Law of Torts.docx

BHAVISHA LAW DIVISION 410, Nandanwan Bhandari Hospital Street, Akhaliya Circle, Chopasni Road, Jodhpur (Raj.) PH: 9782408101, 9810060308

Chapter  –  1 1Unit-1 Formation of Contract (a) General : Definition and characteristics of contract, agreement, promise, kinds of contract-express, implied void, voidable, illegal, executory, standard form of contract. Law of contract  The term “Law” in a broader sense may be defined as the rules of conduct recognized and enforced by the state to maintain peace and order in the society. Following are some of the important definitions of the term law :Salmond  –  “Law is the body of principles recognized and applied by the state in the administration of justice” Blackstone –  Blackstone  – “Law “Law is a rule of civil conduct, prescribed by the supreme power of a state, commanding what is a right and prohibiting what is wrong”  Thus, the law has been b een defined in different terms by different jurists . As a matter of fact, it is not possible to give a single and comprehensive definition of law. Law is not static. It keeps changing to fit the changing requirements of the society. Introduction - The Law of contract deals with the law relating to the general principles of contract. It is the most important part of mercantile law. It affects every person in one way or the other as all of us enter into some kind of contract every day. Contracts create certain legal rights and obligations. Without the law of contract, it would have been difficult to determine and enforce the rights and obligations of the persons. The law of contract determines the circumstances under which a promise or an agreement shall be legally binding on the person making it. It also provides the remedies which are available in a court of Law against a person who fails to fulfill his contracts and other conditions, under which the remedies are available. Implementation of Act  –  The Indian Contract Act, 1872. 1872. Came into force on the 1st Sept. 1872 and it applies to the whole of India except the state of Jammu and Kashmir. Under article 370 of the Constitution of India, the J & K enjoys a special status Indian Contract Act, 1872

Sections 1 - 75

General principles of the law of contract

BEST WISHES FROM BHAVISHA INSTITUTE LAW DIVISION

Special kinds of contracts

Sections 124 - 238

PH: 9782408101, 9810060308

BHAVISHA LAW DIVISION 410, Nandanwan Bhandari Hospital Street, Akhaliya Circle, Chopasni Road, Jodhpur (Raj.) PH: 9782408101, 9810060308 DEFINITION OF THE CONTRACT

1. Pollock “Every agreement and promise enforceable at law is a contract”. 2. Salmond “A contract is an agreement creating and defining obligations between the parties”. SECTION

NAME

DEFINITION

2(a)

Proposal

2(b)

Acceptance

When one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other person either to such act or abstinence, he is said to make a proposal. When the person to whom the proposal is made, signifies his assent there to , the proposal is said to be accepted

2(b)

Promise

2(c)

Promisor and promisee

When the proposal is accepted, the person making the proposal is called as promisor and the person accepting the proposal is called as promisee.

2(d)

Consideration

When at the desire of the promisor, the promisee or any other person has done or abstained from doing something or does or abstains from doing something or promises to do or abstain from doing something, such act or abstinence or promise is called a consideration for the promise.

2(e)

Agreement

Every promise and set of promises forming the consideration for each other, is an agreement.

2(g)

Void agreement

An agreement not enforceable by law is void.

2(h)

Contract

An agreement enforceable by Law is a contract.

2(i)

Voidable contract

2(j)

Void contract

An agreement is a voidable contract if it is enforceable by Law at the option of one or more of the parties there to (i.e. The aggrieved party), and it is not enforceable by Law at the option of the other or others. A contract which ceases to be enforceable by Law becomes void when it ceases to be enforceable.

A Proposal when accepted becomes a promise.

BEST WISHES FROM BHAVISHA INSTITUTE LAW DIVISION

PH: 9782408101, 9810060308

BHAVISHA LAW DIVISION 410, Nandanwan Bhandari Hospital Street, Akhaliya Circle, Chopasni Road, Jodhpur (Raj.) PH: 9782408101, 9810060308 Offer + acceptance = Promise + Consideration = AGREEMENT + Enforceability by Law

CONTRACT

Under section 10 of Indian Contract Act 1872 :“All agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void” The analysis of this definition shows that an agreement becomes a contract only if the following conditions are satisfied :1.  The 2.  The 3.  The 4.  The

agreement agreement agreement agreement

must must must must

be made by the free consent of the parties. be made by the parties who are competent to contract. be made for a lawful consideration and with a lawful object. not be expressly declared to be void.

All the above mentioned conditions must be fulfilled in each and every contract for creating rights and obligations. Essentials of contract In order to become a contract, an agreement must have the following essential elements:1. Two and more parties -  In an agreement there must be at least two parties, one of them making offer and the other accepting it. Person who making an offer is known as offeror and person who accepting an offer is known as offeree. 2. Offer & acceptance  –  In an agreement there must be at least two parties, one of them making offer and the other accepting it. There must be an offer by one party and its acceptance by the other. The offer when accepted becomes agreement.

3.

BEST WISHES FROM BHAVISHA INSTITUTE LAW DIVISION

PH: 9782408101, 9810060308