INDIAN CONTRACT ACT-1872

HISTORY OF INDIAN CONTRACT ACT - 1872

Enforced

w.e.f. September 1, 1872. Applicable to whole of INDIA except J&K Concerned with rights in PERSONAM 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
An Agreement It involves proposal or offer by one party and acceptance of the same by the other party.

AGREEMENT = OFFER + ACCEPTANCE

Enforceable 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 Intention to create legal relationship Lawful consideration QUID PRO-QUO Capacity of parties (Sec. 11) Minor Persons of unsound mind Persons disqualified by law to which they are subject

Free consent (Sec. 13)

Coercion Fraud Mistake

Undue Influence Misrepresentation

Lawful

object if forbidden by law of such nature that if permitted it would defeat the provisions of any law

Elements of a valid contract

fraudulent involves injury to person or property Court regards it immoral or opposed to public policy

Certainity of meaning Possibility of performance Not declared to be void or illegal Legal formalities

CLASSIFICATION OF CONTRACTS

ENFORCEABILITY
VALID CONTRACTS VOID CONTRACT VOID AGREEMENTS VOIDABLE CONTRACTS UNFORCEABLE CONTRACTS ILLEGAL CONTRACTS

FORMATION
EXPRESS CONTRACTS IMPLIED CONTRACTS QUASI CONTRACTS

PERFORMANCE
EXECUTORY CONTRACTS EXECUTED CONTRACTS

THANK YOU Any Queries!!!!!