INDIAN CONTRACT ACTACT-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, ³an 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 PRO 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 
Lawful object  if forbidden by law  of such nature that

Undue Influence Misrepresentation

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

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