Indian Contract Act 1872

CA Farooq Haques ACCOUNTING ACADEMY
Best Academy for CA, CS, CFA, CPA
Since 13 years Nagpur

Mangalam Arcade, Above Venus Book Depot,
Gokulpeth, Nagpur. Ph No: 0712-2520030, 9422107444
What after CPT?

JOIN AAs FTC FULL TIME COACHING (11 am to 6pm)
CA-IPCC in Nagpur with best faculties CA Farooq Haque Tax & Law CA Manoj Sharma ITSM & Costing FM CA Ravi Taori Accounts & Audit
ACCOUNTING ACADEMY - CA/CS/CWA 9422107444
ALL INDIA RANKS (AIR) from

ACCOUNTING ACADEMY in 2010 Exams
SASHANK KUMAR Disha Murarka Ekta Dhiran Pawan Sarda Hari Kawal Jham Radharaman Lahoti Neha Shah Yogest Satpute Nidhi Agrawal Sonal Gandhi Aniruddha Agrawal 36th AIR 37th AIR 37th AIR 8th AIR 25th AIR 26th AIR 40th AIR 11th AIR 42nd AIR 43rd AIR 48th AIR IPCC IPCC IPCC PCC PCC PCC PCC CA Final (Pune) CA Final CA Final (Pune) CA Final
CA IPCC Nagpur Topper 36th All India Rank Mr. Sashank Kumar
Took wise decision to join all 7 subjects with AA

Lets hear what Sashank Says I would like to extend my thanks to Accounting Academy and my professors for all 7 subjects Farooq Sir, Manoj sir, Ravi Sir. AA is really a top ranked destination for CA students where teaching is given preference over all other matters. All the professors are young and dynamic and all doubts are cleared then & there. To any CA aspiring student I would surely recommend AA as it will help you to develop yourself and your concepts better than anyone else.
CA IPCC Batch th Starts 5 August 2011
Note: Student may join individual subject also.
Why Join AA for all subjects..?

SUFFICIENT SELF STUDY TIME
You get maximum time for self-study. Morning 6 to 11am + Evening 7 to 10pm. i.e., approximately 8 hours per day (i.e. around 1440 hours in 6 months) We dont take few classes in the morning and few in the evening as it results in wastage of at least 2 to 3 hours daily on commutation and thereby reducing the time for self-study which is of utmost importance. If you join classes at many places, youll not only loose lot of time on running from one place to another but also not be able to concentrate in the class. Timing best suited for Monsoon & Winter session Best program for outstation student also
Accounting Academys IPCC Challenge

No one else teaches so many hours in each subject as we do No one else clears so many doubts as we do No one else gives so much personal attention as we do No one else gives time beyond classroom hours as we do No one else solves so many questions & case studies as we do No one else allows you to think beyond the books as we do No one else makes learning so much fun as we do
Not one dull class in entire course

Before taking any hasty decision Come for counseling with AAs experts to KNOW EVERYTHING ABOUT IPCC Anytime after CPT exams Call 0712-2520030
THE INDIAN CONTRACT ACT 1872 CPT LAW By Prof. Poonam Khandelwal ACCOUNTING ACADEMY
AGREEMENT = OFFER + ACCEPTANCE
OFFER
GENERAL OFFER
Can be accepted by performance of conditions
Ex: to search lost dog / son
SPECIFIC OFFER
ACCEPTANCE & OFFER BOTH MUST BE COMMUNICATED

CROSS OFFER = IDENTICAL OFFER
COUNTER OFFER = REJECTION OF ORIGINAL OFFER
STANDING OFFER: A continuous offer.
ACCEPTANCE CAN NEVER PRECEDE AN OFFER

INVITATION TO PROPOSAL PROPOSAL
INTENTION TO PUT PROPOSAL PROPOSAL

Ex: Remember the song
COMMUNICATION OF OFFER
IS COMPLETE WHEN IT COMES TO KNOWLEDGE OF OFFEREE
COMMUNICATION OF ACCEPTANCE
OFFER
KAREENA (OFFEROR) SAIF
Acceptance put into

course of transmission
(OFFEREE)
Communication is complete as against the
offeror (Kareena)
COMMUNICATION OF ACCEPTANCE
KAREENA (OFFEROR) Acceptance put into course of transmission SAIF (OFFEREE)
KAREENA (OFFEROR)
Letter reaches offeror
SAIF
(OFFEREE)
COMMUNICATION OF ACCEPTANCE IS COMPLETE AS AGAINST

OFFEREE (SAIF)
REVOCATION OF
OFFER = BY OFFEROR BEFORE IT REACHES THE OFFEREE ACCEPTANCE = BY OFFEREE
BEFORE OFFEROR GETS KNOWLEDGE OF ACCEPTANCE

COMMUNICATION IS
COMPLETE AS AGAINST PERSON MAKING IT WHEN HE PUTS IT

INTO COURSE OF TRANSMISSION
COMPLETE AS AGAINST TO WHOM IT IS MADE: WHEN HE

RECEIVES IT
1. Indian Contract Act, 1872 is passed by: a. Indian Parliament b. British Parliament c. US Congress d. None
2. In an auction, auctioneer accepts the offer not by speaking but striking the hammer on table. It is a. Express Acceptance b. Implied acceptance
3. Indian Contract Act, 1872 extends to whole of India except J & K is given in a. Section 1 of Indian Contract Act. b. Constitution of India
1. On the 5th of a month, X makes an offer to Y, by a letter, which reaches Y on 6th. On the 7th, Y posts his letter of acceptance. Meanwhile, on the 6th X posts a letter to Y revoking the offer. On seeing it Y sends a telegram to X on 8th confirming the acceptance given through his letter of the 7th. Discuss: a. Communication of offer is complete on? b. Assuming no revocation when is communication of acceptance completed as against offeror.? c. Till what date X can revoke his offer? d. Is there any contract between X & Y.?
CONTRACT =
AGREEMENT + ENFORCEABLITY BY LAW
SECTION 10: ESSENTIALS OF CONTRACT

AGREEMENT
FREE CONSENT
PARTIES = COMPETENT TO CONTRACT

LAWFUL CONSIDERATION LAWFUL OBJECT
NOT EXPRESSELY DECLARED TO BE VOID

EVERY CONTRACT IS AN AGREEMENT BUT EVERY AGREEMENT NEED NOT BE CONTRACT
EXAMPLE:
1. SOCIAL OR FRIENDLY AGREEMENT 2. POLITICAL AGREEMENT
3. DOMESTIC & FAMILY AGREEMENT

4. AGREEMENT NOT POSSESSING ALL ELEMENTS OF VALID CONTRACT
5. AGREEMENT TO MAKE CONTRACT

AGREEMENT
EXAMPLE:
1. AGREEMENT IN RESTRAINT MARRIAGE 2. AGREEMENT IN RESTRAINT TRADE 3. AGREEMENT IN RESTRAINT LEGAL PROCEEDINGS 4. WAGERING AGREEMENT (Illegal in Maharashtra & Gujarat) 5. AGREEMENT BY INCOMPETENT PERSONS etc..
AGREEMENTS OPPOSED TO PUBLIC POLICY
1. trading with the enemy. 2. stifling (suppressing) prosecution: 3. Champerty and maintenance - When a person helps another
in litigation
does not share in the proceeds of the action, it is called MAINTENANCE. exchange of a promise to hand over a portion of the fruits of the litigation, if any, it is called CHAMPERTY. VOID if litigation is of a gambling character
4. 5. 6. 7. 8. 9.
marriage brokerage. sale of public offices, titles and appointments. to create monopolies. restraining personal liberty. restraint of parental rights restraint of marriage / trade / legal proceedings
VOID
Rule AGREEMENTS IN RESTRAINT OF TRADE = VOID

Exceptions to rule:
1. 2. 3. 4. 5.
Sale of goodwill Partner's competing business Rights of outgoing partner Partner's similar business on dissolution An agreement between any partner and the buyer of the firm's goodwill
6. Trade Combinations 7. Negative stipulations in service agreements 8. Sole Selling Agents Agreement
Rule
Agreements in restraint of Legal Proceedings = VOID
Exceptions to rule:
(i) any dispute between them in respect of any subject shall be referred to arbitration (present disputes) (ii) To refer to arbitration any question between them which has already arisen or which may arise in future, is valid; but such a contract must be in writing. (agreement to refer past & future disputes to arbitration) (iii) Referring disputes to court in particular jurisdiction
WAGERING Agreements = VOID (one party is to win and the other to lose)
Imp points:
Share market transactions in which there is clear intention to give and take delivery share is not wagering Contract of insurance is not wagering An agreement by way of wager is void. In the State of Maharashtra and of Gujarat wagering agreement are not only void but also illegal. Hence, Collateral agreement will also become VOID.
Discuss:
Chandan, in NAGPUR, bets with Nandan and loses. Chandan applies to Tandon for a loan in order to pay Nandan. Tandon gives the loan to Chandan to enable him to pay Nandan. Can Tandon recover the amount of loan from Chandon? Would it make any difference if this transaction takes place in Hyderabad?
CLASSIFICATION ACCORDING TO ENFORCEABILITY
VOID AGREEMENT
VOID CONTRACT
VOIDABLE CONTRACT
NOT ENFORCEABLE
CEASES TO
BE ENFORCEABLE
ENFORCEABLE AT OPTION OF
AGGRIEVED
PARTY
NO
RESTITUTION
RESTITUTION / PAYMENT / COMPENSATION
RESTITUTION / COMPENSATION
VALID CONTRACT : HAVING ALL ESSENTIALS OF SEC 10

ILLEGAL AGREEMENT
AGREEMENT OF IMMORAL CRIMINAL NATURE
FORBIDDEN BY LAW
OPPOSED TO PUBLIC POLICY
ILLEGAL AGREEMENT = VOID COLLATERAL AGREEMENT = VOID Unenforceable contract: Some technical defects
LAWFUL CONSIDERATION
UNLAWFUL CONSIDERATION:
1. FORBIDDEN BY LAW 2. DEFEAT PROVISIONS OF ANY LAW 3. FRAUDULENT
4. INJURY TO PERSON OR PROPERTY

5. OPPOSED TO PUBLIC POLICY
AGREEMENT WILL BE UNLAWFUL & VOID

UNLAWFUL / ILLEGAL AGREEMENT

ALL ILLEGAL AGREEMENT ARE UNLAWFUL BUT
ALL UNLAWFUL AGREEMENTS NEED NOT BE ILLEGAL
UNLAWFUL
ILLEGAL
EXPRESS Contract
(words either oral / written)
IMPLIED / TACIT Contract

(conduct of parties)
EXECUTED contract
(performed by ALL the parties)
EXECTORY contract
(both the parties have still to perform)
BILATERAL contract
(both the parties are yet to perform their respective obligations) (Like Executory contracts and are called as contracts with Executory consideration)
UNILATERAL contract
(one party has to perform his obligation) ACCOUNTING ACADEMY - CA/CS/CWA 9422107444
Consideration
May be in CASH or KIND Something in return (quid pro quo) May be adequate or inadequate Should at desire of promisor Must be lawful Past, present, future Act which promisor is anyway bound to do is not consideration Can be given to or by 3rd Person (Stranger to consideration)
Rule: Contract without consideration Valid contract Exception to the rule (Sec 25)
1. writing + registered + account of natural love and affection 2. promise to compensate a person who has already VOLUNTARILY done something for the promisor, or something which the promisor was legally compellable to do; 3. Promise + writing + signed + to pay wholly or in part time barred debt 4. Gifts actually made i.e. completed gift 5. Agency Contract (partnership)
PRIVITY OF CONTRACT
Stranger to contract cannot sue parties to contract
Exception to the rule

a. Beneficiary can sue
b. Assignee of contract
c. Devolution by operation of law

a. Insurance company can sue
b. Principal can enforce contract entered into by Agent
There can be stranger to consideration BUT

There cannot be stranger to contract
FREE CONSENT (Sec 14)

NOT CAUSED BY:
COERCION
UNDUE INFLUENCE
FRAUD
MISREPRESENTATION MISTAKE
CONSENSUS AD IDEM: Two Minds With One Intention
COERCION (Sec 15)

committing or threatening to commit, any act forbidden by the IPC or unlawful detaining, or threatening to detain, any property to the prejudice of any person whatever with the intention of causing any person to enter into an agreement.
EFFECT:
CONTRACT BECOMES VOIDABLE AT THE OPTION OF THEACCOUNTING AGGRIEVED PARTY ACADEMY - CA/CS/CWA 9422107444
UNDUE INFLUENCE (Sec 16)

One of the parties is in a position to dominate the will of the other and He uses the position to obtain an unfair advantage MORAL COERCION
EFFECT:
CONTRACT BECOMES VOIDABLE AT THE OPTION OF THE AGGRIEVED PARTY

Burden of Proof The burden of proving that the contract is not induced by undue influence lies on the party who is in a position to dominate the will of the other.
PRESUMPTION OF UNDUE INFLUENCE

Where he holds a real or apparent authority over the other (For ex- master & servant, ITO & Assessee) Where he stands in a fiduciary relationship to the other. Where a party makes a contract with a person whose mental capacity is temporarily or permanently affected by reason of age, illness, or mental or bodily distress. Presumption of UE: Parent and child, guardian and ward, trustee and beneficiary, doctor and patient, solicitor and client, religious adviser and disciple. NO Presumption Landlord and tenant Creditor and debtor, Husband and wife.
FRAUD (Sec 17)

False Statement Active Concealment Intentional non-performance Deception: "Any other act fitted to deceive" Fraudulent act or omission
EFFECT:

Rule: Silence
Fraud
In following contract Silence = Fraud 1. CONTRACT OF UTMOST GOOD FAITH Insurance Contract, Sale Of Immovable Property, Marriage Contract, Allotment Of Shares Contract Of Family Settlement. 2. CONTRACT OF PARTNERSHIP 3. CONTRACT OF GUARANTEE 4. CONTRACT BY PARTIES HAVING FIDUCIARY RELATION 5. CHANGE IN FACTS BEFORE CONCLUSION OF CONTRACT 6. REQUIRED BY LAW 7. IN CASE OF LATENT DEFECTS
MISREPRESENTATION (Sec 18)

Innocent Or Unintentional False Statement WITHOUT Intention To Deceive
EFFECT:

No Fraud / Misrepresentation
If the aggrieved party had the means of discovering the truth with ordinary diligence
If the aggrieved party gave consent in ignorance of misrepresentation / fraud If the party after becoming aware of the misrepresentation, affirms or ratified the contract. If the party has not rescinded the contract with reasonable period of time. If third party has acquired rights in the subject matter of contract for value and in good faith
MISTAKE
Misconception / Misunderstanding / Erroneous BELIEF
EFFECT:
USUALLY
MISTAKE DOES NOT AFFECT VALIDITY OF CONTRACT
EFFECT OF MISTAKE :
MISTAKE OF LAW
LAW OF LAND FOREIGN LAW
MISTAKE OF FACT
BILATERAL UNILATERAL
VALID
VOID
VOID
VALID **
** WITH CERTAIN EXCEPTIONS Mistake as to the identity of the party contracted with Mistake as to the nature of the contract.
BILATERAL MISTAKE Mistake as to identity of subject matter. Mistake as to existence of subject matter. Mistake as to quality of subject matter. Mistake as to quantity. Mistake as to price. Mistake as to title. Mistake as to existence of state of affairs
A sells a painting to B saying that it is an original work of Picasso Unknown to both the parties, the original painting was stolen and its copy was placed there The contract is void on grounds of a. bilateral mistake as to the quality of the subject matter. b. unilateral mistake as to the quality of the subject matter. c. mistake as to law d. mistake as to identity of art items
K agreed to sell M, a cargo of com, supposed to be in transit. Unknown to both parties, the com had become fermented & had been sold by the Master of the Ship. The
agreement is void on grounds of mistake as to
a. Existence of subject matter

b. Identity of goods c. Quantity of goods
d. Quality of goods
A contract was made for purchase of certain bales of cotton to arrive by a ship called "Peerless" from Mumbai. Two ships of the same name (Peerless) were to sail from Mumbai. Buyer intended to buy cargo of one ship but Seller was selling the cargo of other. The contract is void on grounds of mistake as to a. Existence of subject matter
b. Identity of goods
c. Quantity of goods d. Quality of goods P wrote to H inquiring price of rifles suggesting that he might buy as many as 50. On receipt of information, he telegraphed, "Send three rifles". Due to telegraphic mistake, message was transmitted as "Send the rifles". H despatched 50 rifles. The agreement is void on account of mistake as to _ a. Existence of subject matter b. Identity of goods
c. Quantity of goods
d. Quality of goods
Table napkins were sold at an auction described as "with the crest of Charles I and the authentic property of that Monarch". But napkins were only Georgian. The agreement is void due to a. Mistake as to existence of subject matter b. Mistake as to identity of goods c. Mistake as to quantity of goods
d. Mistake as to quality of goods
K took a lease of a fishery, which unknown to either party already belonged to K. The lease is void on grounds of mistake as to-
a. Fishing Rights
b. Lease Rights c. Identity of Subject Matter
d. Title
M contracted to take on rent, a property for viewing the coronation procession of the King. Unknown to the parties, the procession had already been cancelled. The contract is void due to a. Mistake as to Physical
Impossibility
b. Mistake as to Legal Impossibility c. Object being opposed to public policy
d. All of the above
The maxim "Ignorantia juris non excusat" stands for a. Law will not punish ignorant people b. Law will punish illiterate people c. Ignorant people can excuse law
d. Ignorance of law of land is no excuse.
S knew that on account of his criticism of plays in past, he would not be allowed entry at a theatre. The Managing Director of the theatre, gave instructions that a ticket should not be sold to S. S, however, obtained a ticket through one of his friends. On being refused admission to the theatre, he sued for damages for breach of contract. a. S is entitled to damages b. S is entitled to enter the theatre c. There is a valid contract between the theatre Company and S
d. There is no contract between the Theatre Company and S.
Cundy vs.Lindsay Case deals with a. coercion b. undue influence c. mistake as to the nature of transaction
d. mistake as regards identity.

PARTIES COMPETENT TO CONTRACT (Sec 11)
1.MAJORS (18+)
2.PERSONS OF SOUND MIND 3.PERSONS NOT DISQUALIFIED BY LAW OF LAND
MINOR (Less Than 18 Yrs )

EFFECTS OF CONTRACT WITH MINOR:
1. VOID AB INITIO (mohribibi v. dharmodas ghose) 2. NO RATIFICATION a minor had not completed a transaction during his minority & continues to complete the same on majority, he will be liable for the whole transaction.[Managanlal v.Ramanlal] 3. NO ESTOPPEL & Can plead minority
4. NO RESTITUION / COMPENSATION
5. NO SPECIFIC PERFORMANCE 6. MINOR AGENT/ PARTNER 7. LIABILITIES OF NECESSARIES OF LIFE 8. NO LIABILITY OF PARENTS 9. GUARANTEE FOR MINOR9422107444 OR BY A MINOR
ACCOUNTING ACADEMY - CA/CS/CWA -
PERSON OF UNSOUND MIND

EXAMPLES:
1. 2. 3. 4. 5.
IDIOT LUNATIC INTOXIACTED PERSON HYPNOTISED PERSON MENTAL DECAY
THEY CAN ENTER INTO CONTRACT WHEN THEY ARE OF SOUND MIND
PERSON DISQUALIFIED BY LAW

EXAMPLES:
1. ALIEN ENEMY 2. FOREIGN SOVEREIGNS 3. CORPORATIONS & COMPANIES 4. INSOLVENT 5. CONVICTS
CONTIGENT CONTRACT
Characteristics:
1. DEPENDS UPON HAPPENING OR NON-HAPPENING OF EVENT 2. SUCH EVENT IS UNCERTAIN 3. IT DEPENDS ON COLLATERAL/ INCIDENTAL EVENT 4. EVENT MUST NOT BE MERE WILL OF THE PROMISOR 5. MUST CONTAIN ALL ESSENTIALS OF VALID CONTRACT
Example: CONTRACT OF INSURANCE & GUARANTEE Annual maintenance contracts

CONTIGENT CONTRACTS = VALID

IF IT DEPENDS UPON HAPPENING OR NONHAPPENING OF AN
IMPOSSIBLE EVENT = VOID
PERFORMANCE OF CONTRACT
EFFECT OF REFUSAL OF PARTY TO PERFORM PROMISE WHOLLY
OTHER PARTY MAY PUT AN END TO CONTRACT
TENDER OF PERFORMANCE
VALID TENDER:

MUST BE UNCONDITIONAL AT PROPER TIME & PLACE REASONABLE OPPORTUNITY FOR SEEING THINGS OFFERED
PROMISOR IS NOT RESPONSIBLE FOR NONPERFORMANCE & LOSES NO RIGHT UNDER CONTRACT
TIME & PLACE OF PERFORMANCE

WHEN NO TIME SPECIFIED PERFORM IN REASONABLE TIME ON CERTAIN DAY without APPLICATION USUAL HOURS OF BUSINESS ON CERTAIN DAY WITH APPLICATION AT PROPER PLACE IN USUAL HOURS
OR ANY OTHER MANNER AS PROMISEE PRESCRIBES
DISCHARGE BY PERFORMANCE
WHEN EACH PARTY PERFORMS HIS OBLIGATION
VALID TENDER ALSO DISCHARGES THE CONTRACT

DISCHARGE BY AGREEMENT
BY:
1.
2. 3. 4. 5. 6.
NOVATION (Substitution Of New Contract) ALTERATION (Changes In One / More Terms) RESCISSION (All Or Some Terms Cancelled) REMISSION (Lesser Fulfillment) WAIVER (Giving Up Some Right) MERGER (Superior Right Accruing)
DISCHARGE BY IMPOSSIBILITY OF PERFORMANCE

AT TIME OF MAKING CONTRACT : WITH KNOWLEDGE VOID AB INITIO W/O KNOWLEDGE VOID
1. 2.
SUBSEQUENTLY IMPOSSIBLE VOID SUPERVENING IMPOSSIBILTY

SUPERVENING IMPOSSIBILTY
1. DESTRUCTION OF SUBJECT MATTER
2. DEATH / INCAPACITY IF PESONAL SKILLS INVOLVED 3. OUTBREAK OF WAR 4. GOVNT INTERVENTION
IMPOSSIBILTY OF PERFORMANCE
NOT AN EXCUSE
1. DIFFICULTY OF PERFORMANCE
2. COMMERCIAL HARDSHIP 3. DUE TO FAILURE OF THIRD PERSON PROMISOR RELIED ON 4. STRIKES, LOKOUTS 5. FAILURE OF ONE OBJECT
APPROPRIATION OF PAYMENTS
DEBTOR INTIMATES
AS INTIMATED
DEBTOR DOES NOT
INTIMATES
TO ANY LAWFUL DEBT

JOINT PROMISORS (JP)
LIABILITY DEVOLVES ON LR ON DEATH ON ANY JP
RIGHT DEVOLVES ON LR ON DEATH ON ANY JP

ANY ONE OF THEM CAN BE COMPELLED TO
PERFORM
RELEASE OF ONE JP DOES NOT DISCHARGE

OTHER JPS
BREACH OF CONTRACT
WHEN ONE PARTY BREAKS HIS OBLIGATION
WHICH GIVES RIGHT OF ACTION TO INJURED PARTY
ACTUAL BREACH
1.
2.
ON DUE DATE OF PERFORMANCE DURING THE PERFORMANCE

By EXPRESS REPUDIATION IMPLIED REPUDIATION
1. 2.
ANTICIPATORY BREACH
ONE PARTY REPUDIATES BEFORE THE TIME OF PERFORMANCE ARRIVES
PROMISEE TREAT CONTRACT AS DISCHARGED PROMISEE CAN TAKE LEGAL ACTION IMMEDIATELY
OR
MEASURE OF DAMAGES (ANTICIPATORY)

CONTRACT ENDED AT ONCE KEPT ALIVE TILL PERFORMANCE DATE
PRICE ON DATE OF PERFORMANCE
PRICE ON DATE OF BREACH
(-)
CONTRACT PRICE
(-)
CONTRACT PRICE
PRINCIPLES TO ASCERTAIN TO DAMAGES

DAMAGES ARISING NATURALLY ARE ALWAYS RECOVERABLE
DAMAGES NOT ARISING IN USUAL COURSE ARE NOT RECOVERABLE

DAMAGES IN CONTEMPLATION OF THE PARTIES ARE RECOVERABLE
Natural Damages Remote Damages
Always recoverable Never Recoverable

Recoverable only if in contemplation of both the parties Genuine + Pre-estimated Recoverable to the extent estimated
Special Damages
Liquidated Damages
Penalty
Vindictive / Exemplary damages
Not genuine + Pre-estimated Not recoverable

Recoverable only in 2 cases: Wrongful dishonor of cheque & breach of marriage contract ACCOUNTING ACADEMY - CA/CS/CWA 9422107444
REMEDIES FOR BREACH

RESCISSION DAMAGES QUANTUM MERUIT
SPECIFIC PERFORMANCE
INJUCTION
RESTITUTION
QUANTUM MERUIT
AS MUCH AS EARNED
AS MUCH AS IS MERITED
IT DOES NOT ARISE OUT OF CONTRACT ; IT

IS CLAIM ON QUASI OBLIGATION
CONTRACTUAL
QUASI CONTRACTS
ARE NOT CONTRACT
BUT LAW RECOGNISE THEM AS
RELATIONS RESEMBLING THOSE CREATED BY CONTRACT

Quasi Contract
Claim for necessaries supplied to a person incapable of contracting Re-imbursement of person paying money due by another in payment of which he is interested Obligation of person enjoying benefit of a nongratuitous act Responsibility of finder of goods Liability of person to whom money is paid or thing delivered by mistake or under coercion.
Before taking any hasty decision Come for counseling with AAs experts to KNOW EVERYTHING ABOUT IPCC Anytime after CPT exams
BEST OF LUCK
TEAM ACCOUNTING ACADEMY

Indian Contract Act 1872

Încărcat de

Informații document

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

Indian Contract Act 1872

Încărcat de

Drepturi de autor:

Formate disponibile

CA Farooq Haques ACCOUNTING ACADEMY

Best Academy for CA, CS, CFA, CPA

Since 13 years Nagpur

Gokulpeth, Nagpur. Ph No: 0712-2520030, 9422107444

What after CPT?

ALL INDIA RANKS (AIR) from

ACCOUNTING ACADEMY - CA/CS/CWA 9422107444

Took wise decision to join all 7 subjects with AA

CA IPCC Batch th Starts 5 August 2011

Note: Student may join individual subject also.

ACCOUNTING ACADEMY - CA/CS/CWA 9422107444

Why Join AA for all subjects..?

Accounting Academys IPCC Challenge

Not one dull class in entire course

ACCOUNTING ACADEMY - CA/CS/CWA 9422107444

ACCOUNTING ACADEMY - CA/CS/CWA 9422107444

AGREEMENT = OFFER + ACCEPTANCE

ACCEPTANCE & OFFER BOTH MUST BE COMMUNICATED

CROSS OFFER = IDENTICAL OFFER

COUNTER OFFER = REJECTION OF ORIGINAL OFFER

STANDING OFFER: A continuous offer.

ACCEPTANCE CAN NEVER PRECEDE AN OFFER

INVITATION TO PROPOSAL PROPOSAL

INTENTION TO PUT PROPOSAL PROPOSAL

ACCOUNTING ACADEMY - CA/CS/CWA 9422107444

ACCOUNTING ACADEMY - CA/CS/CWA 9422107444

Acceptance put into

Communication is complete as against the

Letter reaches offeror

COMMUNICATION OF ACCEPTANCE IS COMPLETE AS AGAINST

BEFORE OFFEROR GETS KNOWLEDGE OF ACCEPTANCE

COMPLETE AS AGAINST PERSON MAKING IT WHEN HE PUTS IT

COMPLETE AS AGAINST TO WHOM IT IS MADE: WHEN HE

ACCOUNTING ACADEMY - CA/CS/CWA 9422107444

ACCOUNTING ACADEMY - CA/CS/CWA 9422107444

SECTION 10: ESSENTIALS OF CONTRACT

PARTIES = COMPETENT TO CONTRACT

NOT EXPRESSELY DECLARED TO BE VOID

EVERY CONTRACT IS AN AGREEMENT BUT EVERY AGREEMENT NEED NOT BE CONTRACT

3. DOMESTIC & FAMILY AGREEMENT

5. AGREEMENT TO MAKE CONTRACT

ACCOUNTING ACADEMY - CA/CS/CWA 9422107444

AGREEMENTS OPPOSED TO PUBLIC POLICY

ACCOUNTING ACADEMY - CA/CS/CWA 9422107444

Rule AGREEMENTS IN RESTRAINT OF TRADE = VOID

ACCOUNTING ACADEMY - CA/CS/CWA 9422107444

ACCOUNTING ACADEMY - CA/CS/CWA 9422107444

ACCOUNTING ACADEMY - CA/CS/CWA 9422107444

CLASSIFICATION ACCORDING TO ENFORCEABILITY

RESTITUTION / PAYMENT / COMPENSATION

VALID CONTRACT : HAVING ALL ESSENTIALS OF SEC 10

OPPOSED TO PUBLIC POLICY

1. FORBIDDEN BY LAW 2. DEFEAT PROVISIONS OF ANY LAW 3. FRAUDULENT

4. INJURY TO PERSON OR PROPERTY

AGREEMENT WILL BE UNLAWFUL & VOID

UNLAWFUL / ILLEGAL AGREEMENT

ACCOUNTING ACADEMY - CA/CS/CWA 9422107444

IMPLIED / TACIT Contract

ACCOUNTING ACADEMY - CA/CS/CWA 9422107444

Exception to the rule

c. Devolution by operation of law

b. Principal can enforce contract entered into by Agent

ACCOUNTING ACADEMY - CA/CS/CWA 9422107444

There can be stranger to consideration BUT