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INTRODUCTION TO CONTRACT LAW The law of contract is a set of rules governing

the relationship, content and validity of an agreement between two or more persons (individuals, companies or other institution) regarding the sale of goods, provision of services or exchange of interests or ownership. Contract law has been more formally defined as a promise or set of promises which the law will enforce.

CLASIFICATION OF CONTRACT
1. Contracts by deed : A deed is a formal legal document signed, witnessed and delivered to effect a conveyance or transfer of property or to create a legal obligation or contract. 2. Simple contracts Contracts which are not deeds are known as simple contracts. They are informal contracts and may be made in any way - in writing, orally 1. Bilateral contracts A bilateral contract is one where a promise by one party is exchanged for a promise by the otheR EXAMPLE:- Sale of goods contract The Buyer promises to pay the price The Seller promises to deliver the goods 2. Unilateral contracts A unilateral contract is one where one party promises to do something in return for an act of the other party, as opposed to a promise EXAMPLE :- where X promises a reward to anyone who will find his lost wallet. The essence of the unilateral contract is that only one party, X, is bound to do anything. No one is bound to search for the lost wallet, but if Y, having seen the offer, recovers the wallet and returns it, he/she is entitled to the reward

KINDS OF CONTRACT
Executed Contract: Where both the parties have performed their obligation, it is an executed contract. Even when one party to the contract has performed his share of the obligation, the contract is executed though to the other party is still under an outstanding obligation to perform his part of the promise. Executory Contract: Here neither party to the contract has performed his share of the obligation, for example, both the parties have yet to perform their promises, the contract is executory. In an executed contract one party has already performed his part of he agreement while the other party has to perform his par. In an executory contract both the parties have to perform their mutual promises and the fact that they have to perform their parts of the contract does not affect the validity of the contract.

6. Express Contract: When the terms of a contract are reduced in writing or are agreed upon by spoken words at the time of its formation, the contract is express.

7. Implied Contract: When the proposal or acceptance of any promise is made otherwise than in words, the promise is said to be implied.. 8. Quasi-Contract: Certain relations resemble those created by a contract. Certain obligations which are not contracts in fact but are so in the contemplation of law. These are called Quasi-Contracts. 13. Statutory Contract: When all or some of the terms and conditions of contract are statutory then the entire contract, would be regarded as statutory contract.

The essential elements of a contract are:


1. Agreement An agreement is formed when one party accepts the offer of another and involves a "meeting of the minds". 2. Consideration Both parties must have provided consideration, ie, each side must promise to give or do something for the other. 3. Intention to create legal relations The parties must have intended their agreement to have legal consequences. The law will not concern itself with purely domestic or social agreements. 4. Form In some cases, certain formalities (that is, writing) must be observed. 5. Capacity The parties must be legally capable of entering into a contract. 6. Consent The agreement must have been entered into freely. Consent may be vitiated by duress or undue influence. 7. Legality The purpose of the agreement must not be illegal or contrary to public policy.

ENFORCEABILITY OF A CONTRACT :1. Void contracts AN AGREEMENT NOT INFORCEABLE BY LAW.illegal contract.Any goods or money obtained under the agreement must be returned.
y

2. Voidable contracts aik prty manay dusri nae,galat byani,jhoot ki sy jo cntrct banay. 3. Unenforceable contracts
o

An unenforceable contract is a valid contract but it cannot be enforced in the courts if one of the parties refuses to carry out its terms. Items received under the contract cannot generally be reclaimed.

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