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CONTRACTS

y Indian contract act-1872 y What do we mean by agreement? every promise or set of

promises forming consideration for each other is agreement.-A promise when accepted becomes agreementy Contract-Agreement enforceable by law-Balfour vs Balfour casey Offer-willingness to do something or abstain from something to get some oneµs consent.

CONTRACTS y Consideration ²At the desire of the promisor.promisee or anyone acting on behalf of promisee does or does not do somethingy Consent-Agree upon something in the same sensey Agreements should have intention to be bound and consideration-plurality of persons and consensus ad idemy Elements of a contract- .

intention to create legal obligation.certainty and possibility of performance.void contract.offer +acceptance.CONTRACTS y Minimum two parties.and legal formalitiesy Kinds of contracts include express contracts.quasi contracts as in the maxim that finder of goods must return it.lawful object.implied contracts.contingent contracts as in insurance.executed contract.not expressly declared void.- .voidable contract.executory contract.free consent.valid contract.lawful consideration.competent parties.unenforceable contract and illegal agreements.

etc.CONTRACTS y Essentials of a valid offer include intention to create legal obligations.It must be to do some thing or abstain from some thing. y An invitation to offer is not an offer-Harrey vs Facie case-shopkeeperµs catalogue is not an offer of sale. and two identical cross offers will not make a contract- .certainty.and an offer must not be negative in content.must be communicated .

by revocation etc. by subsequent illegality or destruction of subject matter. by death. by rejection. by counter offer or conditional acceptance. or insanity of any one of the parties.similarly essentials of a valid acceptance includes that it be made by the offeree and that it must be communicated to the offeror after receiving the offer and before the offer lapses .Contracts y An offer may lapse by efflux of time. by wrong mode of acceptance .

etc. telephone. ‡ Consideration may move from promisee or any other personChinaya Rau vs Ramayya-Old lady left a will. not at the desire of a third party. Consideration ‡ At the desire of the promissor (not voluntary). fax.Estates to the daughter-To take care of old uncle-( doctrine of vicarious performance-one person liable for anotherµs actions-) .CONTRACTS y Mode of Communication-Absolute and unqualified y Communication by post . telex.

Consideration must be an act. abstinence or promise- .CONTRACTS y Maternal uncle and donee also had a separate agreement- But no annuities were paidy Consideration flowed from the old lady·s gift and the separate deed between donor and donee flowed from itSo even a stranger to the consideration can sue on a contract provided he is a beneficiary or a party to the contract-Known as the doctrine of constructive consideration ² y Rule of privity of contract.

gifts made and for contracts of agency.for voluntary services in the past.CONTRACTS It may be past.Legal duty is no consideration ² Consideration must be legal ² Consideration ²is not necessary where agreements are made on account of love and affection.present or future.for promises to pay time barred debts. not permissible).must be real (price deemed right etc. .

which defeat the purpose of any law or its provisions. as in money given to a married woman to enable her to divorce her husband. .CONTRACTS y Considerations that are forbidden by law as say in getting a government job by paying bribes. which are fraudulent. trafficking in public offences. are injurious to the person or property of another. are immoral. agreements opposed to public policy like trading with enemy.

unfair and unreasonable dealings and creating interest against public duty are all invalid. y CAPACITY TO CONTRACTy Parties must be competent to contract before entering into a contract- . stifling prosecution.CONTRACTS y Interfering with the course of justice as in giving false evidence. (criminal law administration by individuals) maintenance and champerty (third person assisted to conduct legal proceedings)marriage brokerage.

CONTRACTS y So minor·s agreements are void ab initio. y Mohoribibi vs Dharmodas Ghose-minor mortgaged property to secure a loan-mortgage not valid-sum borrowed was not repayable either.minor can only become the beneficiary of a contract-so mortgage cannot be enforced and money got back-Minor can enforce a promissory note(Sharafat Ali vs Noor Muhammed)-no ratification of minor contracts- .

special treatment - . lunatics etc.Contracts y Restitution of consideration in case of an agreement subsequently proved void-not possible in case of a minor-minor is not stopped from pleading minority but has liabilities for necessities suppliedy In case of drunkards.