LAW OF

CONTRACT
 Kinds of Contract
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Kinds of Contract from the Point of View

of Enforceability

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Kinds of Contract from the Point of View
of Mode of Creation

Kinds of Contract from the Point of View

of the Extent of Execution
Where both the offer and acceptance
constituting an agreement
enforceable at law are made in words
spoken or written.
From the
Point of View
A tells B on phone that he offers to of Mode of
sell his car for Rs.80,000 and B in
reply informs A that he accepts the
Creation
offer, there is an express contact

EXPRESS CONTRACT
Where both the offer and acceptance
constituting an agreement
enforceable by law are made
otherwise than in words i.e. by acts
and conducts of the parties
From the
Point of View
A, a professional shoes shiner
starts polishing the shoes of Y
of Mode of
without being requested and Y Creation
allows A to polish his shoes
knowing that A expects to be paid
for the service and Y is obliged to
pay to A.

Implied Contract
 Voidable
Valid Contract
Contract
FROM THE POINT
OF VIEW OF
ENFORCEABILITY

Illegal or
Unenforceable
Unlawful
Contract
Contract
Void Contract
 An agreement enforceable
by law when all the
essentials elements of a
FO TNIOP EHT MORF

YTILIBAECROFNE

valid contract are pointed

FO WEIV

Valid Contract
 A C C O R DIN G T O SE C T IO N
2 (I) A N A G RE E ME N T
Example W H IC H IS E N FO R C E ABL E
A threatens to shoot B
if he does not sell his BY L A W A T T H E O P T IO N O F
FO WEIV FO TNIOP EHT MORF

new BMW to A for 20 O NE O R M O R E O F T H E

Lakhs. B agrees. The P A R T IE S, BUT N O T AT T H E
YTILIBAECROFNE

contract has been O P T IO N O F T H E O T H E R O R

brought about by OTHERS
Coercion and is
voidable at the option
of B
USUA L L Y A C O N T R AC T
BE C O M E S V OIDABLE
W H E N T HE C O N S E N T O F
O NE O F T HE P AR T IE S T O
Voidable T H E C O NT R AC T IS
O BT A INE D BY C O E R C IO N ,
Contract UNDUE I N FL U E N C E , FR AUD
O R M ISR E PR E SE NT AT IO N
 VOID MEANS NOT BINDING IN LAW. IT
IMPLIES A USELESS CONTRACT
WHICH HAS NO LEGAL EFFECT AT VOID
ALL.
CONTRACT
SUCH A CONTRACT IS A NULLITY AS
FOR THERE HAS BEEN NO CONTRACT
AT ALL.
R E P UDIAT IO N
SUPERVENING O F A V O IDABL E
IMPOSSIBILITY SUBSE Q U E N T C O NT R A C T
A CONTRACT BECOMES
IL L E G A L IT Y
M by threatening to
VOID BY IMPOSSIBILITY
OF PERFORMANCE AFTER A agrees to sell B 100 murder B's Son, makes
FORMATION OF bags of wheat at B agree to sell him
CONTRACT Rs1,650 per bag. house for Rs. 10,00,000,
Before delivery, the original price being Rs.
A and B contract to
govt. bans private 50 Lacs. The Contract,
marry each other. Before
trading in wheat. The being the result of
marriage, A goes Mad.
Contract becomes coercion, is voidable at
The Contract to marry
VOID. the option of B
becomes VOID.
 A Contract which is valid in
itself, but is not capable of
Unenforceable being enforced in a court of
law because of technical
Contract defect such as absence of
writing or time barred by
the law of limitation

For E.g. a bill of exchange or promissory note,

though valid in itself, becomes unenforceable after
three years from the date the bill or note falls due,
being time barred under the Limitation Act
 Executory Contract
A Contract is said to be
executory when either both
the parties to a contract have
still to perform their share of
obligation.

Executed Contract
FROM THE
The contract is said to be
executed when both the parties POINT OF
to a contract have completely VIEW OF
performed their share of
obligation and nothing remains EXTENT OF
to be done by either party
under the contract
EXECUTION
SE C 2 (A ) O F T H E IN DIAN
C O NT R A C T AC T DE FIN E S A
P R O P O SAL AS, W H E N O N E
P E R SO N SI G N IFIE S T O AN O T H E R
H IS W IL L IN G N E SS T O DO O R T O Proposal
A BST A IN FR O M DO IN G
A NY T H ING , W IT H A V IE W T O or Offer
O BT A ININ G T H E ASS E N T O F
T H A T O TH E R T O SUC H AC T , H E
IS SA ID T O MAK E A P R O P O S AL
It must be an expression of the
willingness to do or to abstain from
doing something

The expression of willingness to do or

to abstain from doing somethingg Essentials
must be to another person
of
Proposal
The expression of willingness to do or
to abstain from doing
somethingmust be made with a view
to obtaining the assent of the other
person to such act
 LEGAL RULES REGARDING A VALID
OFFER

A N O FFE R MUST
A N O FFE R MUST BE C O NT E MP L A T E T O G IV E R IS E
E XP R E SS O R IMP LIE D T O L E G A L C O N SEQUE N C E S
A ND BE CAP ABL E O F
C R E A T ING L E G A L R E L AT IO N S

T H E T E RMS O F T H E
O FFE R M UST BE A N INV IT AT IO N T O
C E R T A IN AN D N O T O FFE R IS N O T A O FFE R
L O O SE O R V A G UE
 LEGAL RULES REGARDING A VALID
OFFER

A N O FFE R MUST BE A N O FFE R MUST BE

SP E C IFIC O R G E N E R AL C O M M UNIC AT E D T O T H E
O FFE R E E

A N O FFE R SHO UL D N O T A N O FFE R C AN BE

C O NT A IN A T E R M T H E N O N - M A DE SUBJ E CT T O AN Y
C O M P L IA NC E O F W H IC H TERMS AND
W O UL D A MMO UN T T O C O NDIT ION S
A C C E P T A NC E
 LAPSE AND REVOCATION OF
OFFER

A N O FFE R L A P SE BY N O T
A N O FFE R L A P SES BE ING A CC E P T E D IN T H E
A FT E R STIP UL A T E O R M O DE P R E SRC IBE D, O R IF N O
R E A SO NABL E T IME M O DE IS P R E SCR IBE D, IN
SO M E USU AL AN D
R E A SO NABL E MAN N E R

A N O FFE R L A P SES BY
T H E DE A T H O R IN S AN IT Y
A N O FFE R L A P SES BY
O F T H E O FFE RO R O R
R E J E C T ION
T H E O FFE RE E BE FO R E
A C C E P T A NC E
 LAPSE AND REVOCATION OF
OFFER

A N O FFE R L A P SES BY
R E V O C A T IO N
R E V O C A T IO N BY N O N -
FUL FIL L ME N T O F A
C O NDIT ION P R E C E DE N T T O
A C C E P T A NC E

A N O FFE R L A P SES BY
SUBSE Q U E N T IL L E G AL IT Y O R
NO FUR T HE R L A P SE S
DE ST R UC T IO N O F SUBJ E C T
MATTER
 CASE-STUDY

Indian Contracts Act. 1871 - Case-Study would be e-

mailed to all by e-mail. Evaluation through written
solution submitted by students within 3 days - Monday