The Indian Contract Act, 1872. Flashcards
Defination of Offer
Section 2(a), When one person signifies to another his willingness to do or to abstain from doing anything with view of obtaining the assent of that other to such act or abstinence, he is said to make a proposal.
Defination of Acceptance/Promise
Section 2(b),” When the Person to whom the proposal is made signifies his assent thereto, Proposal is said to be accepted. The proposal, when accepted, becomes a promise”.
What is contract?
Section 2(h), An agreement enforceable by Law.
Essential of Valid Contract.
As given by Section 10 of Indian Contract Act, 1872.
1. Agreement.
2. Free Consent.
3. Competency of the parties.
4. Lawful.Consideration.
5. Legal Objects.
6. Not expressly declared to be void.
Voidable Contract
Section 2(i), An agreement which is enforceable by Law at the option of one or more parties thereto, but not at the option of the or others is a voidable contact.
Void Contract
Section 2(j), A contract which ceases to be enforceable by law becomes void when it ceases to be enforceable .
Illegal Contract
It is a contract which Law forbids to be made. The court will not enforce such a contract but also the connected contracts All illegal agreements are void but all void agreements are not necessarily illegal. Despite this, there is similarity between them is that in both cases they are void-ab-initio and cannot be enforced by Law.
Communication Of offer
Section 4, The communication of offer is complete when it comes to the knowledge of the person to whom it is made.
Consideration
Section 2(d), When at the desire of Promisor, the promisee or any other person has done or abstain from doing, or does or abstains from doing or promises to do or abstain from doing something, such act or abstinence or promise is called consideration for the promise.
Capacity to contract
Section 11, Every person is competent to contract who-
(A) has attained the age of Majority.
(B) is of sound mind and
(C) is not disqualified from contracting by any law to which he is subject.
Consent
Section 13, Two or more persons are said to consent when they agree upon the same thing in the same sense.
Free Consent
Section 14, Consent is said to be free when it is not caused by,
1. Coercion (15)
2. Undue Influence (16)
3. Fraud(17)
4. Misrepresentation (18)
5. Mistake (20,21,22)
Agreement
Section 2(e), Every promise and every set of promises, forming consideration for each other.
Contingent Contract
(Section- 31), “A contract to do or not to do something, if some event, collateral to such contract, does or does not happen.”
Contract of Insurance, indemnity and guarantee fall under this category.
