Contract PPT 1 1

UNIVERSITY INSTITUTE OF LEGAL
STUDIES
DEPARTMENT OF LAW
Subject Name and Code: LAW OF CONTRACT
(LLT-122/LLT-106)
SUKHWINDER SINGH, ASST. PROF.
INTRODUCTION TO ICA, 1872 DISCOVER . LEARN . EMPOWER

Font size 24
• Space for visual (size 24)
INDIAN
CONTRACT
ACT, 1872
Course Outcome
CO Title Level
Number
CO1 To explain the legal terminology used in the area of Remember
contract law and provisions of contract
CO2 To apply the basic concepts of contract law to hypothet- Understand
ical situation
Will be covered in this

lecture
2
• Space for visual (size 24)
MEANING AND
NATURE OF
CONTRACT
• An agreement enforceable by law.”

• Contract =Agreement + enforceability by law.
• Agreement must create a legal obligation or
duty.
3
OBJECTIVE OF INDIAN CONTRACT
ACT, 1872
• The objective of the Contract Act is to ensure that:
 the rights and obligations arising out of a contract are honoured and
 the legal remedies are made available to an aggrieved party against the party failing to honour his part of agreement.
• The Indian Contract Act makes it obligatory that this is done and compels the defaulters to honour their commitments.
4
Extent, commencement and overview
• It extends to the whole of India except the State of Jammu and Kashmir.
• It came into force on the first day of September, 1872.
• The sale of Goods was repealed from this Indian Contract Act in 1930. Contracts relating to partnership were
repealed in 1932.
The Indian Contract Act, 1872, can be studied under the following parts:
 Basic Principles of Contract (Sections 1 to 75).
 Indemnity and Guarantee (Sections 124 to 147).
 Bailment (Sections 148 to 181).
 Agency (Sections 182 to 238)

5
Some Important terms used in Enactment
• Proposal: When one person signifies to another his willingness to do or to abstain from doing anything, with a view to
obtaining the assent of the other to such act or abstinence, he said to make a proposal.
• Promise: When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A
proposal when accepted, becomes a promise. The person making the proposal is called the “Promisor” and the person
accepting the proposal is called the “Promisee”.
• Consideration: When at the desire of the promisor, the promise or any other person has done or abstained from doing, or
does or abstains from doing, or promises to do or to abstain from doing something, such act or abstinence or promise is
called a consideration for the promise.
• Agreement: Every promise and every set of promises, forming the consideration for each other is an agreement. An
agreement not enforceable by law is said to be void.
• Contract: An agreement enforceable by law is a contract.

6
Steps Involved in Contract
• Proposal and its communication.
• Acceptance of proposal and its communication.
• Agreement by mutual promises.
• Contract.
• Performance of Contract.
7
Essentials of a Valid Contract
• Offer and its acceptance.
• Free consent of both parties.
• Mutual and lawful consideration for agreement.
• It should be enforceable by law. Hence, intention should be to create legal relationship. Agreements of social or domestic
nature are not contracts.
• Parties should be competent to contract.
• Object should be lawful.
• Certainty and possibility of performance.
• Contract should not have been declared as void under Contract Act or any other law.
8
Assessment Pattern
• Discuss the essentials of a Valid Contract.
• Discuss the history, development and objective of Indian Contract Act,

1872.
9
Applications
• Students will be able to appreciate the transactions and agreements, they make in their day to day
living.
• Students will be able to avail and guide people to claim remedies in case of non-fulfillment of the
conditions by any party to the contract.
10
REFERENCES (size:44)
• Indian Contract Act, 1872, BARE ACT
• Law of Contract, by Dr. Avtar Singh
• Law of Contract, by Dr. R.K. Bangia
• Law of Contract by Mulla
11
THANK YOU
For queries
Email: [email protected]

Contract PPT 1 1

Uploaded by

Copyright:

Available Formats

Contract PPT 1 1

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Contract PPT 1 1

Uploaded by

Copyright:

Available Formats

UNIVERSITY INSTITUTE OF LEGAL

INTRODUCTION TO ICA, 1872 DISCOVER . LEARN . EMPOWER

Will be covered in this

• An agreement enforceable by law.”

• The objective of the Contract Act is to ensure that:

• It came into force on the first day of September, 1872.

 Basic Principles of Contract (Sections 1 to 75).

 Indemnity and Guarantee (Sections 124 to 147).

 Bailment (Sections 148 to 181).

 Agency (Sections 182 to 238)

• Contract: An agreement enforceable by law is a contract.

• Proposal and its communication.

• Acceptance of proposal and its communication.

• Agreement by mutual promises.

• Free consent of both parties.

• Mutual and lawful consideration for agreement.

• Parties should be competent to contract.

• Object should be lawful.

• Certainty and possibility of performance.

• Discuss the essentials of a Valid Contract.

• Discuss the history, development and objective of Indian Contract Act,

You might also like