Course Code : HSC201A

Course Title : Law for Engineers

Course Leaders:
Adv. Chidanand G Kulkarni
cgk1963@gmail.com

Namrata Kabra
namrata.kabra12@gmail.com
Ruchira Negi
ruchiranegi@ymail.com
Agam Sharma
agam2995@gmail.com

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©M. S. Ramaiah University of Applied Sciences Directorate of Transferable Skills and Leadership Development
 Course Details

 Course: Law for Engineers

 Department: Directorate of Transferable Skills and

Leadership Development

 Head of the Department: Mr. Jyothi Shankar G

 Faculty: Engineering & Technology

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©M. S. Ramaiah University of Applied Sciences Directorate of Transferable Skills and Leadership Development
 Session No. 3
Introduction to Contracts
At the end of this session, students will be able to:

 Explain the basic concepts of Contract like:

 Meaning of Contract
 Formation of Contract and essentials of a valid contract
 Terms of Contract, and
 Kinds of Contract

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©M. S. Ramaiah University of Applied Sciences Directorate of Transferable Skills and Leadership Development
 Object of Indian Contract Act
• To define and amend certain parts of the law relating to
contract

What is a Contract?

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©M. S. Ramaiah University of Applied Sciences Directorate of Transferable Skills and Leadership Development
 What is a Contract?

“An agreement enforceable by law is a contract.”

Two essentials:
i. Agreement: Every promise and every set of
promises forming consideration for each other.

ii. Enforceable by law: A contract fulfilling various

conditions of a valid contract is enforceable by
law.

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©M. S. Ramaiah University of Applied Sciences Directorate of Transferable Skills and Leadership Development
 Conditions (Essentials) of a Valid Contract

 Lawful Consideration: It is price of the promise and is a

condition pre-requisite for a contract. Exceptions : Natural
love & affection, gifts.

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©M. S. Ramaiah University of Applied Sciences Directorate of Transferable Skills and Leadership Development
 Conditions (Essentials) of a Valid Contract

 Capacity to Contract (Persons competent): Every person is

competent and has a capacity to enter into a contract except
for the following incompetent persons:

i. Minors

ii. Insane person

iii. Persons disqualified by law, eg. Insolvent,

Pardanashin women, life convict etc.

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©M. S. Ramaiah University of Applied Sciences Directorate of Transferable Skills and Leadership Development
 Conditions (Essentials) of a Valid Contract
 Free Consent: A consent is said to be free when it is not
caused by -
a. Coercion
b. Undue Influence
c. Fraud
d. Misrepresentation
e. Mistake

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©M. S. Ramaiah University of Applied Sciences Directorate of Transferable Skills and Leadership Development
 Conditions (Essentials) of a Valid Contract
 Lawful Object: An object is lawful except if it is -
a. Forbidden by Law
b. Defeat any Law
c. Fraudulent
d. Injurious to any person or property
e. Immoral and opposed to public policy

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©M. S. Ramaiah University of Applied Sciences Directorate of Transferable Skills and Leadership Development
 Formation of Contract:

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©M. S. Ramaiah University of Applied Sciences Directorate of Transferable Skills and Leadership Development
 Formation of Contract:

There are two stages of formation of Contract:

OFFER ACCEPTANCE
Once an offer is made by one party, the other party has an
option to-
Contract
No Contract

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©M. S. Ramaiah University of Applied Sciences Directorate of Transferable Skills and Leadership Development
 Invitation to offer:
An offer to make an offer

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©M. S. Ramaiah University of Applied Sciences Directorate of Transferable Skills and Leadership Development
 Terms of Contract:

1. Implied terms
2. Express terms

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©M. S. Ramaiah University of Applied Sciences Directorate of Transferable Skills and Leadership Development
 Kinds of Contract:
1. Valid: Perfect Contract in which all the essentials are
fulfilled.
2. Void: A void Contract is as good as no Contract. Examples:
An agreement in which a part of consideration or object is
unlawful, an agreement without consideration, agreement
by incompetent person, agreement in restraint of marriage,
trade or legal proceedings, uncertain agreements,
agreement by way of wager etc.
3. Voidable: An imperfect contract that becomes void or valid
only at the option of injured party is known as voidable
contract. Example: In cases of coercion, undue influence,
fraud, misrepresentation, unconscionable terms or in cases
of breach of contract.

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©M. S. Ramaiah University of Applied Sciences Directorate of Transferable Skills and Leadership Development
 Summary

• An agreement enforceable by law is a contract

• The essentials of a valid contract are lawful
consideration, capacity to contract, free consent, and
lawful object
• The two stages of formation of contract are offer and
acceptance
• The terms of contract may be either implied terms or
express terms

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©M. S. Ramaiah University of Applied Sciences Directorate of Transferable Skills and Leadership Development