Contract Act Presentation

7/31/2019 Contract Act Presentation

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Members:- Ajinkya Kate

Dishita Toshniwal

Husain RupawalaKavita Diwan

Liva Samal

Mruganka Behera

Rucha Karajgaonkar


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Enforced w.e.f. September 1, 1872.

Applicable to whole of INDIA except

J&KConcerned with Rights in PERSONAM

As distinguished from Rights in REM


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A CONTRACT is an agreement creating and

defining obligations between the parties

According to HALSBURY, it is, anagreement 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.


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Enforceability

Legal obligation

Binding of partiesSpecialty

Legality

Time of enforceability

Restitution

Compensation

Collateral transactions


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Meaning:-An agreement enforceable bylaw is a contract.

Essential elements of a valid contract:- Free consent Offer and acceptance Contractual Capacity(competency) of

parties. Consideration Lawful Object


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Certainty and possibility of performance

Term of contract should be clear

Agreement must not be declared void Legal formalities.


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According to enforceability

Valid contract

Void contract Voidable contract

Illegal contract

Unenforceable contract


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Definition:- It is a contract indicating to do or

not to do something, if some event, collateral

to such contract does or doesn't happen.

Characteristics of contingent contracts

Event must be collateral

It shouldnt be mere will of promissor

Rules regarding contingent contract

performance.


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Agreement by persons who are not competent

to contract

Agreement with unlawful consideration Agreement without consideration

Agreements in restrain of trades

Wagering agreements

Agreements to do impossible acts


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On the basis of performance:

Unilateral contract Bilateral contract

Executed contract

Executory contract


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According to formation:-

Express contract Implied contract

Quasi contract


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Offer and acceptance

Intention to create legal relationship

Lawful consideration Capacity of parties (Sec. 11)

Free and genuine consent (Sec. 13)

Lawful objectAgreement not declared void

Certainty and possibility of performance

Legal formalities


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Offer Meaning:-An offer is a proposal by one party to another

to enter in to a legally binding agreement with him.

Offer may be express(spoken or written words) orimplied.(inferred from conduct)

Types of offer:-

Express and implied Specific and general Positive and negative Counter offer


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Expressed or Implied

Create legal relationship

Terms of offer must be certain Specific person or a class of persons

Final willingness of the offerer

An offer may be conditional Offer must be made with view of

obtaining assent


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Acceptance is the act of assenting by the offereeto an offer.

It indicates that the person making it is willingto be bound by the terms of the offer.(sec2(b))

Legal rules as to acceptance:- It must be absolute and unqualified. It must be made by the party to whom the offer

is made. The acceptance must be expressed in usual or

reasonable manner.


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It must be given in reasonable time.

It cannot be made in ignorance of offerer.

It must be given before the offer lapses.

It must be communicated to the offerer.

Mere mental acceptance is no acceptance.(possible cases of acceptance by silence)


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By notice of revocation

By lapse time

By failure of the acceptor to fulfill a condition

precedent to acceptance

By failure to accept according to the mode prescribed

By death or insanity of the offeror

By rejection

By subsequent illegality or destruction of subject

matter


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It is an act or abstinence

Such act should be done at the desire of

promissor It can be made by promisee or any other

person

It is either already executed or it is process of

execution

Legal rules regarding consideration


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Mental incompetence:-

Idiots, Lunatics and insane person and

drunkards.

Persons disqualified by law:-

Alien enemy, Insolvent and Convict

Minor(immature mind)

Rules regarding minors agreementNecessaries

Not necessaries


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Meaning

Coercion

Undue Influence

Fraud

Misrepresentation

Mistake

Promissory estoppels


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Definition:-An agreement which is

impliedly prohibited by the law.

Effects of illegal agreements

Effect on main transaction

Effect on collateral transactions


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Suit for rescission

Suit for injunction

Suit for specific performance

Suit for damages

Penalty by courts

Suit for quantum meruit


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Section 124 of Indian Contract Act

Contract by which one party promises to save

the other from the loss caused to him by thecontract of the promissor himself, or by the

conduct of any other person.

Rights to indemnity holder


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It is a contract to perform the promise or

discharge liability of a third person in case of

default. Types of Guarantees

Specific guarantee

Continuing guarantee

Bank guarantee


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Prompt, inexpensive way of resolvingbusiness disputes

Arbitration agreement

Section 7 of arbitration and conciliationact, 1996


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Section 126 deals with Contract of Guarantee

The contract to perform the promise, or

discharge the liability, of the third person incase of his default. The person who gives

guarantee is called surety, the person in

respect of whom default is given is called the

principle debtor, the person to whom

guarantee is given is called creditor.

A guarantee may be either oral or written.


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Employeremployee relationship

Duties of employee

Conditions in contract

Employment at will

Express contract

Termination

Liquidated damages Data privacy

Non disclosure of data concerning business


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Important clauses in commercial contracts

Description of parties

Recitals of subject

Consideration

Covenants and undertakings

Signatures and attestation

Endorsement and supplement deeds Stamp duty


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Gambling

Intention

Insurable interest Indemnity

Legal effect

Parties interest

Stakes

Risk


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Suretys liability (Section 128)

Continuing guarantee ( Section 129, Indian

Contract Act) Revocation of continuing guarantee.

Revocation of continuing guarantee by

suretys death.


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THANK YOU

Contract Act Presentation

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