1. Indian contract act, 1872.
Contract Equation:-
Offer Promise Agreement
+ = + = + = Contract
Acceptance Consideration Legally Enforceable
Types Of Contract Of Agreement:-
based on
Based On Based On
based on Enforecability
method of
Number Of formation
performance
Parties.
Void
Formal
Contract
Bi- Party Executed valid
Simple
contract
void
oral
Tri- Party Executory agreement
Illegal
written
Agreement
Multi Partly
Party Executed voidable
contract
All illegal agreements are void but all void agreements are not illegal.
Illegal agreements – void-ab-initio
Essentials of valid contract :-
1. Valid offer + unconditional acceptance
2. Capacity of parties.
3. Legal consideration & legal objective
4. Free consent (consensus-ad-idem) = meeting of the minds.
5. Agreement not declared void.
6. Certainty and possibility of performance.
7. Legal formality.
Offer :-
When one person signifies to another his willingness to do or obtain from doing anything.
With a view to obtain the assent. If that other to such act.
, He is said to make a proposal.
Essentials of valid offer :-
1. Intention of creating legal relation.
2. Communication is must.
3. Special terms to be highlighted.
4. Separate from mere declaration.
The person who make offer is called as offerer.
The person whom offer is made is called offeree.
Instead proposer and proposee can be used.
Types of offer:-
How To whom
Express Specific
Implied General
Other concepts similar to offer but not offer:-
counter offer
gross offer
invitation to offer
standing offer
There is a very minute difference between Implied offer and Invitation to offer. The only
point of difference is invitation to offer comes with price quote.
Standing offer :- Offer which are continuous in nature. Standing offer is an Invitation to offer.
Contract Equation:-
Offer Promise Agreement
+ = + = + = Contract
Acceptance Consideration Legally Enforceable
Types Of Contract Of Agreement:-
based on
Based On Based On
based on Enforecability
method of
Number Of formation
performance
Parties.
Void
Formal
Contract
Bi- Party Executed valid
Simple
contract
void
oral
Tri- Party Executory agreement
Illegal
written
Agreement
Multi Partly
Party Executed voidable
contract
All illegal agreements are void but all void agreements are not illegal.
Illegal agreements – void-ab-initio
Essentials of valid contract :-
1. Valid offer + unconditional acceptance
2. Capacity of parties.
3. Legal consideration & legal objective
4. Free consent (consensus-ad-idem) = meeting of the minds.
5. Agreement not declared void.
6. Certainty and possibility of performance.
7. Legal formality.
Offer :-
When one person signifies to another his willingness to do or obtain from doing anything.
With a view to obtain the assent. If that other to such act.
, He is said to make a proposal.
Essentials of valid offer :-
1. Intention of creating legal relation.
2. Communication is must.
3. Special terms to be highlighted.
4. Separate from mere declaration.
The person who make offer is called as offerer.
The person whom offer is made is called offeree.
Instead proposer and proposee can be used.
Types of offer:-
How To whom
Express Specific
Implied General
Other concepts similar to offer but not offer:-
counter offer
gross offer
invitation to offer
standing offer
There is a very minute difference between Implied offer and Invitation to offer. The only
point of difference is invitation to offer comes with price quote.
Standing offer :- Offer which are continuous in nature. Standing offer is an Invitation to offer.
