Indian Contract Law and Special Contracts

Flashcards covering the foundational principles of Indian Contract Law, including elements of a contract, types of offers, and special contracts like indemnity, guarantee, bailment, and pledge.

Contract

Agreements enforceable by law.

Indian Contract ACT 1872

The codified law in India that governs contracts.

Civil Nature

A characteristic of contract law meaning harms are redressed by paying compensation and damages, which can be liquidated or unliquidated.

Competency to Contract

Requirements for a person to enter a contract, including being a majority (18+), of sound mind, and not barred by any law.

Consent

When two or more persons agree upon the same thing in the same sense.

Free Consent

Consent that is not caused by coercion, undue influence, fraud, misrepresentation, or mistake.

Coercion

Described as 'Sabardasti,' it refers to force used to obtain agreement.

Consideration

What one party agrees to do or abstain from doing for the other party.

Object

The purpose for which the contract is formed.

Express offer

A direct and clear offer.

Implied offer

Indirect offers conveyed through actions.

General offer

An offer made to the public at large.

Specific offer

An offer made to an individual or a specific group.

Counter offer

A response to an offer that changes the original terms.

Cross offer

When two parties make the same offer to each other at the same time regarding the same object and consideration.

Acceptance

An agreement to an offer that must be absolute, unconditional, and communicated to the offeror.

Void Contract

A contract that is not valid, often due to unlawful consideration, unlawful object, or being barred by law.

Voidable Contract

A contract that is initially valid but can become void, typically when consent is not free.

Contract of indemnity

A contract by which one party promises to save the other from loss caused to him by the conduct of the promisor himself or by the conduct of any other person.

Contract of guarantee

A contract to perform the promise or discharge the liability of a third person in case of his default.

Surety

The person who gives the guarantee in a contract of guarantee.

Principal debtor

The person in respect of whose default the guarantee is given.

Creditor

The person to whom a guarantee is given.

Bailment

The delivery of goods by one person to another for some purpose, with the agreement that they shall be returned once the purpose is accomplished.

Bailor

The person delivering the goods in a bailment.

Bailee

The person to whom goods are delivered in a bailment.

Pledge

The bailment of goods as security for payment of a debt or performance of a promise.

Pawner

The bailor in the case of a pledge.

Pawnee

The bailee in the case of a pledge.