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Different kinds of 

agreements Agreements enforceable by law are contracts.

 Void agreements which are not enforceable by law Voidable contracts which can be avoided at the option

of one of the parties to the contractIllegal agreements which are contrary to law

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 Agreements

 An agreement arises when one of the partiesmake a proposal or offer and the other partyaccepts the same.

Offer means when one of the parties signify hiswillingness to do or abstain from doing any actwith a view to obtain the assent of that other tosuch act or abstinence.

Invitation to offer where the person gives someinformation with a view to inviting anotherperson to make an offer.

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Other important requierements forcreating contractual obligations

Intention to create legal relationship. Communication of offer is necessary. There should not be cross offers. Offers may be specific and general , standing or

continuing offer (tenders) There must be acceptance of the other party.  A proposal when accepted becomes a promise. Before acceptance neither party is bound but after

acceptance both parties are bound.  Acceptance should be communicated.  Acceptance must be absolute and unqualified.  Acceptance should be in the usual / prescribed manner.  Acceptance should be made while the offer is still

subsisting.

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Revocation of Offer and Acceptance

 An offer may be revoked any time beforethe communication of its acceptance iscomplete as against the proposer, but not

afterwards.

The communication of an acceptancewhen it is put in the course of 

transmission against him, so as to be outof the power of the acceptor.

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Modes of revocation of offer andacceptance

Offer

* By notice of revocation

By lapse of time

By failure to fulfil a condition precedent

By the death or insanity of the offerer

 Acceptance-before the communication of acceptance is reached the offerer or theproposer, the same may be revoked byacceptor.

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Standard form of contracts  – Essential requirements.

There should be a contractual document.

There should be no misrepresentation.

There should be reasonable notice of contractual terms.

Notice should be contemporaneous with the contract.

The terms of the contract should be reasonable.

Strict interpretation of exemption clause.

There should be no fundamental breach of contract.

Non contractual liability exists.

Liability towards third parties exists.

Statutory protection would be available to the weakerparty.

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Promissory estoppel

When one party has made a promise orgiven an assurance and the other partyhas acted to his prejudice on the same,

the former would be liable by the promisemade by him on the basis of applicationof law of estoppel.

The doctrine is applicable as much againstthe Government as against any otherperson.