INDIAN CONTRACT

ACT1872

The act deals with

General principles of the law of contract
Some special contracts.
It consists of a number of limiting
principles, subject to which the parties
may create rights and duties for
themselves which the law will uphold.

As per William Anson

The law of contract is intended to ensure
that what a man has been led to expect
shall come to pass, and that what has
been promised to him shall be performed.

What is a contract?
An agreement made between two or more
parties which the law will enforce.
Section 2(h)
AN AGREEMENT ENFORCIABLE BY LAW

 CONTRACT = AGREEMENT +
ENFORCEABILITY BY LAW
AGREEMENT = OFFER + ACCEPTANCE
Every promise or every set of promises forming
consideration for each other is an agreement.

Consensus ad idem
Meeting of the minds of the parties in full
and final agreement.
i.e the parties to the agreement must have
agreed about the subject matter of the
agreement in the same sense and at the
same time.

cases
A who owns two horses named Rajhans
and Hansraj , is selling horse Rajhans to B
. B thinks he is purchasing horse Hansraj.
A says to B, will you purchase my blue
car for Rs, 10000 ? And B says yes to it.

Obligation
A Legal tie which imposes upon a definite
person or persons the necessity of doing
or abstaining from doing a definite act or
acts.
An agreement which gives rise to a social
obligation is not a contract.

cases
A agrees to sell his car to B for Rs.
50,000.
Is this agreement a contract?

A father promises to pay his son Rs. 100

every month as pocket allowance but later
refuses to pay.
Can the son recover the money?

conclusion

All contracts are agreements but all

agreements are not contracts.

Essential elements of a
valid contract
1) Offer and acceptance
The terms of offer must be definite and acceptance
must be absolute and unconditional

2) Intention to create a legal relationship.

Balfour Vs. Balfour
Special clause in an agreement.

3) Lawful consideration
(An advantage or benefit moving from
one party to another)
4) Capacity of parties competency
Is of the age of majority
Is of sound mind
Is not disqualified by law

5) Free and genuine consent

Fraud, undue influence , misinterpretation etc.

6) Lawful object
Illegal , immoral etc.

7) Agreement not declared void

8) Certainty and possibility of performance
Vague agreements cannot be enforced
A agrees to sell to B 100 tons of oil
This agreement is void. Why?

O agreed to purchase a motor Van from S on hire

purchase , price was to be paid over 2 years
A agrees to put life into dead body of Bs wife.

9) Legal formalities.
written , registered , in presence of witnesses.(sec.
10 para 2)