Indian Contract Project)

8/8/2019 Indian Contract Project)

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CONTRACT LAW


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What is an Agreement?

Basically a set of promises Infinite Scope

May not always be enforceableby law

Offer + Acceptance = Agreement Eg: Zen offers to take Vivan for

a movie and Vivan agrees to go.This results in an Agreement.

As per Section 2 (e) : Everypromise and every set ofpromises, forming theconsideration for each other, inan agreement.


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What is a Contract?

An Agreement enforceable by law. Offer + Acceptance + Enforceability =

CONTRACT

If any party fails to perform theirobligations, the innocent party can go

to court.

Scope of Contract is limited.

As per Section 2 (h) : An agreementenforceable by law is a Contact.

Eg: TATA Company offers to sell Nanocar at Rs. 100000/- to Saloni. Saloniagrees to buy but later refuses to pay.TATA Company being the innocent partycan go to the court for enforcingSaloni to perform.


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Essentials of a Contract

Offer

Acceptance

Legal relationship

Capacity

Free Consent


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Essential of Contract contd.

Object Lawful

Consideration

Not Void

Capable of Performance

Legal formalities


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Classification of Contracts

Classificationof Contracts

Execution Enforceability Creation


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Contracts on the basis of

Execution

Both parties have performed theirobligationsExecuted

Both parties still to perform their obligations

Performance is in the futureExecutory

One of the party has fulfilled its obligations

Other party yet to fulfill

PartlyExcecuted/Executory


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Contract on the basis of

Enforceability

Valid Contract

Void Contract

Void Agreement

Voidable Contract

Illegal Agreement

Unenforceable Contract


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Contracts on the basis of

Creation Contract made by words

spoken or written or both

or by miming

Express

Contract

Contract inferred fromconduct of a person orfrom circumstances

ImpliedContract


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Proposal/Offer

S.2(a) defines a proposal as:

When one person signifies to another his

willingness to do or abstain from doing

anything, with a view to obtaining the assent

of that other to such act or abstinence, he is

said to make a proposal.


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Legal Rules Regarding Offer

Rules of anOffer

Intention tocreate legal

relation

Communication

Certain

Different frommere declaration

of intention

Different fromInvitation

Special terms


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Kinds of Offer/Proposal

It is an offer made to the public in general and anyonecan accept it.

GeneralOffer

The offer is made to a specific person.Specific

Offer

When two parties exchange identical offers in ignoranceof each others offer. In this case no contract comes intoexistence, as the other cannot consider ones offer asacceptance

Cross Offer


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When the offeree accepts the offernot per se but by the rejection ofthe original offer

Counter Offer

It allowed to be open for

acceptance over a period of time

Standing/Continuing

Offer


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Modes of Revocation of an Offer

1. By notice

2. By death/insanity of the offerer/offeree

3. By lapse of time

4. By not accepting in the prescribed mode or usualmode


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Modes of Revocation of anOffer(contd)

5. By failure to accept condition precedent

6. By counter offer

7. By rejection of offer by offeree

8. By subsequent illegality or destruction of subject

matter of the offer


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Acceptance

S. 2(b) defines acceptance as

When a person to whom the proposal is made

signifies his assent thereto, the proposal issaid to be accepted. A proposal when

accepted becomes a promise.


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Conditionsfor Valid

Acceptance

Who canaccept

Mode ofacceptance

Absolute

Communication


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Conditionsfor Valid

Acceptance

Time Limit

Mentalacceptance is no

acceptance

Beforelapse of

offer

No acceptancewithoutKnowledge of

offer


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Communicationof offer and

acceptance

Completion ofcommunication

of offer

Completion ofcommunicationof acceptance

Communication of Offer and

Acceptance


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As r S cti

The communication of a proposalis complete when it comes to the

knowledge of person to whom it is

made.

Communication of

Offer


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As Per Section 4As i st t e r ser,

e it is t i c rse f tr s issi t i , s s t be

t f t e er f t e cce t r,

s i st t e cce t r, e it c es t t e k le e f t e

r ser.

Communication ofAcceptance


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THANK YOU

Kanav Gupta, 78

Anuj Veer Singh, 67

Riyank Mehta, 100

Sneha Punjabi, 101

Uthayya Aiyappa, 112

Rohan Kaul, 89


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