PPT PRESENTATION ON THE INDAN CONTRACT ACT, ESSENTAL FOR VALD CNTRACT, QUASI ACT ANDREMEDIES FOR BREACH

OF CONTRACT

 Definition of a Contract Agreement that can be enforced in court. Formed by two or more parties. Failure to perform results in breach and damages.
Acc. to Sir William Anson Contract s legally binding agreement made b/w to or more person by which rights are acquired by one or more to acts or forbearamces on the part of other

AGREEMENT

A FOUNDATION STONE OF A CONTRACT AGREEMENT =OFFERS+ ACCEPTANCE

OBLIGATION

THE BENDING OF PERSON TO DO SOMETHING

ENFORCEABILITY

COURSE OF ACTION UPON A PERSON

0N THE BASIS OF FORMATION

EXPRESS CON.

IMPLIED CON.

QUASI CON.

ON THE BASIS OF PERFORMANCE

EXECUTED CON.

EXCUTORY CON.

Agreement Intention to create legal relationship. Legal formalities . Agreement not expressly declared void . Free Consent of the parties . Lawful consideration . Capacity of parties to contract . Certainty of meaning .

Essentials of offer: It must be an expression of the willingness to do or abstain from doing something. Such expression must be to another person. Such expression must be made with the intention to obtain the assent of the other person to such an act or abstinence.

Acceptance must be given only by the person to whom the offer is made. Must be absolute & unqualified. Must be in prescribed mode or reasonable manner. Must be communicated. Within reasonable time. Acceptance must succeed an offer. Rejected offers can be accepted only if renewed.

Usually of sound mind. Usually of unsound mind

Causes:
idiocy Lunacy Drunkenness Hypnotism Mental decay

Effects:

Void & inoperative Similar to agreements entered into by minors.

Alien enemies Foreign sovereigns & ambassadors Convicts Married women Insolvents

Coercion Undue influence Misrepresentation Fraud Mistake

Voidable The party exercising coercion exposes himself to criminal liability under the IPC, besides an action in contract. Burden of proof lies on the party who wants to set aside the contract on the plea of coercion.

A representation means a statement of fact made by one party to the other either before or at the time of contract, relating to some matter essential to the formation of the contract, with an intention to induce the other party to enter into a contract. It may be expressed by words spoken or written or implied from the acts or conduct of the parties. In law, a representation when wrongly made without an intention to deceive the other party is known as misrepresentation.

1. 2.

3. 4. 5.

Fraud means & includes any of the following acts committed by a party with an intention to deceive or induce the other party to enter into a contract: A false statement made intentionally is fraud Active concealment of a material fact by a person having knowledge of the fact is fraud. However, mere non-disclosure is not a fraud, if there is no duty to disclose. A promise made without an intention of performing it. Any cat or omission declared by law to be fraudulent. Any other act fitted to deceive.

Mere silence as to facts likely to affect the willingness of a person to enter into a contract is not fraud, unless: 1. Such a person is under a duty to speak or 2. Silence is in itself equivalent to speech.

Right to rescind the contract. Affirm the contract and ask for restitution, i.e., to be put in a position, he would have been, if the statement made had been true. The aggrieved party can also claim damages. Fraud by a stranger to the contract does not affect the contract.

Fraudulent statement must be instrumental in inducing the party to enter into a contract. The plaintiff must have been actually deceived by the fraudulent statement. No action will lie if the plaintiff does not sustain any loss or injury. The contract is not Voidable if the party had enough means at its disposal to discover the truth with ordinary diligence.

 1. 2.

Mistake of law: Mistake of law of the country. Mistake of foreign law. Mistake of fact: Bilateral mistake Unilateral mistake

1. 2.

Void No restitution.

Agreements in restraint of marriage Exception : an agreement restraining the marriage of a minor is valid. Agreements in restraint of trade any kind of restraint of trade, whether reasonable or not is void; however agreements restraining freedom of action necessary for carrying on a business are not void. Exception: Sale of goodwill (provided the restraint is reasonable in case of time & space), partners agreements, trade combinations, negative stipulation in service agreements.

This sec. shall not be deemed to render unlawful a subscription, or contribution, or an agmt. to subscribe or contribute, made or entered into for or toward any plate, prize or sum of money, of the value or amount of 500 rupees or upwards, to be awarded to the winner or winners of any horse race.

In case of quasi contracts there is no offer, acceptance or consensus; in fact there is no intention on the part of either parties to enter into a contract; still the law, from the conduct & relationship between the parties, implies a promise, imposing obligation on one party & conferring a right in favor of the other party. Thus under certain special circumstances, obligations resembling those created by a contract are imposed by law although the parties have never entered into a contract.

A claim for necessaries supplied to a person incapable of contracting A person who is interested in the payment of money (in order to protect his own interest), which another person is bound by law to pay, and who therefore pays it, is entitled to be reimbursed Obligation of person enjoying non-gratuitous act the act must have been done lawfully in good faith; the act must be non-gratuitous & the person for whom the act is done must have enjoyed benefit of the act.

Under a contract legal obligations are created, which both the parties to a contract are under a duty to fulfill. Fulfilling of such legal obligations, or performance of the promise under a contract by both the parties is known as performance of a contract. Performance of all the obligations arising out of a contract, by all the parties to a contract is the normal & natural mode of discharging a contract.

Only the promisee can demand performance of the promise under a contract, a third party cannot demand performance, even though it was made for his benefit. A contract involving personal skill, taste etc., must be performed by the promisor itself. Where it appears from the nature of the contract, that the parties intend that the promise of the contract should be performed by the promisor itself; then it must be performed by the promisor only.

Where a contract is of an impersonal nature, then either the promisor himself or his agent may perform the contract. Where death of the promisor occurs, before the performance of the contract, then in such case the liability of performance falls on his legal representatives; unless a contrary intention appears from the contract. Where a promisee accepts performance of the promise from a third person, however afterwards he cannot enforce it against the promisor.

Where several joint promisors with a single promisee. Where a single promisor makes a promise with several joint promisees. Where several joint promisors make a promise with several joint promisees .

Unless a contrary intention appears from the contract, the right to claim performance rests with all the promisees jointly & a single promisee cannot claim performance. Unless a contrary intention appears from the contract, all promisors must jointly fulfill the promise. In the absence of an express agmt. to the contrary, the promisee is entitled to compel any one or more of the joint promisors to perform the whole of the promise.

Where one of the joint owners is made to perform the whole contract, he may realize equal contribution from other joint promisors, unless a contrary intention appears from the contract. Where any one of the joint owners fails to make a contribution, then the remaining joint promisors must bear the loss arising from such failure, in equal shares. In case of a joint promise, if one of the joint promisors is released from his liability by the promisee, his liability to the promisee ceases, but this does not discharge the other promisors from their liability; neither does it free the joint promisor so released from his liability to contribute to the other joint promisors.

Assignment of contract means transfer of the rights & liabilities arising under a contract, to third party, with or without concurrence of the other party to the contract. An assignee can bring an action on his own initiative, against the other party, without making the assignor a party to the suit. Contracts involving personal skill, taste etc., cannot be assigned.

Where time & place is prescribed by the promisee, the performance of the contract must be at the specified time & place. Where it is not prescribed, then it must be within a reasonable time & at a proper place

The promise must be performed by the promisor in the manner prescribed by the promisee. Such performance must be in strict accordance with the mode prescribed.

If parties to a contract agree to alteration, novation or rescission , the original contract need not be performed. Where the parties to a contract agree to remit the performance of the promise, either wholly or in part, the original contract stands discharged. In case of a Voidable contract, if the party who has the option, chooses to rescind the contract, then the other party need not perform his promise.

Where there is neglect or refusal to provide the promisor with reasonable facilities for the performance of his promise, by the promisee; then in such a case the promisor is excused for the non-performance of the contract.

Discharge of a contract refers to a process, by which the rights and obligations arising out of a contract come to an end. Thus, discharge of a contract means termination of a contract. A contract may be discharged in any of the following ways:

Death: contracts involving personal skill or of a personal nature, stand discharged with the death of the promisor. Insolvency: when the insolvency court passes an order of discharge, the contract stands discharged. Merger: where an inferior right contract merges with a superior right contract, the former stands discharged automatically. Unauthorized material alteration: renders the contract void and hence it stands discharged.

Breach of contract brings an end to the obligations arising out of a contract, and hence the contract stands discharged. The aggrieved party can sue for damages. Breach of contract may be anticipatory or actual.

Rescission of contract Suit for damages Suit upon quantum meruit Suit for specific performance Suit for an injunction

THANKS
PRESENTED BY DINESH AND ANKITA OF BBA-II SECOND SEM.

QUARRY
IT,S YR TERM