the indian contract act - a group-6 presentation

8/8/2019 The Indian Contract Act - A Group-6 Presentation

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Seventh Outline Level

Eighth Outline Level

Ninth Outline LevelKlik for at redigere

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Presented By :

Prashanth SShalini B

Chaitaniya Das BSudha LahariKrishnamraju U

Indian Contract Act, 1872.Group - 6


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AGENDA1. Introduction (law of contract).2. Meaning and essentials of a valid contract.3. Proposal and acceptance.4. Capacity to contract.5. Consent and free consent.6. Consideration.7. Unlawful consideration and Object.

8. Performance of Contracts.9. Remedies of breach of contract.10. Freedom of contract


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1. Introduction (law of contract).

2. Meaning and essentials of a valid contract.

Prashanth S


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What is the INDIAN CONTRACT ACT, 1872.

1. Introduction


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Classical contract theory: 3 threads .

Contract is a bargain. [consensus ad item]

Will of parties.

Freedom of contract is paramount.

Object of law of contract.

To avoid litigation

To establish set of rules for compliance.

To penalize defaulters.

1. Introduction (law of contract).


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Sections : 238, Chapters : 10

Two parts

# General Principles (Chapters I to VI)

# Some special contracts (Chapters VIII to X)

The act is not exhaustive;It does not deal with Law of Partnership, Sale of goods, negotiableinstruments, insurance etc.

1. Introduction: Overview of Contract Act


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Contract - Defined :

An agreement enforceable by law is a contract

All agreements are contracts if they are made by the freeconsent of the parties competent to contract.

2. Meaning and essentials of a valid contract.


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VALIDCONTRACT

Offer &

AcceptanceContractual

capacity

Free

consent

Lawful consideration

Lawful Object

Agreement notdeclared Void

Possibility ofPerformance

Certainty ofterms

Legal

relation

Legal formalities

2. Meaning and essentials of a valid contract.Contd...


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3. Proposal and acceptance.

4. Capacity to contract.

Shalini B


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Proposal/Offer:

When one person signifies to another his willingness to do ornot to do something, this would be called a proposal or an offer.

The communication of a proposal is complete when it comesto the knowledge of the person to whom it is made.

An offer may be specific or general.

When an offer is made to a definite person or body of persons itis called specific offer. It is generally accepted by the person orpersons to whom it is made.

When an offer is addressed to public it is a general offer.



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Acceptance

When the person to whom the proposal is made signifies his

assent , it is an acceptance of the proposal.

Such accepted proposal is called a promise or an agreement.

OFFER + ACCEPTANCE=AGREEMENT.

Promisor: person who offers the proposal.

Promisee: person to whom the proposal is made

Offer and Acceptance may be expressed or implied.


Contd...


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Requirements of a Person to Enter a Contract

Defined under section 11 of the Indian Contract Act

Is of the Age of Majority according to the law to which he issubject

Is of sound mind.

Is Not Disqualified from contracting by any law to which he is

subject

Is Competent to contract.



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The Persons Ruled Out From Contracts

1. Minors

2. Persons of unsound mind

3. Persons disqualified by law to which they

are subject.

(A) Minor:

An infant or a minor who is not a major.

A person attains majority on completing his 18th year ofage in India


Contd...


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(B) Person of unsound mind :

A person is said to be of sound mind for the purpose of making a

contract if at the time when he makes it he is capable ofunderstanding it and of forming a rational judgment as to itseffect upon his interests

(C) Persons disqualified by law to which they are subject:

An alien enemy during war

It refers to statutory disqualifications imposed on certain personsin respect of their capacity to contract

Foreign sovereigns and ambassadors etc

Corporations.


Contd...


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5. Consent and free consent.

6. Consideration.

Chaitaniya Das B


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Consent : Agreeing upon the same thing in the same sense

Free Consent : Consent devoid of(a) coersion, (b) Undue-Influence,(c) Fraud (d)Misrepresentation (e) Mistake.

Absense of consent renders the transaction void, consent which is notfree would only render it voidable.

(a) coersion : Comitting or threatning to commit any act forbiddenby the indian penal code or an unlawful detaining or threatning to

detain any property to the prejudice of any person to enter into anagreement.

(b) Undue Influence and Duress : The relation subsisting betweenthe parties are such that one of the parties is in a position to dominatethe will of the other and was in a position, and did to obtain an unfair

advantage over the other.



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(c) Fraud : Willful representation made by a party to a contract withthe intent to deceive the other party or to induce such party to enterinto a contract.

(d) Misrepresentation : A false statement made by a person eitherwillfully or innocently.(i) Innocent Misrepresentation(ii) Fradulent Misrepresentation:

(e) Mistake :

(i) Unilateral Mistake(ii) Mutual Mistake (iii)Common Mistake -Misake of fact.

- Mistake of law.


Contd...


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Consideration is the foundation of every contract. The lawinsists on existence of consideration, for the law enforces only those

promises, which are made for consideration.Sec 2(d) of the ICA defines consideration as(a)When at the desire of the promiser(b) the promisee or any other person;(c) has done or abstained from doing, does or abstains from doing,or promises to do or abstain from doing;

(d) something of such act or absistence or promise is called aconsideration for the promise.

6. Consideration.


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Essentials of a valid consideration.(i) It must be at the desire of the promiser.

(ii) Consideration may be past, present or future.(iii) Consideration must be real.(iv) Consideration must be lawful.

"No Consideration - No Contract" Exceptions(i) Natural love and affection(ii) Compensation for services rendered

(iii) Time Bar Debt (iv)Completed Gifts

6. Consideration.

Contd...


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7. Unlawful consideration and Object.

8. Performance of Contracts.

Sudha Lahari


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7. Unlawful consideration and Object.

An agreement will not be enforceable if its object or the consideration isunlawful.

According to Section 23 of the Act, the consideration and the object of anagreement are unlawful in the following cases: What consideration andobjects are unlawful agreement VOID1.If it is forbidden by law2. If it is of such a nature that if permitted, it would defeat the provisions ofany law.3. If it is fraudulent. An agreement with a view to defraud other is void.

4. If it involves or implies injury to the person or property of another.5.If the Court regards it as immoral or opposed to public policy.


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7. VOID AND VOIDABLE AGREEMENTS

Contd...

Void agreement(i)Agreements by person who are not competent tocontract.(ii)Agreements under a mutual mistake of fact material

to the agreement.(iii)Agreement with unlawful consideration.(iv) Agreement without consideration.(v) Agreement in restraint of marriage.(vi)Agreement in restraint of trade(vii)Agreements in restrain of legal proceedings,(viii)Agreements void for uncertainty (Agreements, themeaning of which is not certain, or capable of beingmade certain)Voidable agreements

An agreement, which has been entered into bymisrepresentation, fraud, coercion is voidable, at theoption of the aggrieved party.


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[SECTIONS 37-67] Offer to perform or tender of performanceAccording to Section 38, if a valid offer/tender is made and is notaccepted by the promisee, the promisor shall not be responsible fornon-performance nor shall he lose his rights under the contract.A tender or offer of performance to be valid must satisfy the followingconditions:1. It must be unconditional.2. It must be made at proper time and place, and performed in theagreed manner.WHO MUST PERFORM

Promisor - The promise may be performed by promisor himself. Agent-The promisor may employ a competent person to perform it. Legal Representative - In case of death of the promisor, the Legalrepresentative must perform the promise unless a contrary intentionappears from the contract.


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Contd...

CONTRACTS, WHICH NEED NOT BE PERFORMED

I.If the parties mutually agree to substitute the original contract by a new

one or to rescind or alter it

II.If the promisee dispenses with or remits, wholly or in part the

performance of the promise made to him or extends the time for such

performance or accepts any satisfaction for it.

III.If the person, at whose option the contract is voidable, rescinds it.

IV. If the promisee neglects or refuses to afford the promisor reasonable

facilities for the performance of his promise.


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9. Remedies of breach of contract.

10. Freedom of contract.

Krishnamraju Upendram


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Breach & remedies Breach of contract.

The lawprovides the following remedies to an injured party in case

of breach of contract.

Cancellation or Rescission

Restitution

Specific performance

Injunction

Damages

9. Remedies of breach of contract.


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Freedom of contract : Demonstrates membership of free civil

society in which citizens have autonomy.

Modern libertarianism : Freedom of contract is an expression ofthe independent decision of Separate individuals pursuing their owninterest in a minimal state.



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Every person is competent to contract who is of :

The age of majority.

Sound mind and

Is not disqualified from contracting by any law to which issubject.


Contd...


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THANK YOU!Questions, if any...

the indian contract act - a group-6 presentation

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