DEFINITION AND MEANING  Salmond: ‘ A contract is an agreement. creating and defining the obligation between parties’ Sir Fredrick Pollock: ‘Every agreement enforceable at law is a contract’ Sec 2(h) of Indian Contract Act. 1872: ‘An agreement enforceable by law is a contract’   .

forming consideration for each other’ and According to Sec 2(6) ‘when the person to whom a proposal is made signifies his assent thereto. AGREEMENT according to Sec 2 (e) is defined as ‘ every promise and every set of promises.CONTRACT = AGREEMENT + ENFORCEABILITY where. A proposal when accepted becomes promise’ . the proposal is said to be accepted.

AGREEMENT ENFORCEABLE AT LAW UNENFORCEABLE AT LAW CONTRACTS NOT CONTRACTS *All agreements are not contracts but all contracts are agreements .

iv. iii. ii. v. SEC 10 OF INDIAN CONTRACT ACT:  i. All agreements are contractsif they are made: By free consent of parties Competent to contract For a lawful consideration With a lawful object Are not expressly declared void .

3. 2. Lawful offer and acceptance Intention to create legal relations Consensus ad idem Lawful consideration Competency of parties Free consent Lawful object Certainty of meaning Agreement not declared as void Possibility of performance Completion of legal formalities . 11. 4. 10. 5. 9. 7. 8.ESSENTIALS OF A VALID CONTRACT 1. 6.


ON THE BASIS OF VALIDITY    Valid contracts Void contracts Void agreements    Voidable contracts Unenforceable contracts Illegal or unlawful agreement .

ON THE BASIS OF ENFOCEABILITY    Expressed contracts Implied contracts Quasi contra .

ON THE BASIS OF PERFORMANCE     Executed contracts Executory contracts Bilateral contracts Unilateral contracts .

Sign up to vote on this title
UsefulNot useful

Master Your Semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master Your Semester with a Special Offer from Scribd & The New York Times

Cancel anytime.