LAWLIGHTS-CONTRACTS AND ITS ESSENTIAL ELEMENTS

LAWLIGHTS-CONTRACTS AND ITS ESSENTIAL ELEMENTS

INTRODUCTION:

• Under INDIAN CONTRACT ACT 1872, section 2(h), contract is defined as an agreement enforceable by law.
• 1.   One person signifies to another to his willingness to do or abstain from doing anything from law, and with a view of obtaining the assent is said to make a proposal.

2.            
                                    Proposal                   when accepted                        becomes promise.

• .   Every promise, and every set of promises, forming consideration for each other, is an agreement. (sec 2(e))
• .   An agreement is not enforced by law is said to be void.

(Sec 2(g)).

• .   CONSIDERATION OF PROMISE: when the promisor or promise or any other person has done or abstained from doing or does or abstains.

These are some basic terms one should know before entering into the contract.

• Here I’m going give you the contracts in simple form that you may take a note like last minute preparation.

1. What is contract? Keep in mind about 2 things

          A. AGREEMENT

          B. ENFORCEABLE

2. Types of contracts:

a.    VALID

b.    VOID

c.     VOIDABLE

3. Elements of a valid contract:

a.     AGREEMENT ( IT INCLUDES OFFER, ACCEPTANCE, AND ASSENT)

b.    CONSIDERATION

c.      IN WRITING (NOT ALWAYS)

d.    CAPACITY

e.    LEGALITY

OFFER:

What is an offer?

Who are the parties?

a.    Offeror

b.   Offeree

Requirements of a valid offer:

A. Intent

B. Proper communication

C. Material facts and terms

Special types of offers:

a.   Auctions

b.   Rewards

c.    Advertisements

Termination of offers:

a.    By act of offeree: 1. Rejection    2. Counter offer

b.   By act of offeror: 1. Revocation

c.    By operation of law.

Requirements of valid acceptance:

a.   Unequivocal

b.   Must not change terms of offer

c.    Properly communicated

1.   Authorized means

2.   Mailbox rule

Assent:

Parties who are entering into a contract must have a “meeting of the minds”

Under contract rules there are certain will negate this,

a.   Mistakes

b.   Fraud

c.    Duress/undue influence

d.   Un conscionability

Types of mistakes:

1.   Mistake of fact

This type of contract is enforceable and can be rescinded mutually.

2.   Mistake of value: Contract is enforceable.

Fraudulent misrepresentation:

a.   Fraud in the inducement.

b.   Fraud in the inception.

Duress and undue influence:

a.   Duress = threat in subject of harm

b.   Undue influence = fiduciary relationship and physical or mental illness.

Unconscionability:

a.   Unequal bargaining power(grossly)

b.   Exceptionally unfair terms.

The above are terms are meant for short terminology to remember contracts and its essential elements.

 

ON NEXT SESSION CONSIDERATION, ITS EXCEPTIONS, WRITTEN VS. ORAL CONTRACTS AND ALL TERMS REGARDING CONTRACTS WILL BE DISCUSSED.