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Chapter 2-Law of Contract

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10 views14 pages

Chapter 2-Law of Contract

Uploaded by

rupakhaha
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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2

LAW OF CONTRACT

By Advance Saraswati Prakashan Pvt. Ltd


Tinkune, Kathmandu
01-4790359, 9851103159, 9851103169
COURSE CONTENT

 Meaning and definition of contract

Essentials elements of valid contract


Classification of contract
the law relating to contract in Nepal ( Part-V of the Muluki Civil
Code, 2074)

11/09/2024 2
MEANING AND DEFINITION OF CONTRACT

 Simply, a contract is a legal agreement created by an


exchange of promises between two parties to do or not to
something.
 In other words. An agreement made between at least two
parties to do or not to do something and creating contractual
rights and obligations for themselves , which the law will
enforce is called a contract.
 According to Henry Campbell Black -"An agreement
between two or more parties creating obligations that are
enforceable or recognizable at law.”
 Contract is intended to ensure that ,as far as possible ,
promises made by the parties are fulfilled and obligations
prescribed by the agreement of the parties are enforced.
ESSENTIAL ELEMENTS OF
VALID/ENFORCEABLE CONTRACT
• The following are the elements for the contract to be valid:
1. Two parties
7. Lawful object
2. Offer and
acceptance
8. Agreement not
3. Intention to ESSENTIAL expressly declared
create legal ELEMENTS void
relationship OF VALID 9. Clarity and
4. Free consent
CONTRACT certainty
5. Contractual 10.Possibility to
capacity perform
/competent
6. Lawful
parties 11.Legal formalities
Consideration
CLASSIFICATION OF CONTRACT
The following are the types of contract under business law:
Manager/Owner

On the Basis On the Ground of


On the basis
of the Mode of
of Validity/
Performance Creation of
Enforceability
and Liability Contract
• Legal/Valid • Express
• Unilateral Contract
contract. Contract.
• Void contract • Implied
On the • Bilateral Contract
• Voidable Contract On the Ground of
Ground of the
Contract Execution/ Performance
• Illegal Nature of the of the Contract
Offer
Contract
• Unenforceabl • Contract in general • Executed Contract.
e contract. and contract in • Executory contract.
particular • Partly executed and
• Contingent Contract partly Executory
CONTRACT RELATED PROVISIONS ON MULUKI DEWANI
SAMHITA (COUNTRY CODE ) 2074
HISTORICAL BACKGROUND OF NEPALESE CONTRACT LAW
 In Nepal, this law was formally born in the Rana regime
subsequently it got opportunity to be developed as a separate
law after the advent of democracy in 2007 B.S.
 Before 1910 there were majority of different kinds of usages
and customs in the Nepalese society without the clear written
or codified laws by which the society was governed.
 In 1910 B.s the Country Code came into existence to regulate
people’s behavior in the period of the late King Surendra
Bikram Shah.
 The Code recognized concept of contract among other things
by the incorporating different provisions in respect of lending
and borrowing money under the Chapter of Sahu ra Ashami ko
MAJOR PROVISIONS OF THE NEPALESE CONTRACT AND OTHER
CONTRACTUAL LIABILITY RELATED LAW (CIVIL CODE, 2074 B.S)

The major provisions of the Contract which are provided by the


existing contract law are as follows:
 Definition
 Consideration
 Contracting Parties
 Autonomy
 Contract to be Deemed to have been Concluded
 Place of Contract
 Offer and Acceptance
 Contract According to the Offer Made to Public
 Indirect Contract
CONTD…
 Contingent Contract
 Void and Voidable Contracts (Agreements)
 Contracts of Guarantee, Indemnity and Subrogation
 Contract of Bailment
 Contract of Pledge/Pawn
 Contract of Sale of Goods (Sec, 545-561 of MDS 2074)
 Contract of Agency
 Contract of Carriage of Goods
 Time, Manner and Place for Performing Contract
 Performance of Contract and Obligations Arising Out
Thereof
 Breach of Contract and Remedies
 Observance of Law in Force
 Limitation
9

Assignment
Brief Answer Questions
1. Define term of contract.
2. Point out any two essential elements of a valid contract.
3. What do you mean by offer?
4. What do you mean by acceptance?
5. Define consideration.
6. What do you mean by free consent?
7. When an agreement is enforceable by law?
8. Mention various types of contract.
9. Explain any two features of contract.
10.Point out major function of contract.
Assignment
■ Short Answer Questions
1. What is contract? What are the essential elements of a valid
contract?
2. Discuss about various types of contract.
3. Differentiate between void and voidable contract.
4. Write short notes on:
a. Valid Contract
b. Void Contract
c. Voidable Contract
d. Contingent Contract
e. Quasi Contract
Assignment
■ Long Answer Questions
1. “ All agreements are not contracts but all contracts are
agreements.” Explain the statements on the basis of the
provisions of the Contract Act.
2. Define law of contract. Explain essential elements of a valid
contract.
3. “Offer and acceptance are two pillars of a contract by which
the expectations of the parties are included in legal
recognition.” On the light of above statement state the rules
of a valid acceptance.
Case Study/ Situational Analysis

Please go through the book of Advance Saraswati


Prakashan for relevant Case Study
Any Question?

Contact Us for More Information


Tinkune, Kathmandu
01-4750359, 9843262646
www.advancesaraswati.com
[email protected]
11/09/2024 14

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