The document defines a contract and lists the essential elements of a valid contract according to Indian law. It discusses the definitions and classifications of different types of contracts based on their legal effects, performance, and formation. Specifically, it outlines 10 essential elements for a contract to be considered valid, including offer and acceptance, intention to create legal obligations, possibility of performance, legal formalities, consideration, capacity of parties, free consent, lawful object, certainty of meaning, and legality. It also provides examples of different types of contracts like valid, void, voidable, illegal, unilateral, bilateral, executory, executed, express, implied, and quasi contracts. In summary, the document provides a comprehensive overview of the key concepts and classifications
The document defines a contract and lists the essential elements of a valid contract according to Indian law. It discusses the definitions and classifications of different types of contracts based on their legal effects, performance, and formation. Specifically, it outlines 10 essential elements for a contract to be considered valid, including offer and acceptance, intention to create legal obligations, possibility of performance, legal formalities, consideration, capacity of parties, free consent, lawful object, certainty of meaning, and legality. It also provides examples of different types of contracts like valid, void, voidable, illegal, unilateral, bilateral, executory, executed, express, implied, and quasi contracts. In summary, the document provides a comprehensive overview of the key concepts and classifications
The document defines a contract and lists the essential elements of a valid contract according to Indian law. It discusses the definitions and classifications of different types of contracts based on their legal effects, performance, and formation. Specifically, it outlines 10 essential elements for a contract to be considered valid, including offer and acceptance, intention to create legal obligations, possibility of performance, legal formalities, consideration, capacity of parties, free consent, lawful object, certainty of meaning, and legality. It also provides examples of different types of contracts like valid, void, voidable, illegal, unilateral, bilateral, executory, executed, express, implied, and quasi contracts. In summary, the document provides a comprehensive overview of the key concepts and classifications
The document defines a contract and lists the essential elements of a valid contract according to Indian law. It discusses the definitions and classifications of different types of contracts based on their legal effects, performance, and formation. Specifically, it outlines 10 essential elements for a contract to be considered valid, including offer and acceptance, intention to create legal obligations, possibility of performance, legal formalities, consideration, capacity of parties, free consent, lawful object, certainty of meaning, and legality. It also provides examples of different types of contracts like valid, void, voidable, illegal, unilateral, bilateral, executory, executed, express, implied, and quasi contracts. In summary, the document provides a comprehensive overview of the key concepts and classifications
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Assignment-1
Business Law
Definition of Contract: The Indian Contract Act 1872 states the term contract is like an agreement that creates an obligation between parties. According to the act, the contract is "an agreement enforceable by law."
Essentials of a Valid Contract:
1. Offer and Acceptance Generally, the written contract only unfolds when the other party accepts the offer by one party and is definite in all sense. The offer or agreement must be clear and complete in all sense. Both parties should communicate to ensure there is no lapse of the contract act. Both the offer and acceptance must be "consensus ad idem" ,meaning, both parties must comply on the same thing.
2. The intent of Legal Obligations
One of the essential elements of a valid offer is that both parties subject to a contract must be clear with the intentions of creating a legal relationship. This also means that agreements that are not enforceable by the law like agreements between relatives are enforceable in the court of law.
3. Possibility of Performance of Agreement
In this case, suppose two people decide to undergo an agreement where person A agrees to bring person B’s dead relative back to life, this will not fall under the legal contract act because bringing back the deceased person alive is an impossible task. Thus, the agreement does not stand valid.
4. Legal Formalities In this agreement, if there is any uncertainty and both parties are not capable of finding the right path, then it is deemed void. As a part of essentials of a valid consideration, the terms and conditions of the contract should be concrete. Any contract, which is uncertain in any sense, can be termed as void. The terms mentioned in the agreement should be capable of performing specific thoughts.
5. Consideration Consideration means the moral value given for the performance of the promise. It should not be only limited to money, but there should be some value to what has been agreed upon. One of the essentials of valid consideration is that it should not be adequate, but should carry some value.
6. Capacity of parties. The parties to an agreement must be competent to contract. If either of the parties does not have the capacity to contract, the contract is not valid. According the following persons are incompetent to contract. (a) Miners, (b) Persons of unsound mind, and (c) persons disqualified by law to which they are subject.
7. Free Consent. 'Consent' means the parties must have agreed upon the same thing in the same sense. An agreement should be made by the free consent of the parties. Consent is said to be free when it is not caused by- Coercion Undue influence Fraud Misrepresentation Mistake 8. Lawful Object. Object has nothing to do with consideration. It means the purpose or design of the contract. Thus, when one hires a house for use as an office for an e-Commerce company, the object of the contract is to run an e-Commerce Company. The Object is said to be unlawful if- (a) it is forbidden by law; (b) it is of such nature that if permitted it would defeat the provision of any law; (c) it is fraudulent; (d) it involves an injury to the person or property of any other; (e) the court regards it as immoral or opposed to public policy.
9. Certainty of Meaning. Agreement the meaning of which is not Certain or capable of being made certain are void. A poorly drafted agreement which is ambiguous in nature is not legally valid.
10. Not Declared to be void or Illegal. The agreement, though satisfying all the conditions for a valid contract must not have been expressly declared void by any law in force in the country. For example an agreement to form a cartel to curb competition is illegal in India.
Classification Based on Legal Effects:
Valid= A valid contract is an agreement, which is binding and enforceable. In a valid
contract, all the parties are legally bound to perform the contract. The Indian Contract Act, 1872 defines and lists the essentials of a valid contract through interpretation through various judgments of the Indian judiciary. Void = A void contract is a formal agreement that is effectively illegitimate and unenforceable from the moment it is created. ... A contract may be deemed void if it is not enforceable as it was originally written. Voidable = Voidable contract is that form of a contract, wherein one party to the contract has the right to put it to an end if it is discovered that the contract contains some defects, concerning the lack of free consent. This means that the party, whose consent is influenced, is in a position to deny performing his … Illega l= An illegal agreement is a contract that was made for an illegal reason and is consequently against the law. If the content of the agreement causes the parties to perform illegal actions, then the contract is illegal. Agreements collateral to the original are also considered void.
Classification Based on Performance: Unilateral = A "unilateral" contract is distinguished from a "bilateral" contract, which is an exchange of one promise for another. Example of a unilateral contract: "I will pay you $1,000 if you bring my car from Cleveland to San Francisco." Bringing the car is acceptance. The difference is normally only of academic interest. Bilateral = A bilateral contract is a contract in which both parties exchange promises to perform. One party's promise serves as consideration for the promise of the other. As a result, each party is an obligor on that party's own promise and an obligee on the other's promise. ( compare: unilateral contract) Executory = An executory contract is a contract that has not yet been fully performed or fully executed. It is a contract in which both sides still have important performance remaining. However, an obligation to pay money, even if such obligation is material, does not usually make a contract executor Executed= An executed contract is a contract that has been signed by all necessary parties and has taken legal effect.
Classification Based on Formation:
Express= An express contract is an exchange of promises in which the terms by which the parties agree to be bound are declared either orally or in writing, or a combination of both, at the time it is made. Implied= An implied contract is a legally-binding obligation that derives from actions, conduct, or circumstances of one or more parties in an agreement. It has the same legal force as an express contract, which is a contract that is voluntarily entered into and agreed on verbally or in writing by two or more parties. Quasi =A quasi contract is a retroactive arrangement between two parties who have no previous obligations to one another. It is created by a judge to correct a circumstance in which one party acquires something at the expense of the other. The contract aims to prevent one party from unfairly benefiting from the situation at the other party's expense. These arrangements may be imposed when goods or services are accepted, though not requested, by a party. The acceptance then creates an expectation of payment. Requirements of Quasi: One party, the plaintiff, must have furnished a tangible item or service to another party, or the defendant, with the expectation or implication that payment would be given. The defendant must have accepted—or acknowledged receipt of—the item of value, but made no effort or offer to pay for it. The plaintiff must then express why it is unjust for the defendant to receive the good or service without paying for it. In other words, the plaintiff must establish that the defendant received unjust enrichment.
There are two contracts attached in the document :
A Simple Guide for Drafting of Conveyances in India : Forms of Conveyances and Instruments executed in the Indian sub-continent along with Notes and Tips
A Simple Guide for Drafting of Conveyances in India : Forms of Conveyances and Instruments executed in the Indian sub-continent along with Notes and Tips
