CPT LAW : EXAM REVIEWER
CHAPTE -1 :INDIAN CONTRACT ACT, 1872
Indian contract Act, 1872 came into force on 1
It applies to whole of India except the state of J & K.
The provisions related to contracts are contained in Indian Contract Act, 1872.
The provisions related to sale of goods wee originally contained in Indian contract act, 1872.
The provision related to sale of goods are contained in the Sale of Goods Act, 1930.
The Sale of Goods Act came into force on 1
Indian Partnership Act come into force on 1
The provisions related to partnership are contained in Indian partnership Act, 1932.
Contract [Sec.2(h)] An agreement enforceable by law.
Agreement [Sec 2(e)] Every promise & every set of premises forming consideration for each other.
Promise, [Sec2 (b)] A proposal when accepted becomes a promise.
An agreement is an accepted proposal.
Consideration, Quid pro quo i.e., something in return.
Enforceability by law Agreements which creates legal obligation on the part of parties.
[Balfour Vs. Balfour]15.
Essential elements of a valid contract [Section 10]
All agreements are contracts if they are made by
Free consent of the parties
Competent to the contract for
A lawful consideration & with
A lawful object & are
Not hereby expressly declared to be void.
Intention to create legal relationship
Certainty of meaning (e.g. Oil)
Possibility of performance
Types of Contracts
A contract which does not content all the essential elements.
Void Contract [Sec2(j)]
A contract which ceases to be enforceable by law becomes voidwhen it ceases to be so enforceable. It is a contract which is valid in the beginning but lateron due to some reasons it becomes void.
Void Agreement [Sec 2(g)
– An agreement not enforceable by law. It is voide-ab-initio ie.,void from the very beginning when it is made.
Voidable contract [Sec 2(i)]
– A contract which is enforceable by law at the option of oneparty but not at the option of others. Here, only one party can go to the court of law, otherparty cannot go to the court of law.
– An agreement the consideration of object of which is unlawful [Sec. 23]
All illegal agreements are void, but all void agreements are not necessarily illegal.
Collateral transactions to an illegal agreement are void.
Collateral transactions to a void agreement (not illegal) are not affected.
– It is one which is good in substance but due to some technicaldefect such as absence in writing, signing one or more parties cannot see upon it.
– Obligation is pending on the part of one of the parties to the contract.
– obligation is pending on the parties of both of the parties to thecontract.
– A contract which is completed where parties to the contract haveperformed their respective obligations.