contract act

2. Def – Law means rule made by authority for
the proper regulation of a community or
society or for correct conduct in life.

3.  Mercantile law
 Constitutional law
 Criminal law
 Civil law
 International law
 Hotel law

4.  Law of contract
 Indian partnership act
 Sale of goods act

5.  Labour law
 Industrial dispute act
 Trade Unions act

6.  Payment of minimum wages
 Payment of wages
 Safety rules & regulations

7.  Law of tenancy
 Licenses
 Food Legislation

8.  Concept of ethics
 Ethical behavior
 Ethical dilemma in organization
 Ethics in different management practices
 Corruption & ethics

9.  General principles of the law of contract
 Specific kinds of contract

10. “ An agreement enforceable by law is an contract”
1. An agreement
2. Legal obligation
Agreement- “ Every promise and every set of
promises forming the consideration for each
other, is an agreement”.
Promise- “ A proposal when accepted, becomes a
promise”
An agreement, therefore comes into existence
when one party makes a proposal or offer to
other party and the other party signifies his
assent

11. Plurality of persons- there must be two or
more persons to make an agreement
Consensus-ad-item- both the parties to an
agreement must agree on the subject matter
of the agreement in the same sense and at
the same time.
2. Legal obligation- An agreement to become a
contract must give rise to a legal obligation
i.e. duty enforceable by law

12.  Offer & acceptance
 Intention to create legal relations
 Lawful considerations
 Capacity of parties
 Free consent
 Lawful object
 Writing & registration
 Certainty
 Possibility of performance
 Not expressly declared void

13. There must be „lawful offer‟ and a „lawful
acceptance‟

14. There must be an intention among the parties
that the arrangement should be attached by
legal consequences & create legal obligations

15. Consideration can be defined as the price paid
by one party for the promise of the other. An
agreement is legally enforceable only when
each of the parties to it gives something &
gets something

16. The parties to an agreement must be
competent to contract, otherwise it cannot
be enforce by a court of law. In order to be
competent to contract the parties must be of
the age of majority and of sound mind and
must not be disqualified from contacting by
any law to which they are subject.

17. Consent means that the parties must have
agreed upon the same thing in the same
sense, if the agreement is inducted by (i)
coercion, (ii) undue influence (iii) fraud, (iv)
misinterpretation, (v) mistake then it is a
void contract.

18. For the formation of a valid contract it is also
necessary that the parties to an agreement
must agree for a lawful object

19. According to the Indian Contract act, a
contract may be oral or in writing . But in
certain special cases it lays down that the
agreement, to be valid, must be in writing
or/ and registered

20. Agreements , the meaning of which is not
certain or capable of being made certain, are
void.

21. If an act is impossible in itself, physically or
legally, the agreement cannot be enforced by
law.

22. The agreement must not have been expressly
declared to be void under the Act.

23. From the point of view of enforceability
 Valid contract
 Voidable contract
 Void contract
 Unenforceable contract
 Illegal or unlawful contract

24. A valid contract is an agreement enforceable
by law when all the essential elements of a
valid contract are present

25. Usually a contract becomes voidable when the
consent of one of the parties to the contract
is obtained by coercion, undue
influence, misinterpretation or fraud

26. It implies a useless contract which has no legal
effect at all. A contract which ceases to be
enforceable by law becomes void, when it
ceases to be enforceable.
Reasons for a void contract are:
 Supervening impossibility
 Subsequent illegality
 Repudiation of a voidable contract
 In the case of a contract contingent on the
happening of an uncertain future event, if
that event becomes impossible

27. One which is valid in itself, but is not capable
of being enforced in a court of law because
of technical defect such as absence of
writing, registration, requisite stamp, etc or
time barred by the law of limitation.

28. It is a contract that has an illegal agreement

29. From the point of view of mode of creation
 Express contract
 Implied contract
 Constructive or quasi contract

30. Where both the offer and acceptance
constituting an agreement enforceable at
law are made in words spoken or written

31. Where both the offer and acceptance
constituting an agreement enforceable at
law are made otherwise than in words, i.e by
acts and conduct of the parties, it is an
implied contract

32. A contract that does not arise by virtue of any
agreement, express or implied between the
parties but the law infers or recognizes a
contract under special circumstaances

33. From the point of view of the extent of
execution
 Executed contract
 Executory contract

34. A contract is said to be executed when both
the parties to a contract have completely
performed their share of obligation and
nothing remains to be done by either party
under the contract

35. A contract is said to be executory when either
both the parties to a contract still have to
perform their share of obligation or there
remains something to be done under the
contract on both sides

36.  “An agreement enforceable by law is an
contract”. Discuss the definition
 “All contracts are agreements, but all
agreements are not contracts”. Discuss
 Discuss the essential elements of a valid contract
 What do you understand by the terms „void‟ and
„voidable‟ contracts.
 Distinguish between:
a) Void and voidable contract
b) Implied contract and quasi contract
c) Executed contract and bilateral contract