Dr.K.Naveena

Lecturer in commerce S.V.D. GOVT. DEGREE COLLEGE(W) NIDADAVOLE WEST GODAVARI

2nd B.Com, IV Semester

CONTRACT: Section 2 (H) “An agreement enforceable by

law”.

Agreement:

Proposal

Acceptance

Consideration

Proposal Sec 2(A)

“When one person signifies to another his willingness to Do or

to abstain from Doing something with a view to obtain his

assent , he is said to be make a proposal”.

Acceptance Sec 2 (B)

“When the person to whom the proposal is made, signifies his

assent thereto, the proposal is said to be accepted”.

Proposal + Acceptance = Promise.

Promise Sec 2 (B)

“When the person to whom the proposal is made signifies his

assent thereto the proposal is said to be accepted. Proposal

when accepted becomes a Promise”.

EXAMPLE:

PROPOSES

SRINIVAS RAGHU

CAR Rs. 2,00,000

IF RAGHU ACCEPTS THIS PROPOSAL IT BECOMES

PROMISE

SELL

Consideration 2 (D)

When at the desire of the promiser or any other person

has done or abstained from doing, or does or abstained

from doing or promises to do or abstain from doing

something, such act or abstinence is called a

consideration for the promise.

Consideration: When at the desire of the promiser the promisee or any

other person has done or abstained from doing (past

tens) or does or abstains from doing (present tense) or

promise to do or abstain from doing something(future

tense) such an act or abstinence or promise is called

consideration for the promise.

Promise + Consideration = Agreement.

Agreement Sec 2(E)

Every promise and every set of promises forming

Consideration for each other is called an Agreement.

EXAMPLE: PROPOSES

SRINIVAS RAGHU CAR Rs. 2,00,000

IF RAGHU ACCEPTS THIS PROPOSAL IT BECOMES

PROMISE

SELL

PERSON WHO MAKES THE PROPOSAL IS CALLED PROMISER

PERSON WHO ACCEPT THE PROPOSAL IS CALLED PROMISEE IN THIS EXAMPLE:

SRINIVAS IS PROMISER AND RAGHU IS PROMISEE

consideration

AGREEMENT

proposal acceptance

Essential elements of Contract (sec.10)

Offer & Acceptance

Intention to create legal relationship

Consensus -ad-idem

Consideration

Capacity of parties

Free consent

Legality of object

Possibility of performance

Lawful Consideration

Legal Formalities

SUMMARY

PROPOSAL + ACCEPTANCE = PROMISE

PROMISE + C0NSIDERATION = AGREEMENT

AGREEMENT + ENFORCEABILITY = CONTRACT

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1. On the basis of validity or Enforceability

2. On the basis of Formation

3. On the basis of performance

1.Valid contract

2.Void Agreements

3.Void contract

3.Voidable contracts

4. Illegal Agreements

5. Unenforceable Contracts.

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1. Express Contract.

2. Implied Contract

3. Quasi Contract

4. E-Commerce Contract

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1.Executed Contract

2. Executory Contract:

1. Unilaterial Contract

2. Bilaterial Contract.

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