Documentos de Académico
Documentos de Profesional
Documentos de Cultura
1872
Act lays down principles of
- formation,
- performance,
- enforceability
of contracts
AGREEMENT – S.2(e)
“Every promise and every set of promises
forming the consideration for each other”
PROMISE: S.2(b)
“When the person to whom the proposal is made
signifies his assent thereto, the proposal is said to be
accepted. A proposal when accepted becomes a
promise”
Acceptance
when the person to whom the proposal is
made signifies his assent thereto, the proposal
is said to be accepted.
In other words, acceptance is the
manifestation of the offeree of his consent to
the terms of the offer.
Legal Obligation
• Intention to create legal relationship
OBJECT
• Not disapproved by law
• Does not defeats any provision of law
• Where it is not fraudulent
• Not injurious to another person or
property
• Not immoral
• Not opposed to public policy
Agreement not declared Void
• Shouldn’t be vague
• Voidable Contract
• Void Contract
• Illegal Contract
• Unenforceable Contract
- Some elements are missing
Voidable Contract
• Affected by a flaw, say
misrepresentation, fraud, coercion,
undue-influence, mistake
• which may repudiated at the option
of of aggrieved party
• Till it is set aside, it remains valid
& binding
(patient-medical attdt-undue infl.)
Void Contract - S.2(i)
• An agreement not enforceable by either of
the parties to it, is void (restitution)
• Such agreement is w/o any legal effect ab-
initio (eg; engaging auditirium,destryed – fire before function)
• eg, contract with minor, mistake of fact,
unlawful object/consideration, w/o
consideration, restraint of
marriage/trade/legal proceedings,
uncertain /wagering/impossible agreements,
agreement to entering into agreement in
future
• Contract valid at formation, becoming void
later – subsequent impossibility/illegality
(fixd marge-sub.mad/consgn-forn. port-war)
Illegal Contract
Where object or consideration is:
Forbidden by law
Defeats provision of a law (Contract for wheat-Govt.
ordnanace-sale wheat only from fair price shop)
Fraudulent
Involves injury to person/property
Immoral under law
Opposed to public policy
Wagering agreement (in Mumbai)
(agreemnt div. of gains acqrd by fraud/promise-employt for payment)
(A bets with B, losses, reqst C 4 loan, C pays B/settles A’s loss. C cannot
recover from A)
Unenforceable Contract
• They are neither void or voidable
• Cannot be enforced in court as it lacks
some item of evidence such as writing,
registration or stamping
• Unstamped /under stamped, if stamp
required for merely revenue, defect can
be cured by affixing required
stamp/penalty.
• Uni-lateral
(pays bus fare-one party has fulfilled his part)
• Bi-lateral
(A contract is a contract from the time it is made & not from the time
of performance is due.Performance can be at the time contract is
made or it can be postponed either in full or part)
OFFER
Express Offer
Implied Offer
Specific Offer
General Offer
Mistake of Law
i) Mistake of the law of the land
ii) Mistake of foreign law
iii) Mistake of private right of the parties
Mistake of Fact
I) Bilateral mistake
II) Unilateral mistake
Mistake of Law
1. Mistake of law of land:
The rule is “ignorance of law is no excuse”
A contract is not voidable because it was caused by a mistake as to
any in force in India.
i) Existence
ii) Identity
iii) Title
iv) Quality
v) Quantity
vi) Price
1. Promisee
2. Legal Representative
3. Joint Promisee
4. Third Party
Persons bound to perform
1. By the Parties (S.37)
2. Promisor (S.40)
3. Representatives (S.37)
4. Agent (S.40)
5. Third Party (S.41)
i) By death
ii) By insolvency
iii) By merger
ii) Damages
a. Ordinary
b. Special
c. Vindictive /punitive/exemplary
d. nominal
Remedies for Breach of Contract
iii) Specific Performance:
Where damages is not a adequate remedy, court
may direct the party to breach to carry out his
promise
S.P not granted- a) Monetary compensation is adequate, b) Contract
of Personal nature – to marry, c) Contract beyond objects laid in
Mem. of Association
iv) Injunction:
A party to breach of negative terms of contract (party does something
which he is not supposed to do), Court may prohibit him from
doing so, through an order known as injunction
Remedies for Breach of Contract
v) Suit on ‘Quantum Meruit’:
Rule- A party which has not performed its promise to its entirety,
cannot claim performance from the other