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On the basis of : 2. Enforceability 3. Mode of creation 4. Extent of execution 5. English law
: “an agreement not enforceable by law is said to be void” Void ab-initio Absence of one or more essential elements of valid contract but ‘free consent ‘ Agreements expressly declared void
Sec.65 calls for restitution of benefits received from void contract
Restitution is allowed in the following circumstances 1.Agreement caused by bilateral mistake of essential facts 2.Minor committing fraud by misrepresenting his age 3.In case of valid contracts
Which cannot be enforced in the court of law because of : b) Technical Defects: Absence of writing c) The remedy has been barred by Lapse of Time *
in the event of repudiation of such contract, the aggrieved party wil not be entitled to legal remedies
policy Is forbidden by law Criminal in nature Fraudulent Immoral Involves or implies injury to the person or property of another
transgress some rules of basic public
My dear friend Vijay borrows Rs.50000 from Anil and enters into a agreement with Lashkar e Taiba to import 20 ‘A K -47 ‘ Anil knows the purpose of loan . Later Vijay refused to pay the money …. What can Anil do !!!!
An illegal agreement even taints the collateral agreements with illegality .
Classification according to Formation/Mode of Creation
the terms of the contract are expressly agreed upon (whether by words spoken or written )at the time of formation of contract Sec(9):where the offer and acceptance of any promise is made in words,the promise is said to be express.
the proposal or acceptance of any promise is made otherwise than in words, the promise is said to be implied implied contract is one which is inferred from the acts or conducts of the parties or course of dealings between them
into bus Takes a meal in the restaurant Coolie
These contracts does not arise by the virtue of any agreement, Expressed or implied between the parties but the law infers or recognizes a contract under certain special circumstances
It is the contract created by law It imposes a legal obligation on a party who is required to perform it. “A person should not be allowed to enrich himself unjustly at the expenses of another”.
Mr.Sabhilash a big businessman in vizag ,supplies goods to his customer Mr.Adi...who consumes them….. Will Adi pay for the goods ?
In the above case Sabhilash’s partner Mr.Raju delivers the goods to Mr.Ravi mistaking Ravi for Adi… Do ravi need to pay for the goods consumed?
Classification according to Performance /Extent of execution
Contract where both the parties have completely performed their respective Obligations
Gabbar singh is a renowned dacoit in Prakasham dist.govt has announced a cash prize of Rs.50,000 to a person who catches him live of dead . Mr.Rambabu a brave man catches Gabbar singh and hands him over to police …. Is the contract said to be executed ?
Contract in which both the obligations are Outstanding.
Partly executed and Partly executory
Contract where only one obligation remains outstanding, the other obligation having being performed at the time of or before the formation of the contract
At the time of formation of contract the obligation on the part of both the parties to the contract are outstanding
CLASSIFICATION OF CONTRACT IN ENGLISH LAW
CONTRACTS OF RECORDS
CONTRACTS UNDER SEAL
Contracts of Records
A contract of record is either a judgment of court or Recognizance
is a written acknowledgement of debt due to the Crown.It is usually met with in connection with criminal proceedings
of records derive their binding force from the authority of the court. They lack the essential element consensus.
They are enforced by court
Contracts Under seal
It derives its binding force from its form alone. It is in writing and is signed,sealed and delivered by the parties. It is also called as deed or specialty contracts.
Contracts under seal
Contracts which must be made under seal , includes 2. Contracts made without consideration 3. Contract made by corporations 4. Conveyance in legal estate of land or any interest in land ,including leases of land for more than 3 years . 5. A transfer of a british ship or any share therein
All contracts which are not made under seal are simple contracts All contracts under Indian law must be supported by consideration
OFFER AND ACCEPTANCE
Offer : definite Acceptance : unconditional
Sec2(a):A person is said to have made a proposal when he “signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining his assent of that other to such act or abstinence”.
Sec2(c):when the offeree accepts the offer, he is called the acceptor or Promisee
1.EXPRESS 2.IMPLIED 3.SPECIFIC 4.GENERAL
My Dear intelligent students …..I DON’T BELIVE IN REPEATING……PLEASE USE YOUR BRAIN AND ANSWER
My Dear intelligent students …..I DON’T BELIVE IN REPEATING……PLEASE USE YOUR BRAIN AND ANSWER ALSO GIVE EXAMPLES …
Offer made to a definite person, it can be accepted only by that person to whome it is made
When the offer is made to the world at large. Ex: Sach ka samna Ex: Information about thief's Ex: finding lost goods/things
*acceptance can be made only by the first person who gives the information
What constitutes an offer
1. 2. 3. 4.
Intention to be bound by it View to obtain the assent of offeree Definiteness Communication to offeree
Legal rules as to offer
A valid offer must be in conformity with the following rules: 1.An offer must be ‘express’ or implied
Implied or Express
1.A says to B that he is willing to sell his house to him for Rs.50000 2.APSRTC runs different buses in different routs 3.A shoe shiner starts to shine some one’s shoes without being asked to do so
2.An offer must contemplate to give rise to legal consequences and be capable of creating legal relationship
Valid offer or not
promised to his wife that he will take her to a movie every Friday B invited his friend C for dinner A offers to sell his mobile(6600) to C for Rs.5000.
3.The terms of offer must be definite, unambiguous and certain and not loose and vague.
1. 2. 3.
A an owner of 3 cars says to B, “ I will sell you my car”. B says to C that sell me your Car I will give you amount that I can afford. X purchased a horse from y and promised to buy another if the first one proves lucky.
An invitation to offer is not an offer