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Contract
What Is Contract?
An agreement enforceable by law is a
contract.
Legal Obligation:
Process Of Contract
Offer or proposal
Acceptance
Promise
Agreement
Contract
Types of Contract
1. Valid Contract
2. Void Contract
3. Voidable Contract
4. Unenforceable Contract
5. Quasi Contract
6. Executed and Executory Contract
7. Express Contracts and Implied Contracts
Valid Contract: A contract that fulfills all the legal requirements,
such as the existence of agreement, intention for creating legal
relations, certainty, etc., is said to be a valid contract.
Express Contract:
An Express Contract is the one that very lucidly
conveys the purpose of the agreement.
An Express Contract exists when parties state the
terms and show their intention in words.
An Express Contract can be either oral or written.
Implied Contract:
An implied contract is one in which agreement is by
non-verbal conduct.
In an implied contract, the agreement of the parties
is demonstrated by their actions and roles. Such
contract are formed when one party accepts
something of value knowing that the other party
expects compensation.
Types of Offer
Express offer
Implied offer
Specific offer
General offer
Cross offer
Counter offer
Standing offer
The Acceptance
Sec. 2 (b) When a person to whom the proposal is made ,
signifies his assent thereto, the proposal is said to be
acceptance.
A proposal , when accepted become a promise.
Requirements for Valid Acceptance:
1.By a proper person-
Communication of Offer,
Acceptance and Revocation
1.Communication of Offer
An offer is said to have been made when it
comes to knowledge of the other person for
whom it was intended.
2.Communication of Acceptance
For Acceptance two steps required:
(i) Offeree transmits his acceptance and
(ii) Message reaches the Offeror.
Brogden Vs Metropolitan railways Co.
B.
CONSIDERATION
The life blood of
every contract
The Definition
2.
3.
Future X promises to deliver 100 Quintals of
rice to Y after a month, and Y promises to make the
payment a month after deliver of Rice.
1.
SUMMARY
Consideration is fundamental to the formation of
any contract. (Excluding Deeds)
Consideration is the Primary rule in a simple
contract.
An illegal consideration makes the whole contract
Invalid.
In India a Promise/Agreement without
consideration is Valid and Binding. However it is
considered Void in general.
Incapacity
Minor
Lunatic
Person
disqualified
by law
Unsound
mind
Idiot
Drunkard
Alien
Convict
Corporation
A minor,
Person of unsound mind
Person disqualified by the law
Minors
considered to be a minor
Two cases, a minor attainsmajority after
21years of age;
1. Where a guardian of minors person or
property has been appointed
2. Where the superintendence of minors
property is assumed by a Court of Wards
Idiot
Lunatic
Drunkards
Mental decay
Hypnotized persons
Alien enemy
Convicts
Undischarged solvents
Foreign sovereigns and ambassadors
Joint stock companies and statutory
Corporations
FREE CONSENT
What is Consent?
Coercion
(Voidable)
Mistake
(Void)
Flaws in
Consent
&
Their effects
Misrepresentat
ion
(Voidable)
Undue
Influence
(Voidable)
Fraud
(Voidable)
Coercion
Undue Influence
Fraud
Fraud
Misrepresentation
Misrepresentation
Mistake
Types of Mistake
1. Mistake of Law
1. Mistake of law of the country
2. Mistake of the foreign law
2. Mistake of Fact
1. Bilateral mistake
2. Unilateral mistake
Legality of Object
Forbidden by law
[Case: Srinivas
Mohan]
v.
Raja
Ram
Fraudulent
Immoral
1.
2.
3.
4.
5.