LAW

Section 2 (a)

Offer

Section 2 (b)

Acceptance

Section 2 (c)

Promise

Section 2 (d)

Consideration

Section 2 (h)

Contract

Section 10

Essentials of a Contract

What are the Essentials of a Contract

Section 10 includes:

1. Offer & Acceptance [Section 2 (a) and 2 (b)]

2. Intention to Create Legal Relation (B vs. B)

3. Consideration [Section 2 (d)]

4. Lawful Object [Section 23]

5. Possibility of Performance [Section 56]

6. Capacity of Parties

7. Free Consent [Section 15 to 22]

8. Legal Formalities

9. Agreement NOT declared void

10. Certainty of Meaning [Section 29]

Classification of Contracts based on Validity

1. Valid Contract [Section 10]

2. Void Contract [Section 2 (j)]

3. Void Agreement [Section 2 (g)]

4. Illegal Agreement

5. Voidable Contract [Section 2 (i)]

Classification of Contracts Based on Formation

1. Express

2. Implied

3. Quasi

4. E-Contracts

Classification of Contrats Based on Performance

1. Executed

2. Executory
   a. Unilateral
   b. Biilateral

Types of Offers (7)

1. Express offer

2. Implied Offer

3. General Offer (Carlil vs. Carbolic Smoke Ball Company)

4. Specific Offer

5. Standing Open Offer

6. Cross Offer (Tim vs. Hoffman)

7. Counter Offer

Essential Elements for a Valid Offer (9)

1. Clear & Definite

2. Legal Relation (B vs. B)

3. Made for obtaining Assent

4. It Must be Communicated (Lalman Shukla vs. Gauri Dutt)

5. May be Expressed or Implied.

6. May be Conditional

7. Non- Compliance is NOT equal to assent.

8. Invitation to Offer is NOT an Offer. (Pharma Society of Britain vs. Boots Cash Chemist)

9. Statement of Price is NOT an Offer. (Harvey s. Facey)

Essential Elements of Valid Acceptance (9)

1. Absolute & Unconditional (Neal vs. Merret) (Hyde vs. Wrench)

2. Must be communicated to the offeror.

3. Must be given in the mode prescribed.

4. Must be within prescribed time limit.

5. Must not precede an offer.

6. Must be given to the person by whom the offer is made.

7. Must be given before the offer is withdrawn.

8. It must not be assumed through silence.

9. Can be expressed or implied

Section 4

Communication of Offer and Acceptance.

Section 5

Revocation of Offer and Acceptance

Offer comes to an end when..

1. Revoked

2. Lapse of Time

3. Non-fulfillment of Conditions by Offeree

4. Death of Insanity of Offeror

5. Counter Offer

6. Offer Stands Impossible

Essential Elements of a Valid Consideration (8)

1) Must move at the desire of the promise (Durga Prasad vs. Baldev Singh)

2) Consideration may move from the promisee or any other person. (Chinayya vs. Rammaya)

3) Can be of Past, Present, Future

4) May be an act of Abstinence, Sacrifice, Return Promise.

5) Consideration need not to be adequate.

6) Consideration must not be imaginary.

7) Must not be illegal, immoral or against public policy.

8) Promisor is not already bound to do.

Exceptions to Doctrine of Privity. (5)

1. Trust or Charge

2. Marriage Settlement

3. Assignment of Contract

4. Contracts entered through an Agent

5. Covenants running with the land.

Contracts Without Consideration (8)

1. Natural love and affection

2. Compensation for past voluntary services

3. Written to pay a time barred debt

4. Completed GIft

5. Creation of Agency

6. Charitable Subscription

7. Creation of Gratituous Bailment

8. Creation of Contract of Guarantee

Section 11

Capacity of Parties

Rules of Minor’s Agreements (11)

1. Agreements with minors are void ab initio (Mohiri Bibi vs. Dharmodas Ghosh)

2. Minor can be a beneficiary.

3. No ratification of reaching age of majority.

4. No specific performance of the agreements.

5. Minor cannot be adjudged insolvent.

6. Minor can always plead minority.

7. Minor is liable for necessaries

8. Minor cannot be partner.

9. Only parents can enter into contracts on minors behalf, for minor’s benefit.

10. Minor can only be shareholder through lawful guardian.

11. Liable to Torts

Section 12

Person of Unsound Mind

Examples of Unsound Mind

1. Lunatics

2. Idiot

3. Drunken

4. Hypnotism

Disqualified by Law

1. Alien Enemies

2. Convicts

3. Foreign Diplomats

4. Joint Stock Companies

5. Insolvents

Section 13

Free Consent

Section 15

Coercion

Features of Coercion

1. Voidable

2. Physical harm to parties related or involed

3. Threaten to harm (Chikam Amiraju vs Seshamma)

Section 16

Undue Influence

Section 17

Fraud

Essential Elements of Fraud (5)

1. False Representation

2. Related to an important fact of the contract.

3. Must be made before the conclusion of the contract with the intention to induce the other party into taking action upon it.

4. Made with knowledge to falsify

5. Other party must have suffered a loss and have been deceived.

Uberrmae Fidei

“Utmost Good Faith”. SOme contracts which the law imposes a special duty to act upon with utmost good faith.

Section 18

Misrepresentation

Essential Elements of Misrepresentation (6)

1. False Representation

2. Related to an important fact of the contract.

3. Must be made before the conclusion of the contract with the intention to induce the other party into taking action upon it.

4. The repesentation must be false but the person who made it must believe it is true.

5. May not be directly made to the plaintiff.

6. Burden of Proof

Section 20, 21, 22

Mistake

Examples of Bilateral Mistake (6)

1. Existence of Subject Matter

2. Identity of Subject Matter

3. Quality of Subject Matter

4. Quantity of Subject Matter

5. Title of Subject Matter

6. Possibility of Performance

Term: Maintenance & Champerty

Person initiating litigation falsely and assistant for sourcing funds or witness.

Term: Litigation

Legal lawsuit

Term: Plaintiff

Aggreived

Term: Remedies

Solutions

Term: Consensus ad Idem

Meeting of Minds, Same subject matter, same time, same sense.

Term: Quid Pro Quo

Something in return

Term: Abstinence

Refrain

Term: Void ab Initio

Void from the start

Term: Assent

Approval

Term: Revocation

Withdraw/ Cancel

Term: Covenants

Legal clauses

Term: Bailment

Transfer of possesion without ownership (borrowed pen)

Term: Ratification

confirmation of previous act

Term: Torts

Ciil wrongs