Types of Contract Uma

8/3/2019 Types of Contract Uma

1/29

TYPES OFCONTRACT


2/29

DEFINITIONS

A contract is an agreement made between two or

more parties which the law will enforce. Sec 2(h)

defines a contract as an agreement enforceable by law.

Pollock: Every agreement and promise enforceable

at law is a contract.

Salmond: A contract is an agreement creating anddefining obligations between the parties.


3/29

CONTRACT

AGREEMENT +

ENFORCEABILITY


4/29

AGR EEMENT

An agreement is defined as every promise and

every set of promises, forming consideration foreach other. A proposal when accepted becomes a

promise.

Agreement= Offer + Acceptance


5/29

ENFORCEABILITY

Enforceability is the legal obligation which

imposes upon a definite person or persons the necessity

of doing or abstaining from doing something. An

agreement which gives rise to a social obligation is not a

contract.

Agreement + Legal obligation is Contract

Agreement + Social obligation is not a Contract


6/29

EXAMPLE

A promises to sell his car to B for Rs. 10,000 received

by him as the price of the car. This agreement gives rise to

an obligation on the part of A to deliver the car to B. This

agreement is a contract. A father promises to pay his son

Rs. 1000 every month as pocket money. Later he refuses to

pay. In this case the agreement is not a contract as social

obligation is involved


7/29

ESSENTIAL ELEMENTS OF

A VALID CONTRACT

Offer and acceptance

Intention to create legal relationship

Lawful consideration

Capacity of parties- Competency

Free and genuine consent

Lawful object

Certainty and possibility of performance

Agreement not declared void


8/29

TYPES OF CONTRACT

Contracts can be classified according to their-

Validity

Formation

Performance


9/29

CLASSIFICATION BASED ON

VALIDITY

Voidable contract- free consent missing

Void contract- ceases to be inforceable by law

Illegal contract- criminal or immoral in nature

Unenforceable contract-cant be enforced by law

because of some technical defect


10/29

VOIDABLE CONTRACT

A promises to sell his car to B for Rs. 2,000. But his

consent is obtained by use of force. The contract isvoidable at the option of A. He may avoid the contract

or may choose to bound by it.

Consent is obtained by coercion, undue

influence, fraud or misrepresentation.


11/29

VOID CONTRACT

A contract to import goods from a foreign country

may subsequently become void when war breaks out

between the two countries


12/29

ILLEGAL

CONTRACTS

B borrows Rs. 5,000 from A and enters into a

contract with an alien to import prohibited goods. A

knows the purpose of the loan but still gives the

loan.The transaction between B and A is serving to

support the main agreement.Hence the contract

becomes illegal since the main agreement is illegal.


13/29

UNENFORCEABLE

CONTRACT

The contract becomes unenforceable in a Court of

law because of some technical defects such as absence

of writing or no evidence of formation of contract or

where the remedy has been barred by lapse of time.

Thus in event of breach of such contract, the aggrieved

party will not be entiltled to the legal remedies.


14/29

CLASSIFICATION BASED

ON FORMATION

EXPRESS CONTRACT-The terms of a contract

are expressly agreed upon (either by spoken words or in

writing) at the time of formation of the contract.

Eg: A pays Rs. 20,000 to B with the purpose of

buying Bs car. The terms of the agreement are written in

a document signed by both of them.


15/29


FORMATIONIMPLIED CONTRACT

It is inferred from the acts or conduct of the parties.It is not

a result of any express promise. No verbal means are used to

express the acceptance of proposal of contract.

1. Eg:There is an implied contract when A-

2. Gets into a public bus

3. Take a cup of coffee in a restaurant

4. Obtains a ticket from automatic weighing machine


16/29


FORMATION

QUASI CONTRACT- Its not a contract at all in strict

sense. No intentional entering into contract is there. It is

created by law. It rests on ground of equity that a person

shall not be allowed to enrich himself unjustly at the expense

of another.

Eg:A supplier leaves goods at Cs shop by mistake. C treats

the goods as his own. C is bound to pay for the goods.


17/29


PERFORMANCE

EXECUTED CONTRACT- both parties have

performed their respective obligations

Eg:A agrees to paint a picture for B for Rs. 1000. When

A paints the picture and B pays the price, i.e., when both

the parties have performed their obligations, the contract

is said to be executed.


18/29


PERFORMANCE

EXECUTORY CONTRACT- Both the parties

are yet to perform their obligations. If A has not yet

painted the picture and B has not yet paid the price,

the contract is executory.


19/29

AGENT, PRINCIPAL &SUB-AGENT


20/29

DEFINITION OF AGENT &

PRINCIPAL

An agent is a person employed to do any act for

another, or to represent another in dealings with the

third person.

The person for whom such act is done, or who is

represented is called the Principal.


21/29

SUB-AGENT:

A sub-agent is a person employed by, and

acting under the control of the original agent in the

business of the agency. This means he is the agent

of the original agent.


22/29

PROCESS OF SELECTING ANAGENT:

Any person who is of the age of majorityaccording to the law to which is subject and

who is of sound mind, may employ an agent.As such a lunatic or a minor or a drunkenperson cannot employ an agent.

Any person who is authourised toact as such may be an agent. As the agentdoes not make contracta on his own behalf.


23/29

It is not necessary that he should have

contractual capacity, even a minor may be an agent.

If a person who is not competent to contract is

appointed as an agent, the principal is liable to the

third party for the act of the agent


24/29

SCHEDULE

REGISTRATION NO. Fee Rs.

50

DATE OF REGISTRATION

FORM A

Application for Registration of Firms

(Seerule 3)

We, the undersigned, being partners, hereby apply for registration as a

firm and for thatpurpose supply the following particulars pursuant to

section 58 of the Indian Partnership Act,1932 :


25/29

(a) Firm Name

(b) Nature of business of the firm(c) Principal place of business of the Firm.

(d) Names of any other places where the firm carries on business in the

above name.

(e) Names in full and permanent address (residential) of all the partners.

(f) Date on which each partner joined the firm..

Place

Taluka

District


26/29

(g) Duration of the firm. In case there is any provision madeby contract for the duration of the partnership or for thedetermination of the partnership, please state the

provisions briefly. If no such provision is made, wordsAT WILL may be stated.

Note 1.For the registration of each Firm a separate application isnecessary. Accordingly the applicants should supply in this

application only particulars of the Firm in respect of which theapplication is made, this applies to the case of the same persons

carrying on business in partnership under different firm names.Note 2.

Against items (c) and (d), the exact location of the place shouldbe given.

Note 3.This application must be signed by all partners or their agentsspecially authorised in this behalf on solemn affirmation

before a Magistrate or other officer duly empowered to administerOaths.

Note 4.Making a false, untrue or incomplete statement is punishableunder section 70 of the Indian Partnership Act, 1932.


27/29

(h) In case there are any minors admitted to the benefits ofpartnerships :

(1) Name of Address of Minor

(2) Name and Address of Guardian

(3) Date of Admissions Benefits

(4) Date when he/she will attain Majority

We are sending the prescribed registration fee by cash/moneyorder, we .......... the ..........above named, solemnly affirm that whatis stated in paragraphs .......... is true to our own knowledge andthat what is stated in the remaining paragraphs is stated oninformation and belief, and I/We believe the same to be true.

We also declared on solemn affirmation that up to the date ofsubmission of this application there has not been any changewhatever in any of the particulars aforesaid.


28/29

Solemnly affirmed atDated this ................................. day of ................

(1)(2)(3)(4)(5)Names and Signatures

Certified that the persons who have signed the application have signedin my presence and have solemnly affirmed that the particulars furnishedtherein are true.

|Name of Attesting Witness

Designation

Address

And Seal, if available Before me(Price Re. 1)


29/29

THANK YOU

Types of Contract Uma

Documents

Transcript of Types of Contract Uma