Indian Contract Act

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Presentation Transcript

INDIAN CONTRACT ACT, 1872 : 

INDIAN CONTRACT ACT, 1872 Contract – Agreement + Enforceable by Law Agreement – Offer + Acceptance Social Agreement Legal agreement Consensus ad idem Obligation

ESSENTIAL ELEMENTS OF A VALID CONTRACT : 

ESSENTIAL ELEMENTS OF A VALID CONTRACT Offer and Acceptance Intention to create legal relationship Lawful consideration Capacity of parties Free and genuine consent Lawful object Agreement not declared void Certainty and possibility of performance Legal formalities

VALIDITY BASED CONTRACTS : 

VALIDITY BASED CONTRACTS Voidable contract Void agreement Void contract Illegal agreement Unenforceable contract

FORMATION BASED CONTRACTS : 

FORMATION BASED CONTRACTS Express Contract Implied contract Quasi-contract E-Commerce Contract

PERFORMANCE BASED CONTRACTS : 

PERFORMANCE BASED CONTRACTS Executed Contracts Executory Contracts Unilateral Contracts Bilateral Contracts

OFFER AND ACCEPTANCE : 

OFFER AND ACCEPTANCE Offer – Sec 2(a) Willingness to do or abstain from doing a particular act Intention to obtain assent from other party Parties to offer Offeror/Proposer/Promisor Offeree/Proposee Acceptor/Promisee Types of offer Express Implied Specific General – CARLILL VS. CARBOLIC SMOKE BALL COMPANY `

LEGAL RULES TO OFFER : 

LEGAL RULES TO OFFER Acceptable by Law & give rise to Legal relationships Terms of offer to be definite and unambiguous TAYLOR VS. PORTINGTON Offer to be distinguished from Declaration of intention and announcement HARRIS VS. NICKERSON An invitation to make an offer or do business PHARMACEUTICAL SOCIETY OF GREAT BRITAIN VS. BOOTS CASH CHEMISTS Offer must be communicated FITCH VS. SNEDAKER Offer must be made with an intention to get acceptance Offer should not be conditional – Non-compliance of a condition should not be assumed as acceptance Mere statement of price is not an offer HARVEY VS. FACEY

TENDER : 

TENDER Response to an invitation to offer Definite offer Standing offer GREAT NORTHERN RAIL VS. WITHAM CROSS OFFER Identical offers by two parties to each other Ignorance of each other’s offer Not treated as offer by court

SPECIAL TERMS IN A CONTRACT : 

SPECIAL TERMS IN A CONTRACT Offeree must be notified To be brought in before signing the contract Conditions to be clear and explicit Conditions on rear side of ticket PARKER VS. S.E. RAILWAY CO. Acceptance of terms and conditions Misrepresentation Insufficient notice

ACCEPTANCE : 

ACCEPTANCE Assent to an offer Express acceptance Implied acceptance Acceptance of Particular offer Acceptance of General offer

LEGAL RULES OF ACCEPTANCE : 

LEGAL RULES OF ACCEPTANCE Absolute and unqualified Communication to offeror To be by prescribed mode or usual and reasonable mode To be given within reasonable time Should not precede an offer Intention to fulfill promise Must be given to offeror Must be given before offer lapses Cannot be implied by silence

Slide 13: 

Acceptance s.t. contract Agreement to agree in future Revocation Rules to revocation

Communication of offer, acceptance or revocation Sec 3,4,5 : 

Communication of offer, acceptance or revocation Sec 3,4,5 Express or implied communication When face to face When at distance Communication of offer Communication of acceptance Communication of revocation Loss of letter of acceptance in post Contracts over telephone or telex

End of an offer : 

End of an offer Communication of revocation to offeree Lapse of time Non-fulfillment of condition precedent to acceptance Death or insanity of offeror Counter-offer Acceptance not as per prescribed mode Law is changed and new law makes it illegal