NATURE AND KIND OF CONTRACT
Segment – 1
NATURE AND KIND OF CONTRACT
What is the Contract
Definitions:
Contract [Sec- 2 (h)]: Contract is an agreement enforceable by law.
Agreement [ Sec- 2 (e)]: Every promise and every set of promises, forming the consideration for each other.
Promise [Sec – 2 (b)]: When the person to whom the proposal is made signifies his consent thereto, the proposal said to be accepted. Proposal when accepted, become a promise.
Proposal: An unaccepted promise.
ESSENTIAL AGREEMENT OF VALID CONTRACT
All the agreements are contract if they are made by free consent of parties competent to contract for lawful consideration and with a lawful object and are not hereby expressly declared to be void.
Summary of Definition
- Proper offer
- Proper acceptance thereto with intention to create legel relationship
- Lawful consideration
- Capacity
- Free Consent
- Lawful agreement
Important Points Of Contract
- There must be an offer and its acceptance
- There must be mutual consent of the parties. They must agree upon same thing and in the same sense.
- There must be legal obligation i.e. the obligation should be enforceable by law.
- There must be free consent of the parties. The consent is not free when it is obtained by coercion, undue influence, fraud, misrepresentation of the facts.
- The parties must be competent to contract: The Minors or persons of unsound mind are not competent to contract.
- The agreement must be supported by lawful consideration
- The object of agreement must be lawful.
- The agreement must not be declared to be void.
- The agreement must be certain.
- The performance of object of agreement must not be impossible.
