Scribd
Upload
116 views3 pages

LAW Sidd Project

The document discusses the key elements of contract law in India. It outlines the main sources of contract law as the Indian Contract Act of 1872. The Act defines a contract as an agreement that is enforceable by law, requiring elements such as offer and acceptance, lawful consideration, capacity and consent of parties, lawful object, certainty, and possibility of performance. The summary provides an overview of the essential components that make an agreement legally binding as a contract under Indian law.

Uploaded by

Naitik Pahuja
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
116 views3 pages

LAW Sidd Project

The document discusses the key elements of contract law in India. It outlines the main sources of contract law as the Indian Contract Act of 1872. The Act defines a contract as an agreement that is enforceable by law, requiring elements such as offer and acceptance, lawful consideration, capacity and consent of parties, lawful object, certainty, and possibility of performance. The summary provides an overview of the essential components that make an agreement legally binding as a contract under Indian law.

Uploaded by

Naitik Pahuja
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

INTRODUCTION

Business transitions involve promises made by the parties to be performed at different times. The law of
contract forms the basis of the commercial/business law. It is concerned with enforceability of promises. The
object of law of contract is to introduce certainty and definiteness in business transaction. It ensures that the
expectations created by the promises of the parties are fulfilled and obligations created by the agreement are
enforced.

SOURCES OF LAW OF CONTRACT

 Indian Contract Act, 1872 is the main source of law regulating contracts in India as subsequently
amended.
 The Indian Contract Act, 1872 came into force on the 1st day of September,1872
 It applies to whole of India except the state of Jammu and Kashmir

What is a Contract?

Section 2(h) defines the term contract as “any agreement enforceable by law”

Contract = Agreement + Legal Obligation

Contract

Legal
Agreement
Enforceability

Offer Acceptance
ESSENTIAL ELEMENTS OF CONTRACT

According to Section 10 “ All agreements are contracts, if they are made by free consent of the parties,
competent to contracts, for a lawful consideration with a lawful object, and not hereby expressly declared to be
void”

Offer and Acceptance  There must be “lawful offer” and “lawful acceptance” of the
offer, thus resulting in an agreement.
Intention to create legal  Parties to an agreement should intend the agreement to create
relations legal obligations
 Agreement of social or domestic nature do not contemplate a
contract
 In commercial agreements an intention to create legal relations
is presumed
 Case law :- Balfour VS Balfour
Lawful Consideration  It means “something in return”
 It is the price paid for the promise of the offer
 It may consist of money, an act or abstinence, promise to do or
not to do something.
 It may be past, present or future.

Capacity of Parties  The parties to an agreement must be competent to contract .i.e.


i) The parties must be major.
ii) The parties must be of sound mind.
iii) The parties must not be disqualified by law from
contracting.
Lawful Object  Object means purpose.
 The object will be considered unlawful if is forbidden by the
law or is fraudulent or is immoral or opposed to public policy.

Free Consent  Parties should enter into contracts out of their free will and
consent.
 Consent is said to be free, then it is not affected by the
following:
i) Coersion
ii) Undue influence
iii) Fraud
iv) Misrepresentation
v) Mistake
Certainity  Terms of the contract should be definite and not vague.
 Agreement, the meaning of which is not certain or capable of
being certain made certain are void.
Possibility of Performance  Agreement to do an impossible act is void.
 Example: A agrees with B to discover treasure by magic.
Writing and Registration  A contract may be written or oral.
 Contracts may be implied.
 However, if there is a provision in The Indian Contract Act that,
for a contract to be valid, it must only be in writing/registered,
then this formality of writing and registration must be followed.
Agreement Not Expressly  The Contract Act has expressly declared certain agreements to
Declared Void be void.
 Example: Agreements in restraint of trade, agreements in
restraint of marriage etc.

You might also like