CONTRACT ACT 1987

8/7/2019 CONTRACT ACT 1987

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BY : -

ALOK RAVI

2K10MKT02


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The Indian Contract Act 1872 sections 1-

75 came into force on 1 September 1872 . It applies to the whole of India except the

state of Jammu and Kashmir.

It is not a complete and exhaustive law onall types of contracts.


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Section 2(h) of the Act defines the termcontract as "any agreement enforceable bylaw".

Section 2(e) defines agreement as "everypromise and every set of promises, formingthe consideration for each other.

Section 2(b) defines promise in these

words: "when the person to whom theproposal is made signifies his assentthereto, the proposal is said to beaccepted.


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1.Proper offer and proper acceptance.

2.Lawful consideration.

3.Competent to contract or capacity.4.Free Consent.

5.Lawful Object and Agreement.

6. Agreement not declared void or illegal.

7. Intention To Create Legal Relationships.

8. Certainty, Possibility Of Performance.

9. Legal Formalities.


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On the basis of Validity :-

1. Valid contract2. Void contract.

3. Voidable contract.4. Illegal contract.

5. Unenforceable contract


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On the basis of Formation :-

1. Express contract.

2. Implied contract.

3. Tacit contract.

4. Quasi contract


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On the basis of Performance:-

1. Executed contract.2. Executory contract.3. Unilateral contract.4.

Bilateral contract.


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"when one person signifies to another his

willingness to do or to abstain from doing anything

with a view to obtaining the assent of that other to

such act or abstinence, he is said to make a

proposal/offer".

[section 2(a) of the Indian contract Act, 1872]


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Section 2(b), "When the person to whom the proposal is

made signifies his assent thereto, the proposal is said to

be accepted.

Rules:1. Acceptance must be absolute and unqualified.

2. Communicated to offer.

3. Acceptance must be in the mode prescribed.

4. Acceptance must be given within a reasonable time

before the offer lapses.5. Acceptance by the way of conduct.

6. Mere silence is no acceptance.


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Consideration is the price for which the

promise of the other party is bought.

"when at the desire of the promisor, the

promisee or any other person has done orabstained from doing, or does or abstains from

doing, or promises to do or to abstain from

doing, something, such act or abstinence or

promise is called a consideration for thepromise"


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Alien Enemies.

Foreign Sovereigns and Ambassadors. Convict.

Company or Corporation.

Insolvents


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Rescission of Contract.

Suit for Damages.

Suit for Specific Performance.

Suit for Injunction.

Suit for Quantum meruit


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Indemnity' means to make good the loss or to

compensate the party who has suffered some

loss.

A contract of guarantee is a contract to

perform the promise or discharge the liabilityof a third person in case of his default"."


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CONTRACT ACT 1987

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