Report on Fraud Sec. 17 Indian Contract Act 1872
REPORT ON
FRAUD SEC.17 INDIAN CONTRACT ACT 1872
Definition of contract:
A contract is an agreement made between two or more parties which the law will enforce. Sec 2(h) defines contract as an agreement enforciable by law.
Contract = An agreement + enforceable by law * According to Sir William Anson: A legally binding agreement between two or more persons by which rights are acquired by one or more to acts or forbearances (abstaining from doing something) on the part of the others. * According to Salmond: A contract is an agreement creating and defining obligations between the parties. * An agreement is defines as “every promise and every set of promises, forming consideration for each other” [sec. 2(e)]
Agreement = Offer + Acceptance * Promise: When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal, when accepted, becomes a Promise.
Promise = Proposal by one person + its acceptance by another person
ESSENTIAL ELEMENTS OF A VALID CONTRACT 1. Offer and acceptance 2. Intention to create legal relationship 3. Lawful consideration 4. Capacity of parties- competency 5. Free and genuine consent 6. Lawful object 7. Agreement not declared void 8. Certainty and possibility of performance 9. Legal formalities
FREE CONSENT
According to section 13. Two persons are said to have consented when they agree upon same thing in the same sense.
In English law, this is called ‘consensus – ad – idem’
Effect of absence of consent: 1 When there is no consent at all, the agreement is void – ab – initio’.
It is not enforceable at the option of either party
Example 1:-
X have two car one Maruti car and one Honda city car. Y does not know that X has two cars Y offers to buy car at Rs.50,000. Here, there is no identity of mind in respect of the subject matter. Hence there is no consent at all and the agreement is void – ab – inito.
FRAUD SEC.17 INDIAN CONTRACT ACT 1872
Definition of contract:
A contract is an agreement made between two or more parties which the law will enforce. Sec 2(h) defines contract as an agreement enforciable by law.
Contract = An agreement + enforceable by law * According to Sir William Anson: A legally binding agreement between two or more persons by which rights are acquired by one or more to acts or forbearances (abstaining from doing something) on the part of the others. * According to Salmond: A contract is an agreement creating and defining obligations between the parties. * An agreement is defines as “every promise and every set of promises, forming consideration for each other” [sec. 2(e)]
Agreement = Offer + Acceptance * Promise: When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal, when accepted, becomes a Promise.
Promise = Proposal by one person + its acceptance by another person
ESSENTIAL ELEMENTS OF A VALID CONTRACT 1. Offer and acceptance 2. Intention to create legal relationship 3. Lawful consideration 4. Capacity of parties- competency 5. Free and genuine consent 6. Lawful object 7. Agreement not declared void 8. Certainty and possibility of performance 9. Legal formalities
FREE CONSENT
According to section 13. Two persons are said to have consented when they agree upon same thing in the same sense.
In English law, this is called ‘consensus – ad – idem’
Effect of absence of consent: 1 When there is no consent at all, the agreement is void – ab – initio’.
It is not enforceable at the option of either party
Example 1:-
X have two car one Maruti car and one Honda city car. Y does not know that X has two cars Y offers to buy car at Rs.50,000. Here, there is no identity of mind in respect of the subject matter. Hence there is no consent at all and the agreement is void – ab – inito.