Looking for a Tutor Near You?

Post Learning Requirement »
x

Choose Country Code

x

Direction

x

Ask a Question

x

x
x
For better view click here
x
Hire a Tutor
DISCOVER

Business Law

Loading...

Published in: Law, Ethics and Communication
10,920 Views

Indian Contract Act 1872

Kuheli C / Kolkata

year of teaching experience

Qualification:

Teaches: CA - CPT, CA - Final, Accountancy, Business Mathematics, Business Organisation, Commerce Subjects, Costing, B.Com Tuition, Banking & Finance, BBA Tuition, Direct Tax, Financial Management, Indirect Tax, M.Com Tuition

Contact this Institute
  1. Business Law INDIAN CONTRACT ACT 1872 Contract: According to Indian Contract Act 1872 and under section 2(h) contract may be define as an aqreement enforceable by law . So a contract has two parts It must be an agreement. l. It must be enforceable by law. If Mr A wants to sell his car for Rs100000 to Mr B, here the agreement between the two parties A and B is enforceable by law and hence it is a contract. All Agreements are not contracts but all Contracts are Agreement An Agreement is a contract, when- It is enforceable in the court of law. It is made by free consent of parties who are competent to contract for a lawful consideration with a law full objects. An agreements are not contracts- In order to create an agreement the parties to it must come to same intention as led down in the Act two or more persons are said to have consented when they agree upon the same things in the same sense and at the same time. Thus an agreement may or may not create legal obligation. An agreement which does not create legal obligation on both the parties and those obligations must have their sources in the agreement. Example Mr B invites Mr A for a dinner at his house and Mr A accepts the invitation, this is an agreement and it cannot be treated as a contract because it does not create legal obligation.
  2. Distinguish between Agreement and Contract Agreement Offer and its unqualified acceptance constitute an agreement. An agreement may or may not create any legal obligation. Every agreement need not necessary be a contract. An agreement may not be concluding for a binding contract. Contract An agreement and its enforceability constitute a contract. A contract essentially creates a legal obligation. All contracts are agreement. Every contract is concluded and binding on the contracting parties. ESSENTIALS ELEMENTS OF A VALID CONTRACT: As per Sec 10 All agreements are contracts if they are made by free consent of parties competent to contract for a lawful consideration and with a lawful objects and are not hereby expressly declared to be void. The co-existence of the following elements are essentials to make a valid contract. 1. OFFER AND ACCEPTANCE: There must be two parties to an agreement, one party making a lawful offer and another party making a lawful acceptance. 2. INTENTION TO CREATE LEGAL RELATIONSHIP: When the two parties enter into an agreement their intention must be to create legal relationship between them if there is no such intention on the part of the parties. There is no contract between them.
  3. LA WFIJLL CONSIDERATION: An agreement to be enforceable by law 3. must be supported by consideration. Consideration means an advantage or benefit moving from one party to other. In simple words it means something in returns. CAPACITY OF PARTIES: The parties to an agreement must be capable of 4. entering into a valid contract. Every person is competent to contract if he is of the age of majority and is of sound mind. FREE CONSENT: In order to be enforceable an agreement must be 5. based on the free consent of all the parties. Consent is free when parties to a contract agree on the subject matter of the agreement in the same sense and at the same time. Consent is said to be free when it is not influenced by coercion, undue influence, fraud and misrepresentation. 6. LEGALITY OF THE OBJECTIVES: The objects of the agreement must be legal. It must not be illegal, immoral and opposed to public policy.
  4. N/A

Need a Tutor or Coaching Class?

Post an enquiry and get instant responses from qualified and experienced tutors.

Post Requirement

Related Study Notes

Upload Study Notes

If you have your own Study Notes which you think can benefit others, please upload on LearnPick. For each approved Study Note you will get 100 Credit Points and 100 Activity Score which will increase your profile visibility.

Upload Now
Home > Study Notes > Business Law