UNIT 1
CONTENTS -
Nature of contract,Types/Classification of contract,Offer and acceptance,Capacity of the
parties,Free consent,Lawful consideration,Legality of the object,Agreement declared to be
void,Performance of the contract
Prepared by Alex Paul
Indian Contract Act 1872
What is Contract?
According to section 2(h) of the Indian Contract Act, 1872 “An agreement enforceable by law is a
contract.“
A contract is a combination of the two elements:
There must be an agreement
1.Agreement must be enforceable by law (obligation)
2.The agreement should be enforceable by the law
Definition
According to Salmond
“A contract is an agreement creating and defining obligation between two or more persons by which
rights are acquired by one or more to acts or forbearance on the part of others”.
Types of
contract
, CONSIDERATION UNDER INDIAN CONTRACT ACT
Consideration’ means “something in return”, i.e. quid pro quo that is an essential element to find out
the genuine intention of the parties of the promise to create legal relationship. Consideration is an
essential component of a valid contract. Consideration is the price for the contract. An agreement
without consideration is void and thus not enforceable by law except under certain circumstances.
According to Sir Frederick Pollock. “Consideration is the price for which the promise of the other is
bought, and the promise thus given for value is enforceable.” An agreement without consideration is
a bare promise and exnudo pacto non aritio actio, i.e., cannot be held to binding on the parties.
According to section 2(d) of the Indian Contract Act “when at the desire of the promiser, promisee
or any other person has done or abstained from doing or does or abstains from doing or promises to
do or to abstain from doing something, such act or abstinence, or promise is called a consideration
for the promise.”
Example :
A offers to sell his car to B for a sum of ` 1,00,000. B accepts the offer. In this contract,
i.A is the promisor and it is his desire to sell his car for ` 1,00,000
ii.B is the promisee and on the desire of A he is purchasing the car for ` 1,00,000.
, The consideration for A’s promise, is a sum of ` 1,00,000 while consideration for B’s promise is the
car.
ESSENTIALS OF A VALID CONSIDERATION
LAWFUL CONSIDERATION AND LEGAL OBJECT
For a contract to be a valid contract two things are absolutely essential – lawful object and lawful
consideration. So the Indian contract act gives us the parameters that make up such lawful
consideration and objects of a contract. Let us take a look at the legality of object and consideration
of a contract. Object is the objective with which a contract is undertaken same conditions as to
lawful considerations prevail for legal object as well
CONTENTS -
Nature of contract,Types/Classification of contract,Offer and acceptance,Capacity of the
parties,Free consent,Lawful consideration,Legality of the object,Agreement declared to be
void,Performance of the contract
Prepared by Alex Paul
Indian Contract Act 1872
What is Contract?
According to section 2(h) of the Indian Contract Act, 1872 “An agreement enforceable by law is a
contract.“
A contract is a combination of the two elements:
There must be an agreement
1.Agreement must be enforceable by law (obligation)
2.The agreement should be enforceable by the law
Definition
According to Salmond
“A contract is an agreement creating and defining obligation between two or more persons by which
rights are acquired by one or more to acts or forbearance on the part of others”.
Types of
contract
, CONSIDERATION UNDER INDIAN CONTRACT ACT
Consideration’ means “something in return”, i.e. quid pro quo that is an essential element to find out
the genuine intention of the parties of the promise to create legal relationship. Consideration is an
essential component of a valid contract. Consideration is the price for the contract. An agreement
without consideration is void and thus not enforceable by law except under certain circumstances.
According to Sir Frederick Pollock. “Consideration is the price for which the promise of the other is
bought, and the promise thus given for value is enforceable.” An agreement without consideration is
a bare promise and exnudo pacto non aritio actio, i.e., cannot be held to binding on the parties.
According to section 2(d) of the Indian Contract Act “when at the desire of the promiser, promisee
or any other person has done or abstained from doing or does or abstains from doing or promises to
do or to abstain from doing something, such act or abstinence, or promise is called a consideration
for the promise.”
Example :
A offers to sell his car to B for a sum of ` 1,00,000. B accepts the offer. In this contract,
i.A is the promisor and it is his desire to sell his car for ` 1,00,000
ii.B is the promisee and on the desire of A he is purchasing the car for ` 1,00,000.
, The consideration for A’s promise, is a sum of ` 1,00,000 while consideration for B’s promise is the
car.
ESSENTIALS OF A VALID CONSIDERATION
LAWFUL CONSIDERATION AND LEGAL OBJECT
For a contract to be a valid contract two things are absolutely essential – lawful object and lawful
consideration. So the Indian contract act gives us the parameters that make up such lawful
consideration and objects of a contract. Let us take a look at the legality of object and consideration
of a contract. Object is the objective with which a contract is undertaken same conditions as to
lawful considerations prevail for legal object as well
