Overview of Indian Contract Act 1872

Presented by, Group 1 (PRN: 01, o2,03, 04, 05, 06, 07, 08, 09, 10) SIOM, Nashik

Introduction
Section 2(h) of the Indian contract Act, 1872 defines the term contract as "Any agreement enforceable by law is a contract". Two essentials of a contracti) agreement (Offer +acceptance=agreement) and ii) enforceability (meaning of enforceability put in execution, to cause; to cause; to take effect). Under what conditions a contract stands valid? All agreements are contracts if it fulfills the following condition: They are made by the free consent of parties competent to contract - not caused by coercion, undue influence, fraud, misrepresentation and mistake. Made for a lawful consideration and with a lawful object- not immoral, fraudulent, forbidden by law, fraudulent against public policy. Not hereby expressly declared to be void. Case Law: Fischer vs. Bell (1961) Display of goods

Facts: The defendant Bell, exhibited in a show window in his shop, a knife with a marked price. Because it is an offense to offer such an item for sale Restriction of offensive weapons act (1951) he was convicted. The question arose whether the exhibition of that knife in the show window executed an offer for sale.
Held: Lord Parker, the chief justice, stated that the display of an article in a shop window is merely an invitation to treat. It is in sense an offer for sale, the acceptance of which constitutes a contract. It is quite impossible to say that an exhibition of goods in a shop window in itself an offer for sale.

Indian Law of contract : Section 2 (a) 2( b) 2(c) and 2(d)

Proposal is defined under section 2(a) of the Indian contract Act, 1872 as "when one person signifies to another his willingness to do or to abstain from doing anything with a view to obtain the assent of that other to such act or abstinence, he is said to make a Proposal/offer.

Section 2(b) defines promise in these words: When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal when accepted, becomes a Promise.
Section 2(c) The person making the proposal is called the" promisor and the person accepting the proposal is called the It promisee. Section 2(d) DEFINITION OF CONSIDERATION: When, at the desire of the promisor, the promisee or any other person has clone or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing, something, such Act or abstinence or promise is called a consideration for the promise.

Indian Law of contract (Section 2 e & f)

Section 2e:- Every promise & every set of promises, forming the
consideration for each other, is an agreement.

Section 2f:- Promises which forms the consideration or part of

consideration for each other are called reciprocal promises.

Law Case: Gauri Dutt announces that whoso ever finds her lost nephew, she would awards that person with 25000 Rs. Gauris servant finds Gauris nephew and asks for the reward.

In addition to Section 26, 27, 28,30; we have

Agreement without consideration, void, uncles it is in writing and registered, or is a promise to compensate for something done, or is a promise to pay a debt barred by limitation law.

Agreements void for uncertainty.- Agreements, the meaning of which is not certain, or capable of being made certain, are void.
Agreement void where both parties are under mistake as to matter of fact. Agreement in restraint of trade void.

Section 2(g) & 2(h) An agreement not enforceable by law is said to be void" [Sec.2(g)]. Thus a Void agreement does not give rise to any legal consequences and is void ab-initio. 1.Agreements by a minor or a person of unsound mind (Sec.l0) 2. Agreements made under a bilateral mistake of fact material to the Agreement (Sec. 20) 3. Agreements of which the consideration or object is unlawful (Sec.23) 4. Agreements of which the consideration or object is unlawful in pan, and the illegal part cannot be separated from the legal part (Sec. 24) 5. Agreements made without consideration (Sec. 25) Case Law An agreement enforceable by law is a Contract" [Sec.2(h)].

Contract Validity Formation Performance

Application of Indian Contract Act in Cyber Crime

A gives an invitation of offer to B via an online shopping portal. A promises to sell an Iphone to B in a discounted price. B transfers promised amount of money to A. When the product reaches B, he founds out that its an Iphone look like phone but not the actual Iphone (duplicate). In this case Indian Contract Act, 1872 and Information Technology Act, 2000 can be applied.

CASES (SECTION 56 of the INDIAN CONTRACT ACT, 1872)

An agreement to do an act impossible in itself is void.

Contract to do act afterwards becoming impossible or unlawful.

Innovation & Summary

Section 70 in The Indian Contract Act, 1872 Section 65 in the Indian contract Act,1872 Difference between restitution and compensation Case let : M/S. S.N.Nandy & Co. vs M/S. Nicco Corporation Ltd. on 23 February, 2011

Thanks!!