called a general offer. e.B.
Advertising 6. The offer must be communicated 7. The offer must be distinguished from the invitation to offer the availability of books available for rent in the bookstore. All are examples of invitations to offer. The advertiser may or may not sell this. e.B. the publication of timetables by the railways are examples of expressions of intent. 1 Indian Contract Act, 1872 1 Indian Contract Act 1872 5 Valid Contract Article 10To be a valid contract, it must comply with the following: Agreement – Offer and Acceptance Consensus-ad-idem (Spirits Meeting), that is, people must accept the same thing in the same sense and at the same time.
Intention to establish a legal relationship with a social relationship or an illegal/illegal relationship. (Balfour vs. Balfour) Parker Vs.Clark 7 Indian Contract Act, 1872 7 A invites B to dinner at a restaurant. B accepts the offer. A rents a taxi, but B does not show up. Can A get it back from B? R told S that he would sell his computer to S for Rs. 15000/-. This is a clear offer of R to S. Case agreement = offer + its acceptance 5 Indian Contract Act, 1872 5 3.
Competence of the parties Everyone is able to conclude a contract, with the exception of minors, people with an unhealthy mind, people disqualified by another law. 4. Consideration Something in return B promises S that he will buy his bike for Rs.35000. 5. Free consent Understanding of the mind and there is no undue pressure or influence when entering into a contract 4 The contract consists of two elements:A) An agreement B) Legal obligation All contracts are agreements, but not all agreements are contracts A general introduction to the contract. Definition of a contract A contract is an agreement between competent parties based on the authentic consent of the parties, 8 Indian Contract Act, 1872 8 Requirements for a valid offer 1. The offer must be made explicitly or implicitly – Must be made in a way that leaves no doubt about it. proposal in words, the promise is said to be explicit, and the proposal made other than in words is said to be implicit. Like what. B says S: Can you fix my computer? – Express offer A street vendor of photo albums quietly extends a room in front of a passer-by – taking possession of it.- Implicit offer for sale. 2.
The tender must intend to establish a legal relationship 3. The offer must be safe and not vague in sense 4. The offer must be determined and certain in the sense 2 Indian Contract Act, 1872 2 The term contract in the ordinary sense means an agreement between two persons. Contract law aims to regulate the conduct of persons who enter into contracts so that a conflict between such persons can be resolved at a later date. Meaning of the contract: § 2 (h) defines a contract: A legally enforceable agreement is a contract. (e.B.C an agreement with D to sell him goods for Rs. 25000. 8 Valid contract Possibility of performance: The impossibility, whether known to the parties or not, renders a contract invalid. Necessary legal formalities: e.B. deed of sale of real estate. 6 Free and genuine consent, i.e.
free from abuse of fraud related to fraud, error of misrepresentation, which is responsible for the contract § 11 – is of age, is in the right direction and is not excluded from the contract. Legal consideration and object, that is, something in return and which must be lawful. No consideration – No contract (Nudum Pactum) 4 Indian Contract Act, 1872 4 1. An agreement, a proposal / an offer and an acceptance: Agreement = proposal + its acceptance Must be made by two people, one makes an offer and the other accepts this offer. 2. Intention to establish a legal relationship The Court wants to measure the degree of seriousness. Not all loose conversations, not an exchange of subtleties, not an occasional social engagement, you consider a contact. Essential for a valid contract INDIAN CONTRACT ACT, 1872 Presented to:- Dr. RAJENDRA MISHRA presented by:- RAJAT REKHI (24-MBA-07) 13 Indian Contract Act, 1872 13 2. Classification of the contract according to the nature of the training a. Explicit contract: The contract is concluded by spoken or written words. b.
Implied contract: a contract concluded on the basis of the action of the parties and not by their express, written or oral words. c. Quasi-contract – The contract is concluded by order of the court and not by agreement of the parties 3. Classification of the contract according to the scope of performance a. Contract executed If both contracting parties have fulfilled their respective obligations, the contact is deemed to have been performed. b. Performance contract If one or both of the contact parties still have certain things to accomplish in the future or if there is still something to be done under the terms of the contract, the contract is called an executable contract. 12 Indian Contract Act, 1872 12 1.
Classification of the contract on the basis of applicability: a. Valid contract: A contract that satisfies all the essential elements of a valid contract in accordance with Article 10 […].