INDIAN CONTRACT

ACT-1872

HISTORY OF INDIAN CONTRACT

ACT - 1872

Enforced w.e.f. September 1, 1872.

Applicable to whole of INDIA except J&K

Concerned with rights in PERSONAM

As distinguished from rights in REM

A CONTRACT is an agreement creating and defining

obligations between the parties

According to HALSBURY, it is, “an agreement between two or

more persons which is intended to be enforceable at law & is

constituted by the acceptance by one party of an offer made

to him by the other party to do or to abstain from doing some

act.”

COMPONENTS OF CONTRACT

An Agreement

It involves proposal or offer by one party and acceptance of the same by the other party.

AGREEMENT = OFFER + ACCEPTANCE

Enforceable at law

An agreement to become a contract must give rise to legal obligations. It must create legal relations and not merely social or domestic relations.

CONTRACT = AGREEMENT+ENFORCEABILITY AT LAW

Leading Case: BALFOUR V. BALFOUR

ELEMENTS OF A VALID CONTRACT

Offer and acceptance Intention to create legal relationship Lawful consideration –QUID PRO-QUO Capacity of parties (Sec. 11) Minor Persons of unsound mind Persons disqualified by law to which they are subject Free consent (Sec. 13) Coercion Undue Influence Fraud Misrepresentation Mistake Lawful object if forbidden by law of such nature that if permitted it would defeat the provisions of any law

Elements of a valid

contract fraudulent

involves injury to person or property

Court regards it immoral or opposed to public policy

Certainity of meaning

Possibility of performance

Not declared to be void or illegal

Legal formalities

CLASSIFICATION OF CONTRACTS

VALID CONTRACTS

VOID CONTRACT

VOID AGREEMENTS

VOIDABLE CONTRACTS

UNFORCEABLE CONTRACTS

ILLEGAL CONTRACTS

EXECUTORY CONTRACTS

EXECUTED CONTRACTS

EXPRESS CONTRACTS

IMPLIED CONTRACTS

QUASI CONTRACTS

ENFORCEABILITY PERFORMANCE

FORMATION