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Indian Contract Act 1872
Indian Contract Act 1872
What ts a 'promise'?
Section 2(b) which defines the term:"When the person to whom the
proposal is made signifies his assent thereto, the proposal is
said to be accepted. A proposal, when accepted, becomes a
promise."
(a) Plurality of persons. There must be two or more persons to make
an agreement because one person cannot enter into an agreement
with himself.
(b) Consensus-ad-idem. Both the parties to an -agreement must
agree about the subject-matter of the agreement in the same sense
and at the same time.
Ms. Parul Gupta
2. Legal obligation.
. "All contracts are agreements but all
agreements are not contracts."
" Agreements which create obligations, and
those obligations, which have their
source in agreements"
1. Offer-and acceptance.
There must be a 'lawful offer' and a 'lawful acceptance' of the offer, thus
resulting in an agreement. The adjective 'lawful' implies that the offer and
acceptance must satisfy the requirements of the Contract Act in relation
thereto.
2. Intention to create legal relations.
There must be an intention among the parties that the agreement should be
attached by legal consequences and create legal obligations.
6. Lawful object. For the formation of a valid contract it is also necessary that the parties to an
agreement must agree for a lawful object. The object for which the agreement has been entered
into must not be fraudulent or illegal or immoral or opposed to public policy or must not imply injury
to the person or property of another (Sec. 23).
7. Writing and registration. According to the Indian Contract Act, a contract may be oral or in writing.
But in certain special cases it lays down that the agreement, to be valid, must be in writing or/and
registered.
8.certainty. Section 29 of the Contract Act provides that "Agreements, the meaning of which is not
certain or capable of being made certain, are void. Ms. Parul Gupta
KINDS OF CONTRACTS
1. Valid contract. A valid contract is an agreement enforceable by law. An
agreement becomes enforceable by law when all the essential elements of a
valid contract as enumerated above are present.
3. Void contract. Literally the word 'void' means 'not binding in law'. Section 2(j)
defines: "A contract which ceases to be enforceable by law becomes void,
when it ceases to be enforceable.“
Section 2(a) of the Indian Contract Act defines a 'proposal' as, "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".,
This definition reveals the following three essentials of a 'proposal':
1. Must be given only by the person to whom the offer was made
2. Must be absolute and unconditional
3. Must be in some usual and reasonable manner
4. Must be communicated by the acceptor
5. Must be given within reasonable time
6. Must succeed the offer
7. Rejected offers can be accepted only if renewed
Ms. Parul Gupta
Consideration
Definition