Tab 1
, Study Notes by Muskan
Course/Subject:- BBA / Business Law
Semester/Date:- Semester 4-December 2025
Table of Contents
Unit 1:- INDIAN CONTRACT ACT 1872:
1. Definition of Contract
2. Types of Contract
3. Offer and Acceptance
4. Consideration
5. Capacity of a Party
6. Free Consent
7. Void Agreement
8. Performance of Contract
9. Discharge of Contract
10.Breach of contract and remedies for contract
1.CONTRACT
● A contract is a legally binding agreement between two or more parties that outlines
specific obligations and duties .
● It is an agreement that can be enforced by law, meaning if one party fails to fulfill their
contractual obligations,the other party can seek legal remedies.
● Contracts can be verbal or written but written contracts are generally more enforceable.
● In order for a contract to be lawful and enforceable, consideration must be given by both
parties.
● Indian Contract Act (ICA) 1872, defines the term “Contract” Under Section 2(h)-
“An agreement enforceable by law.”
Contract=Agreement+Enforceability at law.
2. TYPES OF CONTRACT
● On the Basis of Enforceability
(1)Valid Contract
Refers to contract which satisfy all the elements of a contract which is imposed by out of
law.
(2)Void Contract
Refers to a contract which is not enforceable by law.
1
, Study Notes by Muskan
Course/Subject:- BBA / Business Law
Semester/Date:- Semester 4-December 2025
Table of Contents
Unit 1:- INDIAN CONTRACT ACT 1872:
1. Definition of Contract
2. Types of Contract
3. Offer and Acceptance
4. Consideration
5. Capacity of a Party
6. Free Consent
7. Void Agreement
8. Performance of Contract
9. Discharge of Contract
10.Breach of contract and remedies for contract
1.CONTRACT
● A contract is a legally binding agreement between two or more parties that outlines
specific obligations and duties .
● It is an agreement that can be enforced by law, meaning if one party fails to fulfill their
contractual obligations,the other party can seek legal remedies.
● Contracts can be verbal or written but written contracts are generally more enforceable.
● In order for a contract to be lawful and enforceable, consideration must be given by both
parties.
● Indian Contract Act (ICA) 1872, defines the term “Contract” Under Section 2(h)-
“An agreement enforceable by law.”
Contract=Agreement+Enforceability at law.
2. TYPES OF CONTRACT
● On the Basis of Enforceability
(1)Valid Contract
Refers to contract which satisfy all the elements of a contract which is imposed by out of
law.
(2)Void Contract
Refers to a contract which is not enforceable by law.
1
