Law of Contract Essentials

Vocabulary practice cards focusing on valid contract elements, legal sections, and terminology from the Indian Contract Act.

Essential Elements of a Valid Contract

The seven requirements including Offer and Acceptance, Free Consent, Competent Parties, Lawful Consideration, Intention to create Legal relations, Not expressly declared void, and Lawful object.

Balfour vs. Balfour

The case law establishing that matrimonial promises are not part of Contract Law because there is no intention to create legal relations.

Section 10 of the Contract Act

The specific section requiring that for a contract to be valid, the parties involved must be competent to contract.

Void ab initio

A legal term meaning 'void from the beginning'; used when a contract is cancelled or invalid from its inception.

Section 11 of the Indian Contract Act

States that every person is competent to contract who is of the age of majority, of sound mind, and not disqualified by law.

Age of Majority

The age required to be competent for a contract, defined as $18$ or above.

Unsound Mind

A category of incapacity to contract that includes an Idiot, Lunatic, or Drunkard.

Persons Disqualified by Law

Entities or individuals who cannot enter contracts, specifically listed as Alien Enemy, Convicts, and Corporations.

Consensus ad Idem

A Latin term for the 'meeting of minds' where parties agree to the same thing in the same sense.

Free Consent

Consent obtained by parties out of their own free will and accord; it is considered free when it is not caused by coercion, undue influence, fraud, misrepresentation, or mistake.

Section 14 of the Indian Contract Act

Defines the conditions under which consent is said to be free.

Voidable

The legal status of a contract when consent is obtained through coercion, undue influence, fraud, or misrepresentation.

Lawful Object

The purpose of an agreement which must not be fraudulent, illegal, immoral, or opposed to public policy.

Quid Pro Quo

A Latin phrase meaning 'something in return' which defines the basis of Lawful Consideration.

Bare Promise

A promise not supported by consideration, which is hence not enforceable by law.

Section 25 (1)

An exception to the rule of consideration based on accounts of natural Love and Affection.

Section 25 (2)

An exception to the rule of consideration regarding compensation for voluntary services.

Section 25 (3)

An exception to the rule of consideration concerning the promise to pay time-barred debts.