LAW OF CONTRACT

WHAT IS LAW OF CONTRACT?
Body of law or a set of law that governs oral and written agreements and subjects, such as agency relationship, commercial paper, and business organization, provided such agreements fulfilled the requirements under law.

WHAT IS CONTRACT?
1.

An agreement enforceable by law (defined under Section 2 (h) of Contract Act 1950) A binding agreement between two or more parties for performing, or refraining from performing, some specified act(s) in exchange for lawful consideration.

2.

REFRESH YOUR MIND!!!

What is the difference between contract and agreement?

Agreement may not intend to have legal relation

Some agreement might consist illegality

HOW TO MAKE A CONTRACT BINDING AND VALID?

ANYBODY CAN TELL ME HOW TO MAKE A CAKE?

IF ONE OF
THE INGREDIENTS IS MISSING THEN YOUR CAKE WILL BE LIKE THIS!!

A cake

will not be a cake without the right ingredients«

If

you agree with this statement, please raise up your hands .

The

same goes to contract. To have a valid contract we need to know the right ingredients! The ingredients are: offer acceptance intention to have legal relation consideration capacity certainty consent

OFFER!
What do you understand about offer? discounted shoes buy 1 free 2 buy 3 free Me 30%- 80% sale!!! Year End Sales!

Section

2 (a) of Contract Act 1950

³ when one person signifies to another his willingness to do or not to do something, with a view to get/obtain consent from the other party to the act, he is said to make a proposal´

Sound a little bit complicated right?..... Those who agree that this definition is complicated, please blink your eyes twice«..

LET·S SHARE YOUR FINDINGS«..

ANYONE WOULD LIKE TO SHARE DEFINITION OF OFFER THAT YOU FOUND«..

My
Expression

definition«..

of willingness to enter into contract with the intention to be bound in case if such willingness accepted by the other party«.

Those

who express the willingness known as ´offerorµ and those who accept is called as ´offereeµ definition is similar with the words under section 2 (a) of Contract Act 1950

This

ISSUE!!!
How

are we going to determine that the situation is offer or just an advertisement?

There

are two situation that similar with offer that we call it as MERE OFFER

In

law, there are 2 types of offer namely:-

VALID OFFER

MERE OFFER

To

have a contract we need to have valid OFFER determine whether the offer is valid or not, we have to differentiate between valid and mere offer the situations or circumstances of mere offer exist in a scenario , THEN valid offer will not exist the circumstances of the scenario is

To

If

If

WHAT ARE THE SITUATIONS/CIRCUMSTANCES
THAT INDICATES MERE OFFER?

Mere offer means an invitation to deal with the product or subject matter 3 situations of mere offer:-

1. MERE OFFER
a word that simply present the intention or aims of the parties without any intention to bind the transaction. Re FICKUS CASE 2. MERE INFORMATION a statement shows the information about the subject matter such as price, colour, capacity and etc without intention to bind the statement HARVEY v FACEY

3.

INVITATION TO TREAT (ITT) ITT is the situations where the offeror invites peple to make further dealing with the business. ITT is not an offer but invitation to make a valid offer. Divided into 3 circumtances:display goods in shop windows display goods on shelf public advertisement

HOMEWORK«««..

1.

3 SITUATIONS WHERE OFFER CAN BE REVOKED. WHAT IS ACCEPTANCE?

2.

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