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Soumya V
Characteristics of law
Law is a body of rules Law is for the guidance or conduct of persons both human and artificial Law is imposed Law is enforced The State Content of law Law is made to serve some social, economic or political purpose
Purpose of law
Justice Continuity and uniformity Impartiality Rule of law
Introduction
The law relating to contracts is contained in The Indian Contacts Act 1872 which came into force on 1st September 1872. It applies to the whole of India except the state of Jammu and Kashmir. General principles of the law of contract is covered in Sec 1 75 Sec 124 to 238 covers some special contracts viz., bailment, indemnity and guarantee, pledge and agency The Act is not a complete and exhaustive law on all types of contracts Contracts not covered by the Act include those relating to partnership, sale of goods, negotiable instruments, insurance, bill of lading etc
Contract - Definition
Section 2(h) of the Indian Contract Act, 1872: A contract as an agreement enforceable by law Contract consists of essentially two elements: 1. Agreement 2. Its enforceability of law
Agreement
Section 2(e) defines agreement as "every promise and every set of promises, forming the consideration for each other.
Promise
Section 2(b) defines promise as: "when the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. Proposal when accepted, becomes a promise.
All contracts are agreements but all agreements are not contracts.
Agreement is a wide term and contract is a narrower term. Agreement is of two types - Social Agreement - Legal Agreement.
Classification of contracts
Voidable contract
According to section 2(i), an agreement which is enforceable by law at the option of one or more of the parties thereto, but not at the option of the other or others, is a voidable contract. Voidable when free consent is missing i.e., when the consent of one of the parties to the contract is obtained by coercion, undue influence, misrepresentation or fraud. When one party prevents the other from performing his promise When a party to the contract promises to do a certain thing within a specified time, but fails to do it
Void contract
Section 2(j) defines: A contract which ceases to be enforceable by law becomes void, when it ceases to be enforceable. A contract when originally entered into may be valid but may subsequently become void due to some reasons which are : Supervening impossibility (sec. 56) Subsequent illegality (sec, 56) Repudiation of a voidable contract. In the case of a contract contingent on the happening of an uncertain future event, if that event becomes impossible
Void agreement
An agreement not enforceable by law is said to be void *sec.2 (g)+. It is void ab-initio.
Unenforceable contract.
An unenforceable contract is one which is valid in itself, but is not capable of being enforced in a court of law because of some technical defect such as absence of writing, registration, requisite stamp, etc., or time barred by the law of limitation.
Offer
Section 2 (a) defines offer as when a 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 The person making the offer is known as the offeror, proposer, promisor and the person to whom it is made is called the offeree or proposee. When he accepts the offer, he is called the acceptor or promisee [Sec 2 (c) ]
Types of offer
Express Implied Specific General
4. An offer must be communicated 5. An offer can be specific or general 6. A statement of price is not an offer 7. An offer should not contain a term the non acceptance of which may be assumed to amount to acceptance 8. Offer with special conditions 9. Cross offer Vs. Counter offer
Acceptance
Acceptance is an expression by the offeree of his willingness to be bound by the terms of the offer. It is to an offer what a lighted match is to a train of gun powder
5. 6. 7. 8.
9.
Revocation:
As against the person who makes it - when it is put in the course of transmission to him, so as to be out of the power of the person who makes it As against the person to whom it is made - When it comes to his knowledge
References
N D Kapoor Elements of Mercantile Law Sultan Chand & Sons K Ramachandra, B. Chandrashekhara, Chandrakant Kanakatte - Legal Aspects of Business , Text and Cases - Himalaya Publishing House (1st edition)