Primary Bus Law Case Finl

8/12/2019 Primary Bus Law Case Finl

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Contents

Definition of Contract:

According to Section 2(h) of Contract Act 1872, An agreement enforceable by law is a contact.

!here are two essentials of this act, agreement and enforceability. Section 2(e) defines agreement

as "e#ery $romise and e#ery set of $romises, forming the consideration for each other." Again

Section 2(b) defines $romise in these words% "when the $erson to whom the $ro$osal is made

signifies his assent thereto, the $ro$osal is said to be acce$ted. &ro$osal when acce$ted becomes

a $romise."

Essential elements of valid contract is as follows:

1. Offer and acceptance: !here m'st be a lawf'l offer and lawf'l acce$tance of the offer.

2. Intention to create legal relation:

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!here m'st be an intention among the $arties that the agreement sho'ld be attached by legal

conse*'ences and create legal relation.

3. Lawful consideration:

!here m'st be a lawf'l consideration. Consideration has been defined as the $rice $aid by one

$arty for the $romise of the other.

4. Capacit of parties: According to Section 11 of Contract Act 1872, +n order to be com$etent

to contract the $arties m'st be of the age of maority and of so'nd mind and m'st not be

dis*'alified from contracting by any law to which they are s'bect.

!. "ree consent: According to Section 1- of contract act 1872,Consent means that $arties m'st

ha#e agreed '$on the same thing in the same sense. +t is an essential element of a #alid contract.

#. Lawful o$%ect: or the formation of a #alid contract it is also necessary that the $arties to an

agreement m'st agree for a lawf'l obect.

&. 'riting and registration: According to the +ndian Contract Act a contract may be oral or in

writing. /'t in certain s$ecial cases it lays down that the agreement, to be #alid, m'st be in

writing or registered.

(. Certaint: According to Sec20 of Contract Act 1872,Agreement the meaning of which is not

certain or ca$able of being made certain, are #oid.

hile disc'ssing the essential elements of a #alid contract in the abo#e disc'ssion we obser#ed

that as a first ste$ in the maing of a contract there m'st be lawf'l offer by one $arty and a

lawf'l acce$tance of the offer by the other $arty.

3isc'ssion whether the case is a #alid contract%

1. Offer and )cceptance:A #alid offer was made by 3oraemon and whoe#er acce$ts the offer

m'st swim across the ri#er to show his acce$tance.

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2. Lawful Consideration:!he consideration of a s'm of 24,444 taa was $romised by the

offeror '$on com$letion of the contract.

3. Capacit of parties:'nclear.

4. Lawful O$%ect:the contract is not 'nlawf'l, fra'd, immoral or o$$osed to $'blic $olicy.

!. *ossi$ilit of performance: Swimming across a ri#er is $ossible so the $ossibility of

$erformance is there.

Case Discussion:

S$ongebob didnt gi#e his acce$tance to 3oraemons offer when he anno'nced it e5$ressly b't

he remained *'it. /'t he 'm$ed in the ri#er regardless b't it is in order to sa#e the boy from

drowning not to com$lete the offer 3oraemon has anno'nced, so it is not clear if S$ongebob

acce$ted 3oraemons offer so the contract is #oid as no acce$tance is gi#en.

Offer:

According to sec 2(a) of contract act 1872,hen one $erson signifies to another his willingness

to do or to abstain from doing anything, with a #iew to obtaining the assent of that other to s'ch

to s'ch act or abstinence, he is said to mae a $ro$osal.

Legal rules regarding a valid offer are descri$ed $elow:

1. )n offer ma $e e+press or implied: An offer may be made either by words or by cond'ct.

An offer which is e5$ress by words s$oen or written is called an e5$ress offer and the one

which is inferred from the cond'ct of a $erson or the circ'mstances of the case is called an

im$lied offer.

2. )n offer must contemplate to give rise to legal conse,uences and $e capa$le of creating

legal relation: +f the offer does not intend to gi#e rise to legal conse*'ences, it is not a #alid

offer in the eye of law.

3. -e terms of te offer must $e certain and not loose or vague: +f the terms of the offer are

not definite or certain, it does not amo'nt to a lawf'l offer.

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4. )n invitation to offer is not an offer: An offer m'st be disting'ished from an in#itation to

recei#e offer or as it is sometimes e5$ressed in 'dicial lang'age an in#itation to treat.

!. )n offer ma $e specific or general: An offer is said to be s$ecific when it is made to a

definite $erson. A general offer on the other hand is which is made to the world at large or $'blic

in general.

#. )n offer must $e communicated to te offree: An offer is effecti#e only when it is

comm'nicated to the offeree. 6ntil the offer nown to the offeree, there can be no acce$tance

and no contract.

&. )n offer sould not contain a term te non compliance of wic would amount to

acceptance: An offeror cannot say that if acce$tance is not comm'nicated '$ to a certain date,

the offer wo'ld be $res'med to ha#e been acce$ted.

(. )n offer can $e made su$%ect to an terms and condition: An offeror may attach any terms

and conditions to the offer he maes.

/. -wo identical cross offer do not ma0e a contract: hen two $arties mae identical offers to

each other, in ignorance of each others offer, the offers are cross offers.

Is te case a valid offer:

As it is cleared in the +ndian contract act 1872 which is disc'ssed abo#e a #alid offer ha$$ens

when a $erson shows his willingness to do something or his abstain from doing something with

the #iew of obtaining the assent of the other to s'ch act.

+n the case we can see%

1. illingness of 3oraemon to $ay 24,444 !aa.

2. !he offer was made to the $ersons who were $resent there.

-. !he $ayment will be made to anyone who swims across the ri#er.

So yes, it is a #alid offer.

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Elements of valid offer in te case:

1. )n offer can $e e+press or implied:An offer can be made either by word or by cond'ct. +n

the case 3oraemon e5$ressly said to the $eo$le $resent he will $ay anyone who will swim across

the ri#er to the other ban.

2. )n offer must contemplate to give rise to legal consideration: 3oraemon is bo'nd to $ay

anyone who now abo't the offer and $erformed the tas re*'ired and if not he will be s'bected

to legal consideration.

3. -e terms of te offer must $e certain and not vague: 3oraemon will $ay anyone who can

swim across the ri#er there is no 'ncertainty in the offer.

4. pecific or general:!he case is of a general offer beca'se 3oraemon did not bind the offer to

the friens he was with b't to anyone can swim across the ri#er, so any $erson who nows abo't

the offer can bo'nd himself to the contract.

!. )n offer must $e communicated to te offeree: 3oraemon clearly comm'nicated his offer

to the offeree by e5$ress words.

/y 'dging the abo#e $oints we can say a #alid offer was $laced by the offeror 3oraemon.

Lapses and revocation of offer:

1. )n offer lapses after stipulated or reasona$le time: An offer la$ses if acce$tance is not

comm'nicated within the time $rescribed in the offer, or if no time is $rescribed, within a

reasonable time. Section 9(2) of Contract Act 1872:

2. )n offer lapses $ not $eing accepted in te mode prescri$ed or if no mode is prescri$ed

in some usual and reasona$le manner: /'t according to section 7 of Contract act 1872, if the

offree does not acce$t the offer according to the mode $rescribed, the offer does not la$se

a'tomatically. +t is for the offeror to insist that his $ro$osal shall be acce$ted only in the

$rescribed manner.

3. )n offer lapses $ re%ection: An offer la$ses if it has been reected by the offeree. !he

reection may e5$ress or im$lied.

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4. )n offer lapses $ te deat or insanit of te offeror or te offeree $efore acceptance: +f

the offeror dies or becomes insane before acce$tance, the offer la$ses $ro#ided that the fact of

his death or insanity comes to the nowledge of the acce$tor before acce$tance. Sec9 (;) of

Contract Act 1872:

!. )n offer lapses $ revocation: An offer is re#oed when it is retracted bac by the offeror.

An offer may be re#oed, at any time before acce$tance, by the comm'nication of notice of

re#ocation by the offeror to the other $arty. Sec 9(1) of Contract Act 1872:.

#. evocation $ non fulfillment of a condition precedent to acceptance: An offer stands

re#oed if the offeree fails to f'lfill a condition $recedent to acce$tance. Sec 9(-) of Contract

Act 1872:

&. )n offer lapses $ su$se,uent illegalit or destruction of su$%ect matter: An offer la$ses

by s'bse*'ent illegality after it is made and before it is acce$ted.

*ossi$ilit of revocation $ Doraemon:

According to the +ndian contract act 1872 section 9(1) an offer can be re#oed any time before

acce$tance. +n the case of 3oraemon and S$ongebob the acce$tance of the offer is not acce$ted

to 3oraemon when S$ongebob 'm$ed into the ri#er b't when he swims to the other side. So

3oraemon reser#es the right to re#oe the offer is made any time before s$ongebob swam to the

other side of the ri#er. So yes, 3oraemon can re#oe the offer and s$ongebob cannot reco#er the

money '$on com$letion of the tas.

)cceptance:

According to sec 2(b) contract act 1872,hen the $erson to whom the $ro$osal is made

signifies his assent there to, the $ro$osal is said to be acce$ted.

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Legal rules regarding a valid )cceptance:

1. )cceptance must $e given onl $ te person to wom te offer is made: An offer can be

acce$ted only by the $erson or $ersons to whom it is made and with it im$orts an intention to

contract .

2. )cceptance must $e a$solute and un,ualified ec& 516 of Contract act 1(&27: +n order to

be legally to be effecti#e it m'st be an absol'te and 'n*'alified acce$tance of all terms of the

offer.

3. )cceptance must $e e+pressed in some usual and reasona$le manner unless te proposal

prescri$es te manner in wic it is to $e accepted sec& 526 of contract act 1(&27: +f the

offeror $rescribes no mode of acce$tance, the acce$tance m'st be comm'nicated according to

some 's'al and reasonable mode.


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&6 e%ected offers can $e accepted onl if renewed: =ffer once reected cannot be acce$ted

again 'nless afresh offer is made.

Case Discussion:

hen S$ongebob heard abo't 3oraemons =ffer he did not not gi#e his acce$tance by word nor

deed, b't he 'm$ed to sa#e the boy, while doing so he did not say to 3oraemon is he doing it for

the offer gi#en by 3oraemon so no S$ongebob didnt acce$t the offer./eca'se as the r'le of

acce$tance the acce$tor b't $erform the deed with the tho'ght of $erforming it for the deed the

gi#en by the offeror. /y sa#ing the child S$ongebob 3id the tas for a social ca'se not for the

offer and therefore is not s'bected to the consideration.

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