INDIAN CONTRACT 1872 Contract Pollock defined contract as

INDIAN CONTRACT 1872

Contract • Pollock defined contract as , “Every agreement & promise enforceable by law is contract” • Section 2 (h) of Contract Act 1872 “ an agreement enforceable by law is contract” • Contract = An Agreement + Enforceability • Case: Two parties from Srinagar entered in to contract on 1 Jan 2016 as per ICA. Can it be enforced?

Agreement • Agreement : Section 2(e), An Agreement means a promise and a reciprocal set of promises forming consideration for each other • Agreement = Promise + Reciprocal Promise + Consideration

Proposal • Section 2(a) “when one person signifies another person his willingness to do or abstain from doing anything with a view to obtaining the assent of that other to such an act or abstinence”. Proposal is also known as offer

Promise • Section 2(b) , A proposal when accepted becomes a promise • Promise = Proposal by one person (offer) + accepted by another person

Essential Elements of Valid Contract (Section 10) • • • Offer & Acceptance Intention to Create Legal Relation Lawful consideration Free consent Lawful Object Capacity of Parties Certainty of Meaning (Meeting of Minds) Possibility to Perform Legal Formalities Agreement must not be expressly declared Void or illegal

Types of Contracts Mode of Formation Performance Enforceability Express Contract Executed Contract Valid Contract Implied Contract Executory Contract Void Contract Quasi Contract Unilateral Contract Voidable Contract E- Contract Bilateral Contract Illegal Agreement

Some Landmark Cases for Discussion: • Balfour Vs Balfour (1919) • Punjab national bank Vs Arura Lal Durga Das (1960) • Taylor Vs Porting

Offer(Proposal) & its essential elements • Offer: Section 2(a) “when one person signifies another person his willingness to do or abstain from doing anything with a view to obtaining the assent of that other to such an act or abstinence”

Essential Elements of an Offer • • • Two Parties Communication Willingness With Intention to obtain Assent Offer Can be Positive or Negative

Types of Offers • • • Express Offer Implied offer Specific Offer General Offer Cross Offer Continuous Offer

Lapse of Offer • Notice of Withdrawal • Lapse of Time • Non-fulfillment of Condition attached with Offer • Counter offer • Death or Insanity of an offeror or offeree • Rejection of an offer by the offeree • By change in provisions of Act or Law

Landmark Cases • Banwarilal vs Sukhdarshan Dayal (1973) • Felthouse Vs Bindley (1863) • Sharad Trading Co. Vs State (1980) • Khawaja Muhammad Vs Hussaini Begam (1910)