INTRODUCTION TO

INDIAN CONTRACT
ACT
INDIAN CONTRACT ACT 1872.
INDIAN CONTRACT ACT
• What is a contract
• It must have an offer and acceptance
• It must have 3 c’s ( capacity, consent,consideration )
• It must not be prohibited by law
WHAT IS AN OFFER
• It must be precise; capable of being understood and communicated.
• It must not contain a clause that does away with acceptance.
• Special terms must be brought to the notice of the offeree.
• It need not be in writing though in immovable property contracts it
must be in writing.
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• Under certain circumstances an advertisement can become an offer.
• There is difference between an offer and invitation to an offer.
• An offer can be revoked before it is accepted.
• In this Digital world the offer has been communicated once it has entered the
computer of the offeree.
WHAT IS AN ACCEPTANCE
• An acceptance must be in response to an offer.
• It must be in the mode of prescribed.
• It must be made by the person to the whom the offer was made.
• It must be unconditional and unqualified.
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• Acceptance must be made with in the time provided
or reasonable time.
• Acceptance can be revoked before it reaches the offeree.
• In the case of cyber contracts acceptance has reached when
when it reaches the system of the offeree.
CONSIDERATION
• Consideration is the price of a contract.
• A contract with out consideration is void.
• Consideration must be decide by the parties themselves.
• Consideration must have some legal value in the eye of law.
• Stranger to a contract cannot claim.