INDIAN CONTRACT ACT-1872 - P.G.G.C.G.-11, E...
Transcript of INDIAN CONTRACT ACT-1872 - P.G.G.C.G.-11, E...
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