This action might not be possible to undo. Are you sure you want to continue?
Straightforward concept and not mathematically complex 3. Graphical networks help highlight relationships among project activities 4. Critical path and slack time analyses help pinpoint
6. 7. 8. 9.
1. 2. 3. 4.
Project documentation and graphics point out who is responsible for various activities 6.Applicable to a wide variety of projects 7.Useful in monitoring not only schedules but costs as well
Project activities have to be clearly defined, independent, and stable in their relationships Precedence relationships must be specified and networked together Time estimates tend to be subjective and are subject to fudging by managers There is an inherent danger of too much emphasis being
Law of contract : Law of contract An agreement enforceable by Law Agreement = offer +acceptance Essentials of a contact : Essentials of a contact At least two parties Agreement = Offer and Acceptance Consensus ad idem-identity of mind Free consent –the contracting parties must give their consent freely. Contractual competency Lawful consideration Lawful object Slide 3: The agreement is capable of being performed Legal formalities Kinds of contract : Kinds of contract Express Contact Implied contract Quasi contract Valid Contract Void contract- A void able contract IIIegal Void agreement An enforceable contract An executed contract An executory contract Express contract : Express contract A contract which is made in word-spoken or written Eg:A,who in front of B makes an offer to sell out his bike to B by mouth.B accept it verbally . Implied Contact : Implied Contact not made by the parties in writing or by words of mouth .this contract inferred from the conduct of the parties Eg:bus restaurant Quasi contract : Quasi contract quasi contracts are based on the principle of justice and equity.inspite of not having any contract between parties ,the rights and obligations as created by a formal contract Executed and executory : Executed and executory Performed contract One that has not been yet performed Valid contract : Valid contract Satisfied all conditions of essential contract Void contract : Void contract The contract may either from beginning when it was made or may later on discover to be void Void able contract : Void able contract Aggrieved party Illegal contract : Illegal contract Object is lllegal Unenforceable contract : Unenforceable contract Due to some technical error A makes out promissory note in favour of B for Rs.1000.It has stamp duty of Rs 5.While as per law requirement of law it must have stamp duty of Rs 10
All of us enter into a number of contracts everyday knowingly or unknowingly. Each contract creates some right and duties upon the contracting parties." And other words Say Agreement is Sum of Promise and offer . There are two essentials of this act. agreement and enforceability. as subsequently amended. Proposal when accepted. Section 2(e) defines agreement as "every promise and every set of promises. It determines the circumstances in which promise made by the parties to a contract shall be legally binding on them. Indian contract deals with the enforcement of these rights and duties upon the parties. the proposal is said to be accepted." Again Section 2(b) defines promise in these words: "when the person to whom the proposal is made signifies his assent thereto.Indian Contract Act 1872 is the main source of law regulating contracts in Indian law. Contents [hide] 1 Definition 2 Essential Elements of a Valid Contract 3 Types of contracts 4 Offer 5 Acceptance 6 Lawful consideration 7 Competent To Contract 8 Free Consent 9 Revocation of Offer 10 Agency 11 Notes 12 References 13 External links  Definition Section 2(h) of the Act defines the term contract as "any agreement enforceable by law". The Indian Contract Act 1872 sections 1-75 came into force on 1 September 1872. It applies to the whole of India except the state of Jammu and Kashmir. forming the consideration for each other. becomes a promise. It is not a complete and exhaustive law on all types of contracts.
4. Legal Formalities  Types of contracts On the basis of validity: . for a lawful consideration with a lawful object. and not hereby expressly to be void." Essential Elements of a Valid Contract are: 1.as such they are not contracts. consideration should be real and lawful.agreements of a social or domestic nature do not contemplate legal relationship. Consideration means “something in return” (quid pro quo). section 3 to 9 of the contract act. undue influence or mistake. "All agreements are contracts. 5. if they are made by the free consent of the parties. 3..there must be intention must be to create a legal relationship between them . competent to contract.if there is no such intention on the part of the parties .. fraud. However. Possibility Of Performance 9. Essential Elements of a Valid Contract According to Section 10.. The person is not disqualified from contracting by any law..Competent to contract or capacity: In order to make a valid contract the parties to it must be competent to be contracted. It can be past. kind. 1872 lay down the rules for making valid acceptance 2. Agreement not declared void or illegal: Agreements which have been expressly declared void or illegal by law are not enforceable at law. Intention To Create Legal Relationships:-when the two parties enter in to an agreement. hence they do not constitute a valid contract. According to section 11 of the Contract Act. The person is of sound mind. It should not be obtained by misrepresentation. coercion.Lawful consideration: An agreement to form a valid contract should be supported by consideration.Lawful Object and Agreement: The object of the agreement must not be illegal or unlawful. present or future.Free Consent: To constitute a valid contract there must be free and genuine consent of the parties to the contract. Certainty. a person is considered to be competent to contract if he satisfies the following criterion: The person has reached the age of maturity. It can be cash. 6. there must be an agreement based on a lawful offer made by person to another and lawful acceptance of that offer made by the latter. 7.there is no contract between them .Proper offer and proper acceptance. 8. an act or abstinence.
Express contract: Where the terms of the contract are expressly agreed upon in words (written or spoken) at the time of formation. These contracts are neither void nor voidable. 3. promise is said to be implied. 2. 2. Valid contract: An agreement which has all the essential elements of a contract is called a valid contract. a contract which is partially performed or wholly unperformed is termed as executory contract. would defeat the provisions of any law or is fraudulent. These agreements are punishable by law. A contract when originally entered into may be valid and binding on the parties. 4. On the basis of formation: 1. Executory contract: An executory contract is one where one or both the parties to the contract have still to perform their obligations in future. If the essential element of free consent is missing in a contract. However. the contract continues to be good and enforceable unless it is repudiated by the aggrieved party. Thus. or involves or implies injury to a person or property of another. It may subsequently become void. A valid contract can be enforced by law. . -. 2. Unenforceable contract: Where a contract is good in substance but because of some technical defect cannot be enforced by law is called unenforceable contract. These are void-ab-initio. the law confers right on the aggrieved party either to reject the contract or to accept it. A quasi contract is based on the principle that a person shall not be allowed to enrich himself at the expense of another. Executed contract: An executed contract is one in which both the parties have performed their respective obligation. On the basis of performance: 1. but not at the option of other or others. if permitted. Illegal contract: A contract is illegal if it is forbidden by law. It is legal obligation which is imposed on a party who is required to perform it. Thus.” 5. quasi contracts are strictly not contracts as there is no intention of parties to enter into a contract. is a voidable contract. Voidable contract[Section 2(i)]: An agreement which is enforceable by law at the option of one or more of the parties thereto. Void contract[Section 2(j)]: A void contract is a contract which ceases to be enforceable by law. the contract is said to be express contract. or is of such nature that. Quasi contract: A quasi contract is created by law.There are many judgments which have stated that where any crime has been converted into a "Source of Profit" or if any act to be done under any contract is opposed to "Public Policy" under any contract—than that contract itself cannot be enforced under the law3. Where a proposal or acceptance is made otherwise than in words. “All illegal agreements are void agreements but all void agreements are not illegal. or court regards it as immoral or opposed to public policy. Implied contract: An implied contract is one which is inferred from the acts or conduct of the parties or from the circumstances of the cases.1.
A statement made by a person who does not intend to bound by it but. Acceptance must be absolute and unqualified. is an invitation to offer. 5. Unilateral contract: A unilateral contract is one in which only one party has to perform his obligation at the time of the formation of the contract. 6. Vs. 4. 850. Rustom Cowasjee. Thus. Bilateral contract: A bilateral contract is one in which the obligation on both the parties to the contract is outstanding at the time of the formation of the contract. Mere silence is no acceptance. 4. it is an attempt to induce offers and precedes a definite offer. Silence does not per-se amounts to communicationBank of India Ltd. Bilateral contracts are also known as contracts with executory consideration. But mere expression of willingness does not constitute an offer. Standing. the other party having fulfilled his obligation at the time of the contract or before the contract comes into existence. The offer must be distinguished from an invitation to offer. Acceptance must be given within a reasonable time before the offer lapses. Acceptance must be in the mode prescribed." Rules: 1. 5. intends to further act. 3.R. Invitation to offer An invitation to offer is only a circulation of an offer. 419 at P. 430. 3.  Offer Proposal is defined under section 2(a) of the Indian contract Act.AIR 1955 Bom.  Acceptance According to Section 2(b). Special Offer: Which is made to a definite person. unless there is a duty to make some statement or to do some act . he is said to make a proposal/offer". It does not even amount to any representation on which any plea of estoppel may be founded. L. General Offer: Which is made to public in general. Communicated to offeror. for a valid offer. The offer should be communicated to the offeree and it should not contain a term the non compliance of which would amount to acceptance. the proposal is said to be accepted.Mere silence cannot amount to any assent. Counter Offer: Modification and Variation of Original offer. 1872 as "when one person signifies to another his willingness to do or to abstain from doing anything with a view to obtain the assent of that other to such act or abstinence. Acceptance by the way of conduct.the party making it must express his willingness to do or not to do something. An offer should be made to obtain the assent of the other. 57 Bom.3. Acceptance of an invitation to an offer does not result contract and only an offer emerges in the process of negotiation. 2. "When the person to whom the proposal is made signifies his assent thereto. Classification of Offer 1. Cross Offer: Exchange of identical offer in ignorance of each other. 2. 4. Open or Continuing Offer: Which is open for a specific period of time.
7. 3. He should not be a minor i.Agreement of which object or consideration was opposed to public policy. or does or abstains from doing. He is not a person who has been personally disqualified by law. Vs. unlawful and void."considertion means to do something In short. The consideration or object of an agreement is lawful. 1191 at 1197. or promises to do or abstain something.e. Ltd. 2. or is fraudulent. or is of such nature that. it would defeat the provisions of any law. such an act or abstinence or promise is called consideration for the promise. Jaipur. He should be of sound mind while making a contract. 4.goods. if permitted.e. something in return. offree and offerer must be consent  Lawful consideration According to Section 2(d). unless and until it is: 1.J.  Competent To Contract Section 11 of The Indian Contract Act specifies that every person is competent to contract provided: 1.]. 1198 [Raj. Consideration means quid pro quo i. or involves or implies injury to the person or property of another.What considerations and objects are lawful and what not-Newar Marble Industries Pvt. It is unenforceable as against the Petitioner-Company. 2. or opposed to public policy. Consideration is defined as: "When at the desire of the promisor. 5. services. a promise to marry. 18 years. This consideration or object is clearly opposed to public policy and hence the compounding agreement is unlawful and void under Section 23 of the Act. A person with unsound mind cannot make a contract. forbidden by law. Contract Opposed to Public Policy can be Repudiated by the Court of law even if that contract is beneficial for all of the parties to the contract.e. a promise to forbear etc. consideration may take in any form-money. the promisee has done or abstained from doing. 1993 Cr. L. An agreement must be supported by a lawful consideration on both sides. Rajasthan State Electricity Board.What better and what more can be an admission of the fact that the consideration or object of the compounding agreement was abstention by the board from criminally prosecuting the petitioner-company from offence under Section 39 of the act and that the Board has converted the crime into a source of profit or benefit to itself. . 3. or the court regards it as immoral. an individual who has not attained the age of majority i.-.
2. Mistake of fact (Section 20): "Where both the parties to an agreement are under a mistake as to a matter of fact essential to the agreement. to the prejudice of any person whatever. with intent to deceive another party thereto of his agent. or to induce him to enter into the contract. the burden of proving that such contract was not induced by undue influence shall lie upon the person in the position to dominate the will of the other. with the intention of causing any person to enter into an agreement. Undue influence (Section 16): "Where a person who is in a position to dominate the will of another enters into a contract with him and the transaction appears on the face of it. or (4) by the death or insanity of the proposer. Free Consent According to Section 14. A consent is said to be free when it not caused by coercion or undue influence or fraud or misrepresentation or mistake.1860). without communication of the acceptance. Elements Vitiating free Consent 1. or the unlawful detaining. A proposal is revoked (1) by the communication of notice of revocation by the proposer to the other party. the agreement is void". but not afterwards. or threatening to detain. however innocently. to be unconscionable. (2) by the lapse of the time prescribed in such proposal for its acceptance. or by his agent. or threatening to commit. if the fact of the death or insanity comes to the knowledge of the acceptor before acceptance. 4. or. any act forbidden by the Indian Penal Code under(45. . Misrepresentation (Section 18): " causing. Fraud (Section 17): "Fraud" means and includes any of the following acts committed by a party to a contract. 5.  Revocation of Offer A proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer. " two or more persons are said to be consented when they agree upon the same thing in the same sense (Consensus-ad-idem). or on the evidence. Coercion (Section 15): "Coercion" is the committing. any property. a party to an agreement to make a mistake as to the substance of the thing which is the subject of the agreement". or with his connivance. An acceptance may be revoked at any time before the communication of the acceptance is complete as against the acceptor. but not afterwards. by the lapse of a reasonable time." 3. (3) by the failure of the acceptor to fulfill a condition precedent to acceptance. if no time is so prescribed.
the revocation or renunciation of an agency may be made expressly or impliedly by conduct. before such authority has been so exercised (Sec 203). till it becomes known to him and as regards third party.g. (iv) By the principal being adjudicated insolvent (Section 201 of The Indian Contract Act. though he can always do so. Further. e. damage resulting from want of such notice. (Illustrations to section 201) (ii) By the agent renouncing the business of agency.g. The law of agency thus governs the legal relationship in which the agent deals with a third party on behalf of the principal. with poor to recoup himself from the sale proceeds.). accounting. good faith. Agency In law. in such a case. etc. As per section 207. the law of agency is concerned with the external business relations of an economic unit and with the powers of the various representatives to affect the legal position of the principal. except for sufficient cause. the advances made by him to the principal against the security of the goods. Hence. where the goods are consigned by an upcountry constituent to a commission agent for sale. to sell his goods. the process of concluding a contract through an agent involves a twofold relationship. otherwise. Further. On the one hand. (iii) By the business of agency being completed. will have to be paid (Section 206). to manage his business. Notice in this connection that want of skill continuous disobedience of lawful orders. When an agent’s authority is terminated. till the termination is known to them (Section 208). 1872) The principal also cannot revoke the agent’s authority after it has been partly exercised. The competent agent is legally capable of acting for this principal vis-à-vis the third party. if the agency is for a fixed period. The same rules apply where the agent. renounces an agency for a fixed period. (Section 210). e. so as to bind the principal (Section 204). Such Agency is coupled with interest. the principal cannot revoke the agent’s authority till the goods are actually sold. nor is the agency terminated by death or insanity. If he does. and rude or insulting behavior has been held to be sufficient cause for dismissal of an agent. it rules the internal relationship between principal and agent as well. . it operates as a termination of subagent also. Under section 201 to 210 an agency may come to an end in a variety of ways: (i) By the principal revoking the agency – However. to do his work. reasonable notice has to be given by one party to the other. thereby imposing certain duties on the representative (diligence. On the other hand. as per section 205. the principal cannot terminate the agency before the time expired. principal cannot revoke an agency coupled with interest to the prejudice of such interest. The termination does not take effect as regards the agent. the relationship that exists when one person or party (the principal) engages another (the agent) to act for him. he is liable to compensate the agent for the loss caused to him thereby.. An agency is coupled with interest when the agent himself has an interest in the subjectmatter of the agency.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.