Indian contract act Notes

Topics: Contract, Contract law / Pages: 20 (4866 words) / Published: Mar 4th, 2014
Chapter 2 : The Indian Contract Act 1872

Definition
Sir Frederic Pollock - “Every agreement and promise enforceable at law”
According to Sec 2(h) “An agreement enforceable by law
Agreement – Every promises and set of promises forming consideration for each other.

Essential Elements of Valid Contract

Minimum Two Parties – one party has to make an offer and other must accept it.
Offer & Acceptance – There must be an offer and acceptance to the offer, resulting into an agreement. It should be lawful
Legal Formality – The agreement should be enforced and be complete legal relations between parties to it.
Lawful Consideration – consideration is an essential element of a valid contract, it may be past, present or future but it may be lawful
Free Consent – Consent means that the parties must agree about the subject matter of the agreement in the same sense and at the same time.
Lawful Object
Certainty & Possibility of performance – The terms and conditions must not be vague or uncertain.
Legal Formalities –Generally a contract must be written always.

Classification Of Contract
According to Validity

1. Valid Contract – A valid contract is an agreement duly enforceable by law with all the essential elements of a contract.
2. Voidable Contract – It is enforceable by law at the option of one parties
3. Void Agreement – it is an agreement not enforceable by law because one or more of essentials of valid contract
4. Void Contract – An agreement may be enforceable initially and due to certain circumstances may become void subsequently
5. Illegal Agreement -
6. Unenforceable contract – it is one which cannot be enforced in a court of law because of some technical defect or absence of contract in writing.

According to Formation

1. Express contract – a contract where in both offer and acceptance are made in words, or written
2. Implied contract – a contract which is inferred from the conduct of parties or course of dealings between

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