ESSENTIAL ELEMENTS OF CONTRACT

1- OFFER
i- Definition S.2(a) of the CA’50
ii- Communication S. 4 (1) of the CA’50
iii- Revocation
S.5(1) read together with S.4(2)(a) of the CA’50
s.6(a) –(d) – modes of revocation
iv- Communication of revocation of offer S. 4(3) (a)(b)
v Distinguish with Invitation To Treat
i- Advertisement (exception: refer to Carlill’s case)
ii- Display of goods
iii- Tender
iv- Price List
v- Auction

2- ACCEPTANCE
i- Definition s. 2(b) of the CA’50
ii- Rules
a) absolute & unqualified S.7(a)..COUNTER OFFER
b) prescribed/reasonable time
c) communication – silence does not amount to acceptance
i)- instantaneous rule
ii)- postal rule S.4(2)(a)(b)
iii- Revocation
S. 5(2) read together with S.4(2)(b) of the CA’50
iv- Communication of revocation of acceptance S. 4(3)(a)(b)

3- CONSIDERATION
i- Definition s.2(d) of the CA’50
ii- Types – executory
- executed
- past
iii- Rules
a) Must be sufficient but need not be adequate
b) Must come from offeree or other person

iv- General Rule s.26 of the CA’50

v- Exceptions s.26 (a)(b)(c)
a) Natural love & affection
b) Promise to compensate a past voluntary act
c) Statute barred debt
4- INTENTION TO CREATE LEGAL RELATION
Presumption of law on
1. Family/domestic agreement (no intention)
2. Business/commercial agreement (has an intention)

Then this presumption is rebutted by evidence to show that

1. Family/domestic agreement (has an intention)
2. Business/commercial agreement (no intention)

5- LEGAL CAPACITY
i- General rule S.11..competent person (adult, sound mind, is not disqualified by
law)
ii- Exceptions: (contracts where a minor may enter into)
a) Marriage contract
b) Scholarship
c) Necessaries
d) Insurance
e) Apprenticeship
f) Agency

6- CERTAINTY
S. 30 and Karrupan’s case
means any terms of the agreement must be certain and clear

7. FREE CONSENT :
i) a contract is voidable if one of these elements is available
 Coercion s.15
 Fraud s.17 remedy in s.19
 Misrepresentation s.18
 Undue Influence s.16
 Remedy in s.20

Ii) mistake makes a contract void

 Mutual mistake
 Unilateral mistake (a contract still valid)
 Mistake as to document