BARKATULLAH UNIVERSITY

DEPARTMENT OF
LEGAL STUDIES AND RESEARCH

SUBJECT :- LAW OF CONTRACT

SUBMITTED TO :-
SUBMITTED BY :- ARYAN SONI
 AGREEMENT AND CONTRACT
DEFINATION , ELEMENTS AND KINDS
OF CONTRACT ,
( Indian Contract Act, 1872 )
 LAW OF CONTRACT

What is Contract ;-
A contract has been defined under Indian Contract Act, 1872 sec 2(H)
"An agreement enforceable by law "
What is Agreement ;-
Indian Contract Act, sec(e) defines Agreement as
"Evert promise and set of promises forming the consideration for each
other is an agreement ".
DIFFERENT BETWEEN CONTRACT AND AGREEMENT

Matter Agreement Contract

Meaning Every promise and set of promises Agreement enforceable by law is a
forming consideration for each other is contract.
an agreement.
One in another All agreements are not contracts All contracts are agreements

Enforceability May not be enforceable NO (cout for Always Always enforceable

remedy)
Rights to parties It does not always grant a right It always grants rights
 A promises to deliver his watch B and in return B promises to pay a sum of Rs. 2,000 to A,
there is said to be an agreement between A and B.
A Promise is a result of an offer (proposal) by one person and its acceptance by the other.
Promise-Sec 2(b)
When the person to whom the proposal is made signifies his assent (consent),
the proposal is said to be ACCEPTED.
A proposal, when accepted becomes a promise. "Thus, when there is proposal from one side and
the acceptance of that proposal by the other side, it results in a promise.
This promise from the ONE parties to one another is known as an AGREEMENT
 Characteristics of an
Agreement
Plurality of persons Consensus-ad-idem

There must be two or more persons to make Both the parties to an agreement must agree
an agreement because one person cannot about the subject matter of the agreement in
enter into an agreement with himself. the same sense and at the same time.
MEETING OF MINDS ,

how contract made ???

orally , written and registered .
 What are the Essentials of Contract?
Free consent of There is absence of 'free consent', if the agreement is induced by any of the
the parties following factors:- Coercion , Undue Influence , Mistake , Fraud , Misrepresentation
Not expressly declared There must be an intention among the parties that the agreement
by the act to be void consequences and create legal should be attached by legal obligations.
Lawful Only those considerations are valid which are 'lawful'
consideration the price paid by one party for the promise of the other is consideration.
Lawful The parties to an agreement must agree for lawful object. The object of agreement must not be
object Fraudulent ,Illegal ,Immoral ,Opposed to public policy ,Must not imply injury to person/property
Parties competent to parties , must be major ie :- 18+
contract sound mind
must not be Disqualified by law or from contracting
TYPES OF CONTRACT :
1) EXPRESS CONTRACT : When a contract is created in words spoken or written.
2) IMPLIED CONTRACT : When a contract is entered by parties not by words but by action or
conduct of parties .
3) CONSTRUCTIVE OR QUASI CONTRACT : A contract does not arise by virtue of any agreement
express or implied between the parties but the law infers or recognizes a contract Under certain
circumstance's .
4)VOIDABLE CONTRACT :An agreement, which is enforceable by law at the option of one or
more of the parties there to is a voidable contract". Thus ,it is enforceable by law at the option of
one of the parties .If a voidable contract is not avoided it is a valid contract. voidable usually coz
of coercion , undue influence , misrepresentation ,fraud , etc .
5)VOID AGREEMENTS : Literally the word 'void' means 'not binding in law' The one of the
essential of a valid contract is that it must not be one which is 'expressly declared to be void by
the Act.
VOID CONTRACTS : A void contract is one that is invalid from the beginning because it violates
the law or public policy. It doesn't become void after it's formed; it's void from the outset.
 That's it, folks.

Thank you!