5. Capacity of parties ± competency (11&12) 5.4. 4. Agreement not declared viod (24-30 &56) 8.Communication Mode of communication . Time of revocation .Definition ± 2(a) 3.Agreement 4. 3. 6. Definition View to obtain assent An agreement Assumption regarding enforceable acceptance Statement of price is not by law ± 2(h) offer Every promise & every set of promises forming consideration of each other ± 2(e) Legal rules 1. Intention to create legal relation 3. Absolute & unqualified Communicated to the offeror As per mode prescribed Within reasonable time Intention to fulfill terms Given my party to whom made Before lapses/withdrawn Not implied from silence 3. 5. 2. Certainty and possibility of performance (29) 9. Legal formalities (10)  5. Formation ± Express/ Implied/Quasi Performance Executed/ Executory Unilateral Bilateral . Lawful consideration (23 & 25) 4.3. etc Communication 1. Lawful object (23) 7. Mode of revocation .Offer Specific/ General (Offer + Acceptance) Consensus ad idem 2. Classification Validity ± Void/Voidable 6. Free and genuine consent(14) 6. 7.6. 8. unambiguous. When complete . Enforceability  Essentials 1. Acceptance Express/ Implied Express/ Legal rules Implied Capable of being accepted & give rise to legal relations Definite. Offer & Acceptance 2.

immoral or opposed to public policy . Definition 2(d) When at the desire of the promisor. the promisee or any other person has done or abstained from doing or does or abstains from doing something. Exceptions ± contract without consideration Not void Love and affection ± 25(1) Compensation for voluntary services ± 25(2) Promise to pay a time-barred debt ± 25(3) Agency ± 185 Charitable subscriptions 2. Legal Rules Must move at the desire of the promisor May move from promisee or any other person May by an act. Need for consideration Gratuitous promises are made rashly and without due deliberation. present or future It need not be adequate It must be real and not illusory Must be something the promisor is not already bound to do Must not be illegal.4. abstinence. forbearance or return promise It may be past. such act or abstinence or promise is called a consideration for the promise Act Abstinence/ forbearance Consideration Return promise 3. 1.

Other persons Alien enemy Foreign sovereigns/representatives Corporations Insolvents Convicts 2. Incompetent Minors . Unsound mind Disqualified by law 4. Minor¶s agreement Void and inoperative ab initio Can be beneficiary Agreements cannot be ratified at majority Benefits received need not be compensated Can always plead minority Cannot enter into partnership Cannot be declared as insolvent Can be an agent Parents not liable for his contracts 68 4.Capacity to contract 5. Competency Majority Sound mind Not disqualified 3. Unsound mind Contract void (68) 11 Capacity 1. Minor¶ liability for necessities Necessary goods Services rendered .

Flaw in Consent Coercion 15 Undue influence 16 Fraudulent 17 Of the country Innocent 18 Foreign country Misrepresentation Mistake Law 21 Bilateral Fact 20 Unilateral 22 As to nature Mistake as to subject matter Mistake as to possibility of performance Physical impossibility Legal impossibility As to person Existence Identity Quality Quantity Title Price .

If it is fraudulent 4. Forbidden by law 2. . it would defeat the provisions of law 3. If it involves or implies injury to person or property of another 5. Where the court regards it as opposed to public policy. If permitted. If courts regards it as immoral 6.Unlawful consideration/object (23) 1.

Agreements Opposed to Public Policy Agreements: ‡ of trading with enemy ‡ to commit crime ‡ which interfere with administration of justice ‡ in restraint of legal proceedings ‡ trafficking in public offices and titles ‡ tending to create interest opposed to duty ‡ in restraint of parental rights ‡ restricting personal liberty ‡ in restraint of marriage ‡ marriage brokerage ‡ interfering with marital duties ‡ to defraud creditors or revenue authorities ‡ in restraint of trade. .

to illegal agreement becomes tainted 2. In case of equal guilt. The collateral transactions. No action can be taken: 1. for recovery of money paid/property transacted 2. . for breach of agreement 3. the position of defendant is better then the plaintiff.Effect of illegality 1.

Sign up to vote on this title
UsefulNot useful