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1. INDIAN CONTRACTINDIAN CONTRACT
ACT-1872ACT-1872

2. HISTORY OF INDIAN CONTRACTHISTORY OF INDIAN CONTRACT
ACT - 1872ACT - 1872
Enforced w.e.f. September 1, 1872.Enforced w.e.f. September 1, 1872.
Applicable to whole of INDIA exceptApplicable to whole of INDIA except
J&KJ&K
Concerned withConcerned with rights inrights in PERSONAMPERSONAM
As distinguished fromAs distinguished from rights inrights in REMREM

3. A CONTRACT is an agreement creating and defining
obligations between the parties
According to HALSBURY, it is, “an agreement between two
or more persons which is intended to be enforceable at law &
is constituted by the acceptance by one party of an offer
made to him by the other party to do or to abstain from doing
some act.”

4. COMPONENTS OF CONTRACTCOMPONENTS OF CONTRACT
An Agreement
It involves proposal or offer by one party and acceptance of the
same by the other party.
AGREEMENT = OFFER + ACCEPTANCE
Enforceable at law
An agreement to become a contract must give rise to legal
obligations. It must create legal relations and not merely social
or domestic relations.
CONTRACT = AGREEMENT+ENFORCEABILITY AT LAW
Leading Case: BALFOUR V. BALFOUR

5. ELEMENTS OF A VALID CONTRACTELEMENTS OF A VALID CONTRACT
 Offer and acceptanceOffer and acceptance
 Intention to create legal relationshipIntention to create legal relationship
 Lawful consideration –QUID PRO-QUOLawful consideration –QUID PRO-QUO
 Capacity of parties (Sec. 11)Capacity of parties (Sec. 11)
 MinorMinor
 Persons of unsound mindPersons of unsound mind
 Persons disqualified by law to which they are subjectPersons disqualified by law to which they are subject
Free consent (Sec. 13)Free consent (Sec. 13)
 Coercion Undue InfluenceCoercion Undue Influence
 Fraud MisrepresentationFraud Misrepresentation
 MistakeMistake
Lawful objectLawful object
 if forbidden by lawif forbidden by law
 of such nature that if permitted it would defeat the provisions ofof such nature that if permitted it would defeat the provisions of
any lawany law

6. Elements of a validElements of a valid
contractcontract
 fraudulentfraudulent
 involves injury to person or propertyinvolves injury to person or property
 Court regards it immoral or opposed to public policyCourt regards it immoral or opposed to public policy
Certainity of meaningCertainity of meaning
Possibility of performancePossibility of performance
Not declared to be void or illegalNot declared to be void or illegal
Legal formalitiesLegal formalities

7. CLASSIFICATION OF CONTRACTS
VALID CONTRACTS
VOID CONTRACT
VOID AGREEMENTS
VOIDABLE CONTRACTS
UNFORCEABLE CONTRACTS
ILLEGAL CONTRACTS
EXECUTORY CONTRACTS
EXECUTED CONTRACTS
EXPRESS CONTRACTS
IMPLIED CONTRACTS
QUASI CONTRACTS
ENFORCEABILITY PERFORMANCEFORMATION

8. THANK YOUTHANK YOU