Nature of Contracts (ICA, 1872)

Question 1

Contract

Answer 1

An agreement enforceable by law.
Agreement = Offer/Proposal + Acceptance + Consideration

Question 2

Distinction b/w ‘agreement’ and ‘contract’

Answer 2

1. Meaning
2. Scope
3. Legal obligation
4. Nature

Question 3

Essentials of valid contract (as per Sec 10)

Answer 3

1. Agreement
2. Free consent
3. Competency of parties
4. Lawful consideration (quid pro quo)
5. Legal object
6. Not expressly declared to be void

Question 4

‘Essential’ elements of valid contract

Answer 4

1. 2 parties
2. Intention to create legal relation
3. Fulfilment of legal formalities
4. Certainty of meaning (consensus ad idem)
5. Possibility of performance

Question 5

Types of contracts (Validity)

Answer 5

1. Valid - Binding and enforceable
2. Void - Can’t be enforced by law
3. Voidable - Enforceable at option of 1 party

` Any form not-free consent;

` When there is a contract formed and one of the parties refuses or disables themselves from performing their promise;

`When a party doesn’t end up performing their promise in time.

4. Illegal
5. Unenforceable - Technical defect

Question 6

Distinction b/w ‘void’ and ‘illegal’ c.s

Answer 6

1. Scope
2. Nature
3. Punishment
4. Collateral agreement (related)

Question 7

Distinction b/w ‘void’ and ‘voidable’ c.s

Answer 7

1. Meaning
2. Enforceability
3. Cause
4. Performance of contract
5. Rights

Question 8

Types of contracts (formation)

Answer 8

1. Express - Words or writing
2. Implied - Action or conduct ; includes tacit
3. Quasi - Legal obligation imposed by the law
4. E-contract

Question 9

Types of contracts (performance)

Answer 9

1. Executed
2. Executory - Unilateral & Bilateral