Law of Contracts I Notes_250211_223548

What is the law of contracts primarily concerned with?

The law of contracts provides circumstances in which a promise made by a person is legally binding on the promisor.

What is meant by 'freedom of contract'?

It refers to the freedom of parties to choose terms advantageous to their interests when entering into a contract.

What must exist for a contract to be concluded?

There must be an intention to create legal relations, known as animus contrahendi.

What was established in Balfour v Balfour (1919)?

Social agreements made between family members are generally not enforceable in court as they lack intention to create legal relations.

In Merritt v Merritt (1970), what was significant about the agreement made between the couple?

The agreement was written down and signed, which indicated a legal intention, making it enforceable.

What does the case Coward v Motor Insurers Bureau (1962) demonstrate?

Arrangements made without an intention to create legal relations are unenforceable.

What is the objective test of intention regarding contracts?

The court assesses the intention based on what a reasonable person would think, considering the circumstances.

What is a counter-proposal according to the Indian Contract Act?

A rejection of the original proposal which results in a fresh proposal being made.

Under what circumstances can silence amount to communication?

Silence does not generally constitute communication, except in exceptional cases.

What does the Postal Rule state?

Acceptance is effective when sent, as long as it is sent to the offeror.

What is the general rule for revocation of an offer in Indian law?

Revocation of an offer must be communicated to the offeree by the offeror.

What constitutes an unlawful consideration according to Section 23 of the Indian Contract Act?

Consideration that is forbidden by law, defeats the provisions of any law, or is fraudulent.

What does 'nudum pactum' mean?

A bare promise without consideration, which cannot be enforced.

What is the significance of Section 11 in the Indian Contract Act?

It specifies the qualifications of parties who are competent to contract.

What is meant by 'consensus ad idem'?

It means an agreement between parties in the same sense, or meeting of the minds.

What is considered a void agreement?

An agreement that is made without free consent due to coercion, undue influence, fraud, misrepresentation, or mistake.

How does the law define coercion?

Consent obtained through pressure exerted through threats or unlawful detention.

What is undue influence in a contract?

When one party is in a position to dominate the will of another and uses that position to gain an unfair advantage.

What are the essential elements to prove undue influence?

A dominant position must be proven, and the use of that position to gain unfair advantage.

How does the case of Raffles v. Wichelhaus relate to consent?

It illustrates that a contract is unenforceable if there is no mutual understanding or meeting of minds.

What does Section 14 of the Indian Contract Act address?

It defines free consent and the circumstances under which consent is not considered free.

What does consideration mean in a contract?

Consideration refers to something of value exchanged between parties in a contract, which is essential for the agreement to be enforceable.

What is an example of lawful consideration?

Money, services, or goods exchanged as part of a contract.

What constitutes a bilateral contract?

A bilateral contract involves mutual promises where both parties agree to perform certain obligations.

What is the difference between a void and voidable contract?

A void contract is unenforceable from the beginning, while a voidable contract is valid until one party chooses to void it.

What is the legal remedy for breach of contract?

Damages, specific performance, or rescission can be remedies for breach of contract.

What is the significance of 'intention to create legal relations'?

This intention differentiates social or domestic agreements from those intended to be enforceable by law.

What role do contractual terms play?

Contractual terms outline the rights and duties of the parties involved in the contract.

What is meant by 'misrepresentation' in contracts?

Misrepresentation occurs when false statements are made that induce another party to enter into a contract.

What are express and implied terms in

What is an example of misrepresentation in a contract?

A seller falsely claims that a car has never been in an accident to induce a buyer to purchase it.

What are the key elements required to form a valid contract?

Offer, acceptance, consideration, intention to create legal relations, and lawful purpose.

What does 'capacity to contract' mean?

The legal ability of a party to enter into a binding contract, typically based on age and mental competency.

What is the legal effect of a unilateral contract?

A unilateral contract is binding only when one party fulfills their obligation, typically in response to a promise.

What is specific performance in contract law?

A legal remedy requiring a party to fulfill their obligations as specified in the contract, rather than providing damages.

What constitutes an enforceable contract?

A contract that meets all required elements and complies with applicable legal standards.