Management Laws

7/31/2019 Management Laws

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B Y

B H I M R A J S O N A W A N E

B E B I O T E C H N O L O G Y

Management Laws

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Content

Contract

Contract Act

Types of Contract

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Contract

A contract is a legally binding exchange of promisesor agreement between parties that the law willenforce.

Contract law is based on the Latin phrase pacta suntservanda meaning ,literally, promises must be kept.

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In common law jurisdictions there are two keyelements to the creation of a contract.

These are:-

1.offer and acceptance, and2. consideration and an intention to create legal

relations.

But ,in civil law systems the concept of considerationis not central.

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Offer and acceptance

An Offer is an expression of willingness to contracton certain terms, made with the intention that itshall become binding as soon as it is accepted by theperson to whom it is addressed, the "offeree.

Acceptance is a final and unqualified expression ofassent to the terms of an offer.

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Rules of acceptance:1. The acceptance must be communicated.2. An offer can only be accepted by the offeree.3. An offeree is not bound if another person accepts the

offer on his behalf without his authorization.4. Silence cannot be construed as acceptance5. If the offer specifies a method of acceptance (such as by

post or fax), you must accept it using a method that isno less effective than the method specified.

6. It may be implied from the construction of the contractthat the offeror .

7. has dispensed with the requirement of communicationof acceptance.

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Perhaps the most important feature of a contract isthat one party makes an offer for a bargain thatanother accepts. This can be called a 'concurrence of

wills' or a 'meeting of the minds' of two or moreparties.

There must be evidence that the parties had eachfrom an objective perspective engaged in conduct

manifesting their assent, and a contract will beformed when the parties have met such arequirement

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An objective perspective means that it is onlynecessary that somebody gives the impression ofoffering or accepting contractual terms in the eyes ofa reasonable person, not that they actually did wantto contract.

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Types of Contract

ExpressorImplied BilateralorUnilateral Void Contract

ExecutedorExecutory

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Unilateral Contract

It is the one where an offer is made to the wholeworld and acceptance comes from particular peopleupon their fulfillment of the contractual terms or thecondition precedent.

The offeree accepts the offer by performing his or herside of the bargain.

ABilateral Contract is, where there is an

exchange of promises between two parties.

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Implied Contract

Offer and acceptance does not always need to beexpressed orally or in writing.

An implied contract is one in which some of the

terms are not expressed in words. A contract which is implied in fact is one in which

the circumstances imply that parties have reached anagreement even though they have not done so

expressly.

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Void Contract

A contract which ceases to be enforceable by law be-comes void when it ceases to be enforceable. Thus,initially a contract cannot be void, i.e. a contractcannot be void ab initio.

The simple reason is that in such a case, it is not acontract at all to begin with.

Hence, only a valid contract can become void

contract due to some subsequent events.

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Example: the person dies or property is destroyed orGovernment imposes a ban etc.

A void agreement is void ab initio.

It never becomes a contract. It is nullity and cannotcreate any legal rights.

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Voidness implies that a contract never came intoexistence.

Voidabilityimplies that one or both parties may

declare a contract ineffective at their wish. Unenforceabilityimplies that neither party may

have recourse to a court for a remedy.

Recission is a term which means to take a contract

back.

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Executed Contracts

the infant has obtained some benefit under thecontract, he/she cannot avoid obligations unless

what was obtained was of no value.

Upon repudiation of a contract, either party canapply to the court.

The court may order restitution, damages, ordischarge the contract. All contracts involving the

transfer of real estate are considered valid until ruledotherwise.

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Thank you

Sonawane ,B.S. 2012

Management Laws

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