Abstract

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The Law of contract is the most important part of commercial law as every commercial transaction starts from an agreement between two or more parties. The focus of this assignment is mainly on two topics- the law of contract and the enforcement of civil obligation. The enforcement of voluntarily created civil obligations through effective contract law is going to be analyzed in this assignment. I would like to thank my honorable faculty Barrister Arif Billah for his support during the project and also all my friends and classmates who helped me to complete this project on time.

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Conclusion 5. Research Findings 4.Table of Contents: TOPIC 1. Reference Page 03 07 09 10 11 2 . Topic Analysis 3. Introduction of contracts and civil obligations 2.

K.” From the above definition of promise. and in case of a breach of a promise by one party to the agreement. (2004). Gillies.” In other words “When the person to whom the proposal is made signifies his assent thereto. J. and (ii) an acceptance of that offer or proposal.e. All agreements are not studied under the Contract Act. and (ii) legal obligation. P. a contract consists of two elements: (i) an agreement. it is obvious that an agreement is an accepted proposal. The Contract Act is the law of those agreements which create obligations. there are some agreements which are not enforceable in a law court.K. The two elements of an agreement are: (i) offer or a proposal. DC: Federation Press 3 . However. It can be stated as “every promise and every set of promises forming consideration for each other. as some of them are not contracts. Commercial law and industrial law. A. Such agreements do not give rise to contractual obligations and are not contracts.Introduction on Contract and Obligations: The law of contract is a very essential law in the field of business and commerce as most of the businesses involve some contracts in their daily operation. (2012). Business Law (12th ed. A contract is an agreement enforceable by law. the proposal is said to be accepted. Thus. Calcutta 2. Sen.. & Mitra. i.. 1. A proposal when accepted becomes a promise.). Washington. Only those agreements which are enforceable at law are contracts. the other has a legal remedy. it should be enforceable at law.

” Thus. Intention to create legal relationship. Some more elements which are essential in order to constitute a valid contract. 6. 3. (1988) Concise contract law. for a lawful consideration and with a lawful object and are not hereby expressly declared to be void.K. A. 5. Necessary Legal Formalities. Washington. 9.We have seen above that the two elements of a contract are: (1) an agreement. Agreement. (2012). J. Commercial law and industrial law. Certainty of meaning. 10. It reads as follows: “All agreements are contracts if they are made by free consent of parties. DC: Federation Press 4 . Agreements not declared void or illegal. 2. 1. Lawful consideration. Lawful object. & Mitra. Sen.K. the essential elements of a valid contract can be summed up as follows 1.. 4. (2) legal obligation. competent to contract. Free and genuine consent. Possibility of performance. 7. 8. Calcutta 2. Gillies P. Parties competent to contract.

registration and attestation. Jody Kraus. Atiyah.An agreement is composed of two elements—offer and acceptance. P. They both must be thinking of the same thing in the same sense. The consent of the parties to the agreement must be free and genuine. As already mentioned there should be an intention on the part of the parties to the Law of Contracts agreement to create a legal relationship. On the other hand. The agreement must be supported by consideration on both sides. Promises and the Law of Obligations. The party making the offer is known as the offerer. there are essentially to be two parties to an agreement. a particular type of contract is required by law to be in writing.S. Villanueva ed. 2002) 2. undue influence. the party to whom the offer is made is known as the offeree. 209 (1978) 5 .. coercion or mistake. If. however. A contract is an agreement having a lawful object entered into voluntarily by two or more parties. it must comply with the necessary formalities as to writing. Each party to the agreement must give or promise something and receive something or a promise in return The meaning of the agreement must be certain or capable of being made certain otherwise the agreement will not be enforceable at law A contract may be oral or in writing. 94 LAW Q. fraud. 193. The elements of a contract are "offer" and "acceptance" by "competent persons" having legal capacity who exchange "consideration" to create "mutuality of obligation There is a presumption for commercial agreements that parties intend to be legally bound . each of whom intends to create one or more legal obligations between or among them. Thus. 1.. in LEGAL AND POLITICAL PHILOSOPHY 385. Legal Theory and Contract Law: Groundwork for the Reconciliation of Autonomy and Efficiency. 395-410 (E. Contracts. if necessary. REV. then the contract is not enforceable at law. If these legal formalities are not carried out. many kinds of domestic and social agreements are unenforceable on the basis of public policy. The parties to a contract should be competent to enter into a contract. The consent of the parties should not be obtained by misrepresentation.

). Natural obligation and civil obligation. Retrieved from http:// www. although certain people are obliged to carry out certain actions for other reasons as well. There are also obligations in other normative contexts.[1] Obligations are generally granted in return for an increase in an individual's rights or power Obligations are generally of two types. Obligations vary from person to person: for example. natural law and conscience. a person holding a political office will generally have far more obligations than an average adult citizen.com/def2 (From the Lectric Law Library’s Lexicon) Civil law obligations Retrieved from http:// www. which can incur a penalty for non-fulfillment. Retrieved from http:// www. So any one violates this obligation can not be punished under law. Obligations.wikipedia. It is not demandable by law. Natural obligations are based on morality.com/docs/civillawobligations 6 . (2013).lectlaw. The violator of this obligation can be compelled by the court of justice. There is no penalty attached to it.org/obligations Obligations (n. social obligations. whether as a tradition or for social reasons. These are generally legal obligations.d.An obligation is a course of action that someone is required to take.docstock. and possibly in terms of politics. where obligations are requirements which must be fulfilled. such as obligations of etiquette. who themselves will have more obligations than a child. On the other hand civil obligation is a type of obligation which is legally demandable and has a penalty attached to it. whether legal or moral.

This law of contract is closely tied to civil obligations.K. J. So it is clear that the law of contract is based on the act of civil obligations which are established under the present law of the country.. So the court can always make decisions over any violation of the contract condition as the civil obligation is legally demandable. we can also see certain obligations or duties needed to be carried out by the both parties and any violator will receive a penalty. Contracts are written agreements. The contract also specifies a certain way of doing thing or conducting a business. At the same time.Contracts (n.Topic Analysis: The law of contract is mainly based on voluntarily created civil obligations. In the contract law. The contract law is based on civil obligations. We can deduct from the earlier discussion that contract is a lawful object and so requires legal consideration. They break the promises they have made mutually. a contract is mainly a set of promises. A contract is made to meet some perspectives. But often there is a case that one or more parties do not follow the rule of the contracts.org/contracts 7 . (2012). Civil obligations are the obligations demanded by the present law including penalty. Some contracts involve a huge amount of money. That’s why some penalties are attached to the contract paper. So it will be a great risk if there is no written agreement about the terms and conditions. These penalties mention which steps are to be taken if one party violates the promises. & Mitra. Also through a contract two parties involve in a legal relationship. These promises are made by the both parties. Sen.wikipedia.) Retrieved from http:// www. Commercial law and industrial law. Contract mainly is made between two or more parties. Calcutta 2. As we know from the elements of the contract. The most important thing is the security. This written form also ensures that no party can decline the terms and conditions in the future. 1. A. the penalty attached to the contract law under the civil obligation ensures that if any one violates the conditions of the contract he or she will be punished and there will be a remedy to the problem. So the contract law gives the two parties security under the civil laws.K.d. Contract is made mainly between two business parties.

A contract is a set of promises which are voluntary. We know law of contract is made under the civil obligations. The law of contract also includes the enforcement of the penalties that has been attached to the violation of the civil obligation. These terms are made voluntarily and with a free consent of each party. 1. Civil obligation that is created during making a contract is made voluntarily. 205. And now. the law of contract ensures that he or she can go to the court to file a case and get justice based on the contract agreement. 206 (2000) 2. Although sometimes these conditions are less voluntary inaction as there are some moral and environmental constraints attached to the contract.d. Parties involved in the contract set some rules accepted by themselves.d.jstor. 20 OXFORD J. When formulating the contract. We know contract is made between generally two parties.p 8 . Hanoch Sheinman. This enforcement is also required for ensuring the security of the parties involved in a contract. These civil obligations are often created voluntarily. One of the key elements of a contract is a free and genuine consent. it ensures the enforcement of those civil obligations.) Retrieved from www. For example. Contractual Liability and Voluntary Undertakings. suppose two business parties agree a contract agreement where one party will give the other party 5 lacs tk when a specific job is done. As law of contract is related to the civil obligations. Each party accepts the conditions. So the enforcement is vital for the security. the two parties set up some rules and regulations which are mutually agreed. L. Voluntary obligation and normative power (n.Now comes the question of voluntary creation of civil obligation and it’s enforcement. if one party does not get his money even after the job is done. STUD.com/docs/contractandcivilobligations 3. Contractual Agreement and civil obligations (n.org/voluntaryobligations 4. These terms are created voluntarily. The both parties sit together and make some rules which are created by keeping both party’s interest in mind.docstoc.) Retrieved from http://www. As we know civil obligations are the set of rules which are legally demandable and so violation of those obligations requires punishment.com/Course_Lectures/ECE_Laws/GenProvisionsObligations. Law of obligation and contract Retrieved from http://glennavendano.

The contract law is based on the civil obligation. 9 . Law of contract involves voluntarily created civil obligations. we can find that the law of contract is a set of rules and conditions that are been mutually agreed between the two parties. So the terms and conditions included in the contract are demanded by the law to follow and any violation involves penalty. Law of contract does not really focuses on too much moral constraints or natural obligations. So the law of contract confines itself to the enforcement of voluntarily created civil obligations. Contract is required to ensure the security of transactions between the parties and so the enforcement of law is also vital. These obligations which are included in the contract are formed voluntarily by the two parties according to the present law of the nation. The contract agreement includes free and genuine consent and each party agrees the obligation. Law of contract mostly focuses on obligations that are bound by civil law.Research Findings: From the research. And the contract law ensures the security of the agreement through the enforcement of the stated civil obligations.

Law of contract is vital for ensuring the two parties involved in the agreement.Conclusion: The law of contract is one of the most important laws that are present in the business and industrial law. it creates paths for solving any problems or obstacles that comes during the period of the contract. Law of contract is based on the civil obligation that are created voluntarily with the consent of each party. 10 . At the same time. The enforcement of the law should be made more easy and it should be ensured that all the violation of the law is eradicated through the logical enforcement of related civil obligations.

Hanoch Sheinman. 20 OXFORD J.S. Calcutta 2. 205. J. P. P.com/Course_Lectures/ECE_Laws/GenProvisionsObligations.org/contracts 10. (1988) Concise contract law. Retrieved from http:// www. Jody Kraus. Atiyah.docstock. Obligations.com/docs/contractandcivilobligations 12. in LEGAL AND POLITICAL PHILOSOPHY 385.org/voluntaryobligations 13. Villanueva ed. 94 LAW Q. (2013). DC: Federation Press 3.org/obligations 7. Gillies P. Business Law (12th ed. DC: Federation Press 4.Reference: 1. & Mitra.jstor. 2002) 5. 193.wikipedia.K. L. 209 (1978) 6. STUD. 395-410 (E.docstoc. Retrieved from http:// www. Commercial law and industrial law.d.lectlaw.d.d. Civil law obligations Retrieved from http:// www. Contractual Liability and Voluntary Undertakings. (2004). Promises and the Law of Obligations. Sen..d.com/def2 (From the Lectric Law Library’s Lexicon) 8. A. (2012). Law of obligation and contract Retrieved from http://glennavendano.). Contractual Agreement and civil obligations (n. REV.) Retrieved from www.) Retrieved from http://www. Washington. 206 (2000) 11. Contracts (n.. Gillies.p 11 .com/docs/civillawobligations 9.). Washington.K. Contracts. Voluntary obligation and normative power (n.) Retrieved from http:// www.wikipedia. Obligations (n. Legal Theory and Contract Law: Groundwork for the Reconciliation of Autonomy and Efficiency.

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