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CONTRACT

the contract law

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anushkawalia2005
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© © All Rights Reserved
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6 views

CONTRACT

the contract law

Uploaded by

anushkawalia2005
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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CONTRACT

A contract means when two parties put into writing an


agreement which contain certain obligations (promises)
which are to be performed by such parties, when such
written agreement becomes enforceable by law it
becomes a contract.

Contract= agreement+ enforceability

Essentials of a valid contract


1) Offer or proposal
When one person shows his willingness to do or to abstain
from doing something with a view to obtain assent of the
other party is said to make the offer/proposal.
Ex- A shows his willingness to sell his radio set to B for
rupees 500. If B accept it, in the present situation A is
said to make the offer.

2) Acceptance/promise

When the person even the offer is made signifies his


assent thereto the offer/proposal is said to be accepted. •A
contract is created only after the offer is accepted.
3) Consideration

Something given for performance of promise from both


parties to the contract. For the performance of promise
there must be a consideration.

Δ All agreements are contract if they: -

1) Parties free consent


2) lawful consideration
3) lawful object
4) parties are competent
5) not expressly declared void

∞ ESSENTIALS OF OFFER

1) Offer must be communicated→ it means you made the


offeror known to the other person.
2) How is offer communicated→ an offer may be implied
offer or an express offer.
•Implied offer→ it is inferred from the conduct of
person making the offer.
•Express offer→ which is made by words of mouth on by
writing.

3) Communication when complete→ when it comes under


knowledge of the person(s) to whom it was made.
∞ ESSENTIALS OF OFFER

1) acceptance should be communicated free to the offeree


to the offeror.
2) acceptance should be absolute and qualified.
3) acceptance should be made in a reasonably manner.
4) acceptance should be made while the offer is still
subsisting.

∞Classification of contract
Valid contract→ An agreement enforceable by law is a valid
contract. According to section 10 a valid contract has
competent parties, free consent, lawful consideration, lawful
object, not expressly declared void by law.

Voidable Contract Void contract


• an agreement which is • a contract with seizes to
enforceable by law at the enforceable by law.
option of one party and not at
the option of other.
• these contracts are not • a void contract is not valid
void when it is made and it when it is made.
remains valid till it is
recended by aggrieved party.
• when the aggrieved party • a person who acquires goods
avoid the contract the other under a contract which has
party may not perform it. In not void would get a better
case the party avoiding the title to the goods if he has
contract has been benefited purchased goods in good faith
then it has to restore such and for consideration.
benefits to aggrieved party.

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