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LAW
WHAT IS LAW
Law in simple words mean the body of rules
whether proceeding from formal enactment or
from customs, which a particular state or
community recognize as binding on its subjects or
members.
IMPORTANT ELEMENTS OR
CHARACTERISTICS OF LAW
Law is a body of rules
Law is imposed
The State
Content of Law
Purpose
Criminal Law
Civil Law
International Law
Municipal Law
SOURCES OF LAW
Primary Source
Customs
Judicial Precedents
Statue
Personal Law
Secondary Source
English Law
Plurality
of person(two or more)
Consensus ad idem
TYPES OF AGREEMENT
Social Agreement
Legal Agreement
ESSENTIAL ELEMENTS OF A
VALID CONTRACT
Offer & Acceptance
Intention to create legal relationship
Lawful consideration
Capacity of parties- competency
Free and genuine consent
Lawful object
Agreement not declared void
Certainty
Possibility of performance
Legal formalities
OFFER
Prposal and offer are synonymous and are used
interchangeably. Section 2(a) defines prposal as
“ when one person signifies to another his
willingness to do or to abstain from doing
anything, with a view to obtaining the assent of
that other to such act or abstinence”
The person making the offer is known as the
offeror, proposer or promisor and the person to
whom it is made is called offeree or prposee.
When the offeree accepts the offer he is called
the acceptor or promisee.Section 2(c)
HOW AN OFFER IS MADE ?
An offer may be made by express words, spoken or
written. This is known as express offer.
Charitable subscription
CAPACITY TO CONTRACT
The parties who enter into a contract must have the capacity to do
so. ‘Capacity’ here means competence of the parties to enter into a
valid contract.
According to Section 10, an agreement becomes a contract if it is
entered into between the parties who are competent to contract.
According to Section 11, every person is competent to contract
who (a) is of the age of majority according to the law to which he
is subject, (b) is of sound mind, and (c) is not disqualified from
contracting by any law to which he is subject.
Thus section 11 declares the following persons to be incompetent
to contract:
a. Minors
b. Persons of unsound mind
c. Persons disqualified by any law to which they are subject.
MINORS
According to Section 3 of the Indian Majority Act,
1875, a minor is a person who has not completed 18
years of age.
In the following two cases, he attains majority after 21
years of age:
a) Where a guardian of a minor’s person or property has
been appointed under the Guardian’s and Ward Act,
1890, or
b) Where the superintendence of a minor’s property is
assumed by a Court of Wards.
MINOR’S AGREEMENT
An agreement with or by a minor is void and inoperative ab initio
He can be a promisee or a beneficiary.
His agreement cannot be ratified by him on attaining the age of majority
If he has received any benefit under a void agreement, he cannot be
asked to compensate or pay for it
He can always plead minority
There can be no specific performance of the agreements entered into by
him as they are void ab initio
He cannot enter into a contract of partnership
He cannot be adjusted insolvent
He is liable for ‘necessaries’ supplied or necessary services
He can be an agent.
His parents/guardian are/is not liable for the contract entered into by him
A minor is liable in tort (a civil wrong)
PERSONS OF UNSOUND MIND
A personis said to be of sound mind for the purpose of
making a contract if, at the time when he makes it, he is
capable of understanding it and of forming a rational
judgment as to its effect upon his interests.
Idiots
Foreign sovereigns
Corporations
Insolvents
Convicts
FREE CONSENT
Consent means acquiescence or act of assenting to an
offer. Two or more persons are said to consent when
they agree upon the same thing in the same sense.’
(Sec 13)
Free Consent is consent said to be free when it is not
caused by-
A. Coercion (Sec 15)
SECTION 15 16
SECTION 17 18
SECTION 22 20
ILLEGAL
AGREEMENTS OPPOSED TO
PUBLIC POLICY
An agreement is said to be opposed to public policy when it is
harmful to the public welfare. Public policy is that principle of
law which holds that no subject can lawfully do that which has a
mischievous tendency to be injurious to the interests of the
public, or which is against the public good or public welfare.
Some of the agreements are as follows:
5. Stifling prosecution.
Legal representatives
Third persons
Joint promisors
DISCHARGE OF CONTRACT
Discharge of contract means termination of the
contractual relationship between the parties. A
contract is said to be discharged when it ceases to
operate, i.e., the rights and obligations created by it
comes to an end.
Discharge of Contract
By By agreement or By impossibility By By operation of By breach of
performance consent of performance lapse law contract
1. Actual 1. By express 1. Known to of time 1. Death
2. Attempted consent parties 2. Merger
2. By implied 2. Unknown to 3. Insolvency
consent parties 4. Unauthori
sed
a) Novation 3. Supervening
alteration
b) Rescission impossibility of terms of
c) Alteration contract
d) Remission 5. Rights and
e) Waiver liabilities
f) merger vesting in
the same
An excuse Not on excuse person
a) Destruction of a) Difficulty of
subject-matter performance
b) Non-existence of b) Commercial
a state of things impossibility Actual Anticipatory
c) Death or c) Faliure of third party 1. At the time of the 1. By an act of the promisor
d) Strikes, lock-outs and performance making performance
incapacity for
civil disturbance 2. During the impossible, i.e., implied
personal services
e) Failure of one of the repudiation
d) Change of law performance
object 2. By renunciation of the
e) Outbreak of law obligation, i.e., express
repudiation
REMEDIES FOR BREACH
OF CONTRACT
When a contract is broken, the injured party (i.e., the
party who is not in breach) has one or more of the
following remedies:
Rescission of the contract
Nominal damages
Mitigation of damages
Difficulty of assessment
Cost of decree
By Notice
By Death of Surety
By Other Modes :-
1) By Novation, (Section 62)
2) By Variance in the terms of contract, (Section 133)
3) By Release or Discharge of the Principle Debtor, (Section
134)
4) By Compounding with the Principle Debtor ( Section 135)
5) By Creditor’s Act or Omission impairing surety’s eventual
remedy, (Section 139)
6) By Loss of Security(Section 141)
BASISBBBBBB
BASIS CONTRACT OF CONTRACT OF
INDEMNITY GURANTEE
SECTION 124 126
NUMBER OF 2 3
PARTIES
NUMBER OF 1 3
CONTRACT
Delivery of possession
For some purpose
Disposal
CLASSIFICATION OF
BAILMENTS
For the exclusive benefit of the bailor, as the
delivery of some valuables to a neighbour for sale
custody, without charge.
For the exclusive benefit of the bailee, as the lending
of a bicycle to a friend for this use, without charge.
For the mutual benefit of the bailor and the bailee, as
the hiring of a bicycle or giving of a watch for
repair. In these cases, consideration passes between
the bailor and the bailee.
CLASSIFICATION
Gratuitous Non-Gratuitous
Bailment Bailment
DUTIES OF BAILOR
1) To disclose known faults.
2) To bear extra-ordinary expenses of bailment.
3) To indemnify bailee for loss in case of
premature termination of gratuitous bailment.
4) To receive back the goods.
5) To indemnify the bailee.
DUTIES OF BAILEE
1) To take reasonable care of the goods bailed.
(Section 151 – 152)
2) Not to make any unauthorized use of goods.
(Section 154)
3) Not to mix the goods bailed with his own
goods. (Section 155 – 157)
4) Not to set up an adverse title. (Section 117)
5) To return any accretion to the goods. (Section
163)
6) To return the goods. (Section 160 – 161)
RIGHTS OF BAILOR
Enforcement of rights
Avoidance of Contract (Section 153)
Bailee’s lien
LIEN
Lien means the right of a person to retain possession
of some goods belonging to another until some debt
or claim of the person in possession is satisfied. It
appertains to the person who has possession of the
goods which belong to another, entitling him to
retain them until the debt due to him has been paid.
Possession is essential for exercising the right of lien
and in order to create a lien the possession must be
a) Rightful
c) Continuous
TYPES OF LIEN
RULES OF AGENCY
Whatever a person can do personally, he can do
through an agent.
He who does an act through another does it by itself
(qui facit per alium facit per se)
CREATION OF AGENCY
The relationship of principal and agent may arise-
1. By express agreement
2. By implied agreement
3. By ratification
4. By operation of law
CLASSIFICATION OF
CONTRACTS IN ENGLISH LAW
FORMAL SIMPLE
CONTRACTS CONTRACTS
CONTRACTS UNDER
SEAL
CONTRACTS OF
RECORD
CLASSIFICATION OF CONTRACTS
UNENFORCEA
E-COMMERCE BILATERAL
BLE
CONTRACT CONTRACT
CONTRACT
MATTER VOID CONTRACT VOIDABLE CONTRACT
SECTION
SECTION