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  • Nature of Contracts

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    Sohail Ahmed
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    The document discusses the key elements of a valid contract under the Indian Contract Act of 1872. It outlines that a contract requires an agreement between two parties that is enforceable by law. An agreement involves a promise and set of promises with consideration. For there to be a valid contract there must be an offer and acceptance between the parties that results in a promise supported by consideration and enforceability under the law.

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    Indian Contract Act 1872

    Original Title

    2. Nature of Contracts

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    The document discusses the key elements of a valid contract under the Indian Contract Act of 1872. It outlines that a contract requires an agreement between two parties that is enforceable by law. An agreement involves a promise and set of promises with consideration. For there to be a valid contract there must be an offer and acceptance between the parties that results in a promise supported by consideration and enforceability under the law.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    6 views4 pages

    Nature of Contracts

    Uploaded by

    Sohail Ahmed
    The document discusses the key elements of a valid contract under the Indian Contract Act of 1872. It outlines that a contract requires an agreement between two parties that is enforceable by law. An agreement involves a promise and set of promises with consideration. For there to be a valid contract there must be an offer and acceptance between the parties that results in a promise supported by consideration and enforceability under the law.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 4

    The Indian Contract Act, 1872

    Contract
    Section 2(h)

    “An agreement enforceable by law"

    Essentials of a Contract
    1. An Agreement

    2. Enforceability by Law

    Agreement
    Section 2(e)

    "Every promise and every set of promises, forming the consideration for each

    other."

    Subject matter of Agreement

    “A”- Seller

    “B”- Buyer

    Consideration- Rs. 10,00,000/-

    Parties ( Buyer & Seller) meets

    Finalising the terms and conditions

    1. Buyer pays the price


    2. Seller gives the possession of the car
    Essential Elements of a Valid Contract-Section 10
    Offer & Acceptance

    Proposal/Offer
    Section 2(a)

    “When one person signifies to another his willingness to do or to abstain from

    doing anything with a view to obtaining the assent of that other to such act or

    abstinence, he is said to make a proposal.”

    Acceptance
    Section 2(b)

    “A proposal or offer is said to have been accepted when the person to whom the

    proposal is made signifies his assent to the proposal to do or not to do

    something.”

    Promise
    Section 2(b)

    "When the person to whom the proposal is made signifies his assent thereto, the

    proposal is said to be accepted. Proposal when accepted, becomes a promise."


    Offer + Acceptance = Promise

    Promise + Consideration = Agreement

    Agreement + Enforceability = Contract

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