INDIAN CONTRACT ACT1872 HISTORY OF INDIAN CONTRACT 1872

INDIAN CONTRACT ACT-1872

HISTORY OF INDIAN CONTRACT - 1872 q. Enforced w. e. f. September 1, 1872. q. Applicable to whole of INDIA except J&K q. Concerned with rights in PERSONAM q. As distinguished from rights in REM

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. ”

COMPONENTS OF CONTRACT üAn Agreement It involves proposal or offer by one party and acceptance of the same by the other party. AGREEMENT = OFFER + ACCEPTANCE üEnforceable 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. Leading Case: BALFOUR V. BALFOUR CONTRACT = AGREEMENT+ENFORCEABILITY AT LAW

ELEMENTS OF A VALID CONTRACT Offer and acceptance Ø Intention to create legal relationship Ø Lawful consideration –QUID PRO-QUO Ø Capacity of parties (Sec. 11) § Minor § Persons of unsound mind § Persons disqualified by law to which they are subject Ø ØFree consent (Sec. 13) § Coercion § Fraud § Mistake ØLawful object § if forbidden by law § of such nature that any law Undue Influence Misrepresentation if permitted it would defeat the provisions of

Elements of a valid contract fraudulent § involves injury to person or property § Court regards it immoral or opposed to public policy § ØCertainity of meaning ØPossibility of performance ØNot declared to be void or illegal ØLegal formalities

CLASSIFICATION OF CONTRACTS ENFORCEABILITY FORMATION PERFORMANCE v. VALID CONTRACTS v. VOID CONTRACT v. VOID AGREEMENTS v. VOIDABLE CONTRACTS v. UNFORCEABLE CONTRACTS v. ILLEGAL CONTRACTS v. EXPRESS CONTRACTS v. IMPLIED CONTRACTS v. QUASI CONTRACTS v. EXECUTORY CONTRACTS v. EXECUTED CONTRACTS

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