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    Unit-2 Contract

    Uploaded by

    Gyana Sahoo
    The document discusses the key elements of a valid contract formation, including offer, acceptance, consideration, and lawful object. It defines an offer as a proposal by one party to enter into a legally binding agreement, which must be definite, communicated to the offeree, and made with the intention of obtaining assent. For a valid acceptance, the response must be absolute, unconditional, and communicated back to the offeror. Consideration is defined as something of value that is exchanged by both parties in order to create a legally binding agreement. The object of the contract must also be lawful and not against public policy.

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    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd

    Unit-2 Contract

    Uploaded by

    Gyana Sahoo
    79 views10 pages
    The document discusses the key elements of a valid contract formation, including offer, acceptance, consideration, and lawful object. It defines an offer as a proposal by one party to enter into a legally binding agreement, which must be definite, communicated to the offeree, and made with the intention of obtaining assent. For a valid acceptance, the response must be absolute, unconditional, and communicated back to the offeror. Consideration is defined as something of value that is exchanged by both parties in order to create a legally binding agreement. The object of the contract must also be lawful and not against public policy.

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    contract law

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    Unit-2 Contract.pptx

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    The document discusses the key elements of a valid contract formation, including offer, acceptance, consideration, and lawful object. It defines an offer as a proposal by one party to enter into a legally binding agreement, which must be definite, communicated to the offeree, and made with the intention of obtaining assent. For a valid acceptance, the response must be absolute, unconditional, and communicated back to the offeror. Consideration is defined as something of value that is exchanged by both parties in order to create a legally binding agreement. The object of the contract must also be lawful and not against public policy.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    79 views10 pages

    Unit-2 Contract

    Uploaded by

    Gyana Sahoo
    The document discusses the key elements of a valid contract formation, including offer, acceptance, consideration, and lawful object. It defines an offer as a proposal by one party to enter into a legally binding agreement, which must be definite, communicated to the offeree, and made with the intention of obtaining assent. For a valid acceptance, the response must be absolute, unconditional, and communicated back to the offeror. Consideration is defined as something of value that is exchanged by both parties in order to create a legally binding agreement. The object of the contract must also be lawful and not against public policy.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 10

    OFFER & ACCEPTANCE

    Offer: A person said to have made a proposal when He signifies to another his willingness to do or to abstain from doing anything with a view to obtaining the assent of the other to such act or abstinence *Sec 2 (a)+ An offer is proposal by one party to enter into a legally binding agreement with another One signifies his willingness to do or not to do some act It is signified With a view to obtain assent
    11/8/2013 bkumar@mba_utkal 1

    Legal rules as to offer


    Offer must be given with an intention to create a legal relationship Offer must be communicated Offer must be definite, certain, unambiguous There is a clear cut difference between declaration and invitation Offer must have intention to obtain assent Offer should not contain a term the noncompliance of which may be assumed to amount to acceptance
    11/8/2013 bkumar@mba_utkal 2

    How an offer is made By Express words, spoken or written (Express Offer) By conduct of the parties or the circumstances of the case (Implied Offer) Invitation to make an offer Case 1: Harris vrs. Nickerson Case-2: Harvey vrs. Facey Communication of offer when complete
    Communication of a proposal is complete when it comes to the knowledge of the person to whom it is made There must be acceptance of an offer. There can be no acceptance unless there is knowledge of the offer
    11/8/2013 bkumar@mba_utkal 3

    Acceptance
    Legal Rules as to acceptance
    Must be absolute ,unqualified/unconditional and to all the terms of offer Must be communicated to offerer Must be according to prescribed mode Must be given within a reasonable time Must be by the party or parties to whom the offer is made Must show an intention on the part of the acceptor to fulfill the terms of promise Must be made before the offer has lapsed
    11/8/2013 bkumar@mba_utkal 4

    Revocation
    An offer can be revoked by communication of notice Revocation by lapse of time Revocation by non-fulfillment of a condition precedent to acceptance Revocation by death or insanity Revocation by counter offer

    11/8/2013

    bkumar@mba_utkal

    LAWFUL OBJECT
    Object means purpose of the contract. Agreement becomes void if it is unlawful. Circumstances are
    It is forbidden by law If permitted, then contrary to the provision of law. The object itself is not against the law but implementation of the object may defeat the existing provisions It is fraudulent It may involve/ imply injury to the person or property of other It is Immoral It is against public policy
    11/8/2013 bkumar@mba_utkal 6

    Agreement/ Contract opposed to public policy



    11/8/2013

    Trading with enemy In restraint of legal proceedings Interference with administration of justice Trading in public offices &titles To create interest opposed to duty In restraint of parental rights In retrain of marriage In restraint of personal rights In restraint of trade
    bkumar@mba_utkal 7

    CONSIDERATION
    According to sec 2(d) consideration is defined as when at the desire of the promisor , or 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 an act or abstinence or promise is called a consideration for the promise When a party to an agreement promises to do something he must get something in return .This something is defined as consideration

    Consideration is that an absence of which renders an agreement void


    11/8/2013 bkumar@mba_utkal 8

    Legal Rules as to consideration It must move at the desire of the promisor. It may move by the promisee . It must be past ,present or future . It need not be adequate . It must be real and not illusory . It must not be illegal , immoral or opposed to public policy . The rule that no consideration no contract has exceptions or An agreement without consideration is void
    11/8/2013 bkumar@mba_utkal 9

    Exceptions
    Love & affection Compensation for voluntary service Promise to pay a time barred debt Completed gift Creation of Agency

    Stranger to a Contract: Stranger to consideration can sue


    because the consideration can be furnished or supplied by any person whether he is the promisee or not. But a stranger to a contract can not sue because of the absence of privity of contract (i.e relationship subsisting between parties to a contract): Exceptions: In case of Trust, Family settlement, Acknowledgement, Assignment
    11/8/2013 bkumar@mba_utkal 10

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