Documente Academic
Documente Profesional
Documente Cultură
LAW OF
CONTRACT
Author:Prof Vishwanath
CONTENT
Business Law
Business law is a rule which helps us to regulate and manage our
business transactions and activities system. It has direct relation with trade,
industry and commerce. e.g. insurance act, contract act, tax act, sale of goods
act, agency actetc.
INDIAN CONTRACT ACT, 1872
Enacted by Parliament of India
Date enacted 25 April 1872
Date commenced 1 September 1872
Total sections 238
Extent All States of India except
the State of Jammu & Kashmir
“All contracts are agreements, But all agreements are not contracts.”
OFFER/PROPOSAL ACCEPTANCE PROMISE
Offer/Proposal sec 2(a) - 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 person either to such act or abstinence,
he is said to make aproposal.
Acceptance sec 2(b) - When the person to whom the proposal is made,
signifies his assent there to , the proposal is said to be accepted.
Promisor and promise sec 2(c) - When the proposal is accepted, the
person making the proposal is called as promisor and the person
accepting the proposal is called aspromisee.
PROMISE
AGREEMENT
CONSIDERATION
Consideration sec 2(d) - When at the desire of the promisor, the
promisee or any other person has done or abstained from doing
something or does or abstains from doing something or promises to do
or abstain from doing something, such act or abstinence or promise is
called a consideration for the promise.
Price paid by the one party for the promise of the other Technical word
meaning QUID-PRO-QUOi.e. something in return.
Agreement sec 2(e) - Every promise and set of promises forming the
consideration for eachother.
AGREEMENT ENFORCEABLEBYLAW CONTRACT
Possibility of performance
not valid
OFFER ACCEPTANCE • FRAUD SUBJECT
OBJECTIVE
Legal relationship • MISREPRESENTATION MATTER
• DURESS
• UNDUE INFLUENCE
• MUTUALMISTAKE
CONSIDERATION
CAPACITY
not valid
LEGAL BARGAINED •INFANTS WRITING
DETRIMENT/ FOR •MENTAL
LAWFUL •DRUNKARDS
•CORPORATIONS
TYPES OF CONTRACT
ON THE BASIS OF CREATION
Express Contracts: Where the terms of the contract are expressly agreed
upon in words (written or spoken) at the time of formation, the contract
is said to be expresscontract.
“All illegal agreements are void agreements but all void agreements are not
illegal.”
ON THE BASIS OF EXECUTION