classification based on performance.pptx

8/20/2019 Classification based on Performance.pptx

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Classifcation based onPer ormance

Unilateral contract – A unilateral contract isone in which only one party has to ful ll hisobligation at the time of the formation of thecontract and the other party having ful lledhis obligation at the time of the contract orbefore contract comes into existence.Amina permits a coolie to put his luggage to a

carriage. The contract comes into existenceas soon as the coolie place the luggage. SoAmina has only to ful ll his part.


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Bilateral Contract – A bilateralcontract is one in which the obligation

on the part of both the parties to thecontract are outstanding at the time ofthe contract.

Athulya promises to paint a picture inreturn for which Saranya promises toRs 1 .Executed Contract – !f both parties of a contracthave performed their respective obligation "contract is #nown as an executed contract.Amal contracts with $essy to buy a house for Rs1" " . Amal paid Rs. 1" " to $essy. $essyexecuted the sale deed and delivered itspossession.


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Executory contract – An executorycontract is one in which both partieshave not yet performed their obligationseither wholly or in which there remainssomething to be done on both sides.

Rahul agrees to paint a picture for Re%ithfor Rs. & . Rahul has not painted the

picture and Re%ith has not paid the pricealso.


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Classifcation based onFormation

Express contract – !f the terms of acontract are expressly agreed upon'whether orally or in writing( at the time

of the formation of the contract" thecontract is said to be an expresscontract.

)ollin writes to Aby * ! am willing to sellmy car to you for Rs & " +. Abyaccepts )ollin,s o-er by another letter.


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Implied contract – An impliedcontract is one which is inferred from

the act or conduct of the parties orcourse of dealings between them.

il%ith gets into a public bus. Then he

enters into an implied contract withthe authorities of the bus that hewishes to travel in the bus.


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Quasi Contract – /nder certain circumstances"law itself creates legal rights and obligations

against the parties . These obligations are #nownas 0uasi contracts. !t is created by law and it onlyresembles a contract.

• Ai%u " a trademan leaves goods at Sa%id,s houseby mista#e. Suppose Sa%id treats the goods as hisown" then Sa%id is bound to pay to Ai%u areasonable price for the goods.

.


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• FFER - According to Sec.2(a), when a person made aproposal, when he signify (indicate) to another his willingnessto do or to abstain (withdraw) from doing something.

) 2S32S/S 4 A – ! 354 According to Sec.13, meeting of minds or identity ofminds or receiving the same thing in same sense atsame time. Synonyms 4 meeting of the minds when twoparties are in an agreement 'contract( bothhave the same understanding of the terms ofthe agreement.


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T673S 8 883R

Express ofer Implied ofer

Speci c ofer General ofer Cross ofer Counter ofer Standing ofer


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x p r e s s o f f e r - When offer is given to

another person either in writing or in oral.I m p l i e d o f f e r - When offer is given toanother person neither in writing nor in oral.

Spec i f i c o ff e r - When offer is given to aspecific person.

G e n e r a l o f f e r - When offer is given toentire world at a large.


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C r o s s o f f e r - When both the personsare making identical offers to each otherin ignorance of other’s offer.

C o u n t e r o f f e r - When both the persons are making offers to each otherwhich are not identical in ignorance ofother’s offer.

S t a n d i n g o f f e r - An offer whichremains continuously enforceable for acertain period of time.


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When a party to an agreement promises todo something he/she must get “something”

in return .This “something” is defined asconsideration.1)It must move at the desire othe promisor.2)It ma move ! the promisee .")It must !e past #present or uture.

$)It need not !e ade%uate .&)It must !e real .')It must not !e illegal # immoral oropposed to pu!lic polic .


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hat Are !"asi #ontracts$

• 9:uasi, means 9almost, or9apparently but not really, or 9as

if it were,• A 0uasi contract is a contractthat exists by order of a court"

not by agreement of the parties• )ourts create 0uasi contracts to

avoid the un%ust enrichment of aparty in a dispute over payment


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Negotiable Means transferable from one personto another in return for consideration.Instrument means a written document by which

a right is created in favour of some person. Negotiable Instrument literally means is a

written document transferable by delivery


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e nition42egotiable !nstrument

• Sec 13 (1) of N I ct states that

! negotiable instrument means a promissory note" bill of e#change orche$ue payable either to order or to

bearer%.


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&ssential 'eatures of a Negotiable Instrument

1.2egotiability4 it means transferability. !t can betransferred without any formality.

;. 7roperty4 The possessor of negotiable

instrument is presumed to be the owner of theproperty contained there in.


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&. )ontract4 A negotiable instrument isa contract to pay money.

>. 7rompt payment4A negotiableinstrument enables the holder of theinstrument to expect promptpayment.

?. A negotiable instrument can betransferred any number of times till itis at maturity and the holder of theinstrument need not give any notice


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ypes of negotiable instruments .A. 2egotiable instruments recogni@ed by statute.1( 7romissory notes;( $ill of exchange


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A. 7romissory note

Sec.=*A promissory note is an instrument in

writing containing an unconditionalunderta#ing signed by the ma#er" topay a certain sum of money only to

or to the order of a certain person orto the bearer of the instrument+.


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7arties

Two parties The person who ma#es thepromissory note and promises to payis called the ma#er. The person to whom the payment isto be made is called the payee.

3g ! promise to pay A or order Rs& .


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Specimen of a promissorynote

Rs &3rna#ulam

ate

n demand " ! promise to pay 5r Ra%esh or order" the sum of Rs & ' Rupees 8ive Thousand only(with interest at BC per annum for value received.

To Ra%esh

'Address( SdD4 Stamp $abu


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3ssentials of a promissory note

1. *ro notes must be in writing+. *romise to pay must be e#press.

3,efinite and unconditional-. o be signed by the ma er /.0ertainty in the case of parties.

. 0ertainty in the case of sum of money2. *romise to pay money only


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. 'ormalities are not essential. 'ormalities li e time"place registration Number etc is not re$uired. 4ut itmust be stamped as per stamp act.

5. It may be payable on demand or after a definite period of time 6 7here there is no time is mentionedthe note is payable on demand.


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4. 4ill of change

Sec.&*A bill of exchange is an instrument in

writing containing the unconditionalorder" signed by the ma#er"directing a certain person to paya certain sum of money only to or tothe order of a certain person or tothe bearer of the instrument+.


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*arties to a 4ill of change

Three parties

1.The ma#er of bill of exchange iscalled the drawer.

;.The person who is directed to pay iscalled the drawee.


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Specimen of $ill of3xchange• 8s /999

*lace. ,ate.

:n demand pay to 8a;esh or order" the sum of 8s/999


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• =ere 4abu is the drawer• ;ith is the drawee ( cceptor)• 8a;esh is the payee


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&ssentials of 4ill of change.

1. The instrument must be in writing.;.The instrument must contain an order to pay.. The payee must be certain.?. !t must comply with the formalities as

regards date" stamp etc.


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). )he0ue

• A che0ue is a bill of exchange drawn on aspeci ed ban#er and not expressed to bepayable otherwise than on demand. That is the

drawer directs the ban# to pay a certain sum topayee on his demand.

'A bill of exchange is an instrument in writingcontaining an unconditional order" signed by

the ma#er" directing the ban#er to pay a certainsum of money only to or to the order of acertain person or to the bearer of theinstrument(


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e nitionSec.> * a bill of exchange drawn upon a

speci ed ban#er and payable on demand+Rules

1. All che0ues are bill of exchange but all billof exchanges are not che0ues.;. /sually ban#s provide their customers

with printed che0ue forms which are lledup and signed by the drawer.


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=. A che0ue must be dated.&. A che0ue becomes due for payment on the date

speci ed in it.

>. A che0ue drawn on a future date isvalid but it is payable on and afterthe date speci ed. Such che0ues arecalled post dated che0ues.


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3ssentials of a )he0ue

1. !t must be unconditional order;. !t must be in writing. rawer" drawee and payee must be certain?. The payee must be certainB. The amount must be payable on demand


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Endorsement The literal meaning of the word endorsement

is writing on the bac# of an instrument./nder the 2! Act" it means" writing of the

name of the endorsee on the bac# of theinstrument by the endorser under hissignature with the ob%ect of transferring therights therein.

!f an instrument is fully covered withendorsements and no space is left" furtherendorsement can be made on a slip of paper'called alonge ( annexed thereto


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Kind o Endorsement

1. $lan# or general endorsement Eust put the signature of endorser without

mention the name of endorsee

3g sdD4.5ohan;. Special or full endorsement!ncluding the name of endorsee3g7ay to Fhosh or order sdD4

.5ohan


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&. 7artial endorsementGhen an endorser endorses only a

part of the amount mentioned in theinstrument. it is irregular

f h


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Type of che0ues

1. pen che0ue;. )rossed che0ue


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ypes of crossing a che$ue

) >eneral crossing4) Special crossing0) Not Negotiable 0rossing,) 8estrictive crossing


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1. Feneral crossingA che0ue must contain two parallel

transverse lines.

Ghen a che0ue is crossed generallythe paying ban#er shall not pay itother than to a ban#er" holder cannotget payment over the counter of

ban#


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;. Special crossing The che0ue must contain the name of

a ban#er . The che0ue must be paidonly to the ban#er to whom it iscrossed.

Iere the payee can receive theamount only through the ban#ernamed on the che0ue.

classification based on performance.pptx

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