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Nature of Contract
DEFINITIONS
A contract is an agreement made between two or more parties which the law will enforce. Sec 2(h) defines a contract as an agreement enforceable by law. Pollock: Every agreement and promise enforceable at law is a contract. Salmond: A contract is an agreement creating and defining obligations between the parties.
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CONTRACT
AGREEMENT+ ENFORCEABILITY
AGREEMENT
AGREEMENT [SECTION 2(e)]: An agreement means, Every promise or every set of promises, forming consideration for each other. PROMISE *SECTION 2(b)+: When the 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. Agreement= Offer + Acceptance
ENFORCEABILITY
Enforceability is the legal obligation which imposes upon a definite person or persons the necessity of doing or abstaining from doing something. An agreement which gives rise to a social obligation is not a contract. Agreement + Legal obligation Contract Agreement + Social obligation Contract
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EXAMPLES
A promises to sell his car to B for Rs. 10,000 received by him as the price of the car. This agreement gives rise to an obligation on the part of A to deliver the car to B. This agreement is a contract. A father promises to pay his son Rs. 1000 every month as pocket money. Later he refuses to pay. In this case the agreement is not a contract as social obligation is involved.
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Consensus ad idem-Meeting of minds. i.e. parties to the agreement must have agreed about the subject matter of the agreement in the same sense and at the same time. Unless there is consensus ad idem, there can be no contract. Obligation A legal tie which imposes upon a definite person(s) the necessity of doing or abstaining from doing a definite act(s).
An agreement must give rise to legal obligation or duty , in order to become a contract.
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Jus in personam- a right against or in respect of a specific person. Jus in rem a right against or in respect of a thing.
7. Agreement not declared void 8. Certainty and possibility of performance should not be vague or indefinite. 9. Legal formalities
statutary formalities, written, registered and stamped.
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CLASSIFICATION OF CONTRACT
Contracts can be classified according to theiri. Validity ii. Formation iii. Performance
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3. Illegal Agreement which trangresses some rule of public policy or which is criminal or immoral in nature. All illegal agreements are void but not vice versa. Collateral transactions of illegal agreements are also void. But it is not the true in case of void agreements.
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THANK YOU
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