• No results found

Indian Contract Act, 1872

N/A
N/A
Protected

Academic year: 2021

Share "Indian Contract Act, 1872"

Copied!
9
0
0

Loading.... (view fulltext now)

Full text

(1)

INDIAN CONTRACT

ACT, 1872

ASHISH BAHETY

ACA, CS, LLB

Shreeyash Carrer Academy 2

Preamble

WHEREAS it is expedient to define and

amend certain parts of the law relating to contracts ; It is hereby enacted as follows

This Act may be called the Indian Contract

Act,1872.

It extends to the whole of India *[except the

State of Jammu and Kashmir];

What is Contract ?

SECTION 2 (h)

“An agreement enforceable by law is a

contract”.

 Contract = Agreement + Enforceability at

(2)

Shreeyash Carrer Academy 4

What is Agreement ?

Section 2(e)

Every promise and every set of promises,

forming the consideration for each other, is an agreement.

Promise/(s) Promise/(s) = Agreement In exchange for each other

Shreeyash Carrer Academy 5

What is Promise ?

When a person to whom the proposal is

made, signifies his assent there to, the proposal is said to be accepted.

A proposal, when accepted, becomes a

promise.

Promise = Proposal/Offer + Acceptance

What is Proposal ?

 When one 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, he is

(3)

Shreeyash Carrer Academy 7

What is Acceptance ?

When a person to whom the proposal is

made, signifies his assent thereto, the proposal is said to be accepted.

A proposal, when accepted, becomes a

promise.

Shreeyash Carrer Academy 8

What agreements are

contracts?

All agreements are contracts if they are made

by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void.

Contract = Consent + Competency +

Consideration + Object.

What is Consent ?

Two or more person are said to consent

when they agree upon the same thing in the same sense.

(4)

Shreeyash Carrer Academy 10

What is Free Consent ?

Consent is said to be free when it is not caused by -1. Coercion, 2. Undue Influence 3. Fraud 4. Misrepresentation 5. Mistake

Shreeyash Carrer Academy 11

Who are Competent to

Contract?

Every person is competent to contract who is

of the age of majority according to the law to which he is subject, and who is sound mind and is not disqualified from contracting by any law to which he is subject.

Competency = Age + Sound Mind + No

Disqualification

What is Consideration?

“When at the desire of the promisor,

promisee or any other person has done or abstained from doing , or, does or abstains from doing, or, promises to do or to abstain

(5)

Shreeyash Carrer Academy 13

Lawful Object & Consideration

The consideration or object of an agreement

is lawful, unless -It is forbidden by law; or is of such nature that, if permitted it would defeat the provisions of any law or is fraudulent; of involves or implies, injury to the person or property of another; or the Court regards it as immoral, or opposed to public policy.

In each of these cases, the consideration or

object of an agreement is said to be unlawful.

Every agreement of which the object or

consideration is unlawful is void.

Shreeyash Carrer Academy 14

Essentials of a Valid Contract

1. Intention to create legal relationship. 2. Lawful object

3. Agreement not expressly declared void 4. Proper offer and it s acceptance 5. Free Consent

6. Capacity of parties to contract 7. Certainty of meaning. 8. Possibility of performance.

Essentials of a Valid Contract

9. Lawful consideration 10. Legal formalities

(6)

Shreeyash Carrer Academy 16

Relationship

The parties entering into a contract must

have an intention to create a legal relationship.

If there is no intention to create a legal

relationship, that agreement cannot be treated as a valid contract.

Generally there is no intention to create a

legal relationship in social and domestic agreements.

Shreeyash Carrer Academy 17

2. Lawful Object

The objective of the agreement must be

lawful. Any act prohibited by law will not be valid and such agreements cannot be treated as a valid contract.

A rents out his house for the business of

making bomb, the acts performing there are unlawful. Hence such agreement cannot be treated as a valid contract.

3. Agreement

not

expressly

declared void

Section 24 to 30 specify certain types of

agreement which have been expressly declared void.

(7)

Shreeyash Carrer Academy 19

acceptance

There must be two or more parties.

One person cannot make an offer and accept it. The offer must be clear and properly

communicated.

Similarly proper and unconditional acceptance

must be communicated to the offerer.

Proper offer and proper acceptance should be

there to treat the agreement as a contract which is enforceable by law.

Shreeyash Carrer Academy 20

5. Free Consent

Consent is said to be free when it is not caused

by (i) coercion, (ii) undue influence (iii) fraud, (iv) misrepresentation, or (v) mistake.

If the contract made by any of the above four

reason, at the option of the aggrieved party it could be treated as a void contract.

An agreement can be treated as a invalid

contract when the consent of the parties are not free or under any undue influence, fear or pressure etc.

6. Capacity of parties to contract

Parties entering into an agreement must be

competent and capable.

Ex, If A agrees to sell Taj Mahal, is he capable &

competent ?

If any of the party is not competent or capable of

entering into the agreement, that agreement cannot be treated as a valid contract

Every person is competent to contract

o the age of majority o who is of sound mind, and

(8)

Shreeyash Carrer Academy 22

7. Certainty of meaning

 Wording of the agreement must be clear and not

uncertain or vague.

 Suppose Dhoni agrees to sell 500 Balls to Kallis.

But, what kind of ball is not clear. So on the ground of uncertainty, this agreement stands void.

 If the meaning of the agreement can be made

certain by the circumstances, it could be treated as a valid contract.

 For example, if Dhoni and Kallis are sole trader of

tennis ball, the meaning of the agreement can be made certain by the circumstance and in that case, the agreement can be treated as a valid contract.

Shreeyash Carrer Academy 23

8. Possibility of performance

If the act is impossible of performance,

physically or legally, the agreement cannot be enforced by law.

Impossible agreements like one claims to run

at a speed of 100km/hr or take 7 wickets in an over. would not create a valid agreement.

In essence, there must be possibility of

performance must be there to create a valid contract.

9. Lawful consideration

Quid Pro Quo - An agreement must be supported by a consideration of something in return.

Agreement must be supported by some type of service or goods in return of money or goods.

(9)

Shreeyash Carrer Academy 25

10. Legal formalities

 The contract act does not insist that the agreement

must be in writing, it could be oral.

 But, in some cases the law strictly insist that the

agreement must be in writing like agreement to sell immovable property must be in writing and should be registered.

 These agreement are valid only when they fulfill the

formalities like writing, registration, signing by the both the parties are completed.

 If these legal formalities are not completed, it cannot

be treated as a valid contract.

Thank You

“ You cannot teach a man

anything; you can only help him to find it within himself.”

References

Related documents

Alternatively, water resistant concrete can be used but as car parks are large open structures subject to movement and vibration, it is dicult to ensure the decks are

III Selim, who got the music education, especially in his princedom, learned to play the tanbur by Tanburî İsak, to play Ney by Ali Nutki Dede with his music school, accepted as

The teaching done here is based on Vygotskys idea that learning is most efficient when a student is given just enough information that is enough to boost the students ability to

Through your own way of guidance A message will come to you… in a way You may not expect…… It will be a message of great hope and. Faith… it is a message

The next step was to use the task characteristics, communication and human resource practices factors as input variables to identify clusters based on work designs of BPO

We examined the associations of physical activity, assessed both by self-report (using data on leisure time physical activity (LTPA) collected on 4 occasions over a 28-year period)

Samples obtained by both pro- cessing methods (CS and RS) show similar micro structures (bimodal grain size with similar amount of Cu-rich secondary phase in grain

Data Center-Centric Contact Center Infrastructure SIP Data center-centric SIP model where all of the hosted contact center’s services are in a shared SIP-based