North Maharashtra University School of Management Studies

Name :- Rahul D Bharambe M.B.A. II nd year Roll no :- 4 Subject :- 302 Business Law –I Presented to :- Mr. Milind Dhanraj sir

Unit :-I

INDIAN CONTRACT ACT

2

IntroductionThe law of contract is the function upon which the super structure of modern business is built .

The law of contract is applicable not only to business community but also to other .

Agreement Legal Obligation

Contract “All agreements are contracts but all contracts are not agreements.”

CONTRACT = AGREEMENT + ENFORCIBILITY BEFORE LAW

Meaning The law of contract in india is contained in

the indian contract act 1872

This act is based mainly on English common law which is to large extent mode up of judicial proccedency

It extends to the whole of India except the state of J&K

Scheme of actIt may be divided into two main groups

1)General principle of the law of contract

2)Specific kind of contract

a)Contract of indeminitty & guarantee b)contract of bailment expledge c)contract of agency

DefinitionAccording to section 2(h) of indian

contract act “ an agreement en forable by law is a

contract . A contract is an agreement the object of

which is to create a leglal obligation .i.e a duty enforceable by law

according to this defination contract essentially consist of two element

1) on agreement 2) Legal obligation

EssentialsThe essential element of valid contract are -: 1) Offer & acceptance 2) Intention to create legal relation 3) Lawful consideartion 4) capacity of parties 5) Free constent 6) lawful Object 7) writing & registration 8) certanity 9) Possibilality of performance 10) not expressery declered avoid

Offer & acceptance There must be a lawful offer and a

lawful acceptance of the affect thus resulting in an agreemeants .the adjective lawful implies that the offer & accpetance must satisfy the reguirment or the contract act in relagtion therero.

Intentien to create legal relationThere must be an intention among the parties that the agreement should be attached be legal consequences create legal obligation

Lawful considearationThe third essential element of a valid

contract is the presence or consideartion has been defined as

The price paid by one party for the promisse to other an agreement is legally enforaceable only when each of the parties to it gives some thing & gets some thing .the some given or obtained is the prices for the promise & is called consideration sub react to ceratain exception gratution promises are not enforceasble at law

Free consent

Free consent of all the parties to an agreement is another essential element of a valid contract consent mean that the parties must have agreed upon the same think in some sense.

Capacity of contractEssential ingredient of a valid

contract is that the contracting partites must be ‘competent of contract lays down that ‘

“ every person is compersery to convert who is of the age of majenity according to the law to which he is subject & who is at sound ming & is not disqualified from contracting by any law to which he is subjection .”

Which is depend on following section 1) If he is a minor according to the law to which he is subject

2) If he is of unsound mind

3) If he is disqualified from contracting by any law to which he is subjection.

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