Beruflich Dokumente
Kultur Dokumente
The law of contract includes X chapters and consist of 238 clauses, it deals
with the general principles of law governing all sorts of contracts and also
covers the special provisions relating to special contract like pledge,
indemnity & guarantee etc. Some important terminologies involved are:
OFFER
Promise: When the person to whom the proposal is made signifies his
assent there to, the proposal is said to be accepted and it became a
“promise.”
Implied Offer: The offer which is not made in clear words, but is inferred
from the conduct of the offeror or the circumstances of particular case.
Also an offer may be:
ACCEPTANCE
COMMUNICATION
The Contract Act defines considertion as: when, at the desire of the
promisor, the promisee or any other person has done or abstain from
doing
AGREEMENT + ENFORCEABLE
BY LAW
CONTRACT
Types of Contracts
Void Contracts:
A Contract not enforceable or ceases to be enforceable by law is “Void
Contract”. It is void from the very beginning.
Voidable Contracts:
An agreement which is enforceable by law at the option of one or more
parties there to, but not at the option of other(s) is a “Voidable Contract”.
It may be valid when made and remain valid, till it is repudiated (Like
consent, etc.)
Contingent Contracts:
It is a contract to do or not to do something, if some event in future,
collateral to contract does or does not happen. Like insurance. Essential of
contingent contract are:
Dependence on a future event.
Collateral
Uncertain Event
Who are competent to Contract: Every person is able to contract:
FREE CONSENSUS
PERFORMANCE OF CONTRACT:
The parties to a contract must either perform or offer to perform their
respective promise, unless such performances are displaced with or
excused under the law. It may be of two types:
1. Actual Performance
2. Attempted Performance
Breach of Contract
A breach of contract occurs of any party refuses or fails to perform his part
of duty of the contract or by his act makes it impossible to perform his
obligation as per contract. The aggrieved party is relieved from performing
his obligation and gets a right to processed for loss & damages against the
party which is at fault.
A) The promisor may perform his promise on or before the due date of
performancem and the promisee is then bound to accept the performance.
B) The promisor may take advantage of the discharge by supervening
(Occur as an interruption or change to an existing situation), impossibility arising
between the date of breach and the due date of performance, in such case
promisee loose his right to claim for damages.
Actual Breach of Contract
Actual Breach of contract may occurs in any of the following two ways:
1. Rescission of Contract
2. Suit for Damages
3. Suit for specific performance
4. Suit for injunction
5. Suit upom Quantum
DISCHARGE OF CONTRACT
1. 2. 3. 4. 5.
Proper offer Intentions to Free Consent Capacity to Lawful
& its Proper create legal Contract Consideration
Acceptance relationship
6. 7. 8. 9. 10.
Lawful Agreements Certainty of Possibility of Legal
Object not declared Meaning Performance Formalities
Void
In other words, the person must be major, must be of sound mind and
must not be declared disqualified from contracting by any law to which he
is subject. If the parties to agreement are not competent to contract, then
no valid contract comes into existence.
Example I: X agrees to sell his car to Y Rs. 1,00,000/-. Mete, Y’s promise
to pay Rs. 1,00,000/- is the consideration for X’s promise to sell the car
and X’s promise to sell the car is the consideration for Y’s promise to pay
Rs. 1,00,000/-.
Example II: X promises to drop prosecution which he has initiated
against Y for robbery and Y promises to restore the value of things taken.
The agreement is void because the consideration is unlawful.
6. Lawful Object: The object of an agreement must be lawful. According
to Section 23 of the Indian contract Act, 1872, “the object is considered
lawful unless it is forbidden by law or is fraudulent or involves or implies
injury to the person or property of another or is immoral or is opposed to
public policy.”