Contract 1
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This document summarizes key aspects of contract law under the Indian Contract Act, including: 1) Essential elements of a valid contract include two competent parties, mutual consent (offer and acceptance), lawful consideration, lawful object, and certainty of terms. 2) Capacity to contract may be affected by factors such as minority, unsoundness of mind, or legal disqualification. Consent must be free and not obtained through coercion, undue influence, misrepresentation, or fraud. 3) Agreements can be void or voidable if the consent was not free, or if the consideration or object was unlawful in whole or in part. Contingent contracts may be enforced depending on whether the contingent event
Contract 1
- 1. CONTRACT 1 (UNIT 2) UNIT 2 Capacity to Contract Minors Agreementandits Effects AgreementofPersonsof UnsoundMind and Persons Disqualifiedbylaw Free Consent-Coercion,Undue Influence,Misrepresentation Fraud, Mistake Legalityof Object VoidAgreements ContingentContracts Free Consent(Sec14): (Asia Page 15) 10 Asia 12 All agreementsare contracts,if theyare made by the free consentof the parties, competenttocontract, fora lawful considerationandwithalawful objectandare not herebyexpresslydeclaredtobe void Whentwo or more competentparties(Sections11and 12) freelyconsented (Sections13 to 22) to enterintoan agreeementnotdeclaredvoidwithalawful object(Sections23to 30) for a lawful consideration(Sections 2(d) andSection25), the contract is saidto be a validcontractundersec 10 of the indiancontract. Essentialsof Contract: (Section10) Contract issomethingmore thanagreement.Therefore itissaidthatall contracts are agreements, butall agreementsare notcontracts.To constitute a contract the followingconditionsare tobe satisfied. i) Two parties(OfferorSec.2(a) &AcceptorSec.2(b); ii) Consensus-ad-idem(identityof minds) iii) Capacityto contract (Sec.11) iv) Free Consent(Sec.14) v) Lawful Consideration(Sec2(d)) vi) Legal Relationship vii) Lawful Object(Sec23,26,27,28 &30) viii) Termsmust be certain;and ix) Possibilityof Performance 11 Capacity/CompetencetoContract 12 What issoundmindfor the purposesof contracting 13 Definitionof Consent;Twoor more partiesare saidto be consent,whenthey agree uponthe same thinginthe same sense andat the same time. 14 Definitionof Free Consent:Consentissaidtobe free whenitisnot causedby Coercion,Undue Influence,Fraud,Misrepresentationand Mistake. 15 Coercion 16 Undue Influence 17 Fraud
- 2. 18 Misrepresentation 19 Voidabilityof agreementswithoutfreeconsent 20 Mistake of Fact 21 Mistake of Law 22 Contract causedbymistake of one party as to matterof fact 23 What considerationsand objectsare lawful,and whatnot 24 Agreementsvoid,if considerationsandobjectsunlawfulinpart. 25 Asia 63 A Contract withoutConsiderationisVoid,unlessitisinwritingandregistered,or isa promise tocompensate forsomethingdone,or isa promise topay a debt barredby limitationlaw 25(1) Love andaffection 25(2) CompensationforvoluntaryServices 25(3) Time barreddebts An agreemententeredinto againstthe interestsofgeneral publicis deemedtobe opposedto public policy. In otherwordsan agreementwhichisharmful topublic welfare issaidtobe opposedtopublicpolicy. Sections 26,27,28,30. 26 Agreementinrestraintof marriage,void. 27 An agreementinrestraintof trade isVoid 28 Agreementsinrestraintof legal proceedingsvoid. 29 Agreementsvoidforuncertainty (Ummeaningagreements) *30 *WageringAgreementorContractof Wager: Agreementsbywayof wager void. *CONTINGENTCONTRACT (Sec 31-36) It is a sort of conditional contract and the conditionis of certain nature 31 ContingentContractdefined 32 Enforcementof contractscontingentonan eventhappening 33 Enforcementof contractscontingentoneventnothappening 34 Wheneventonwhichcontract iscontingenttobe deemedimpossible,if itisthe future conductof a livingperson 35 Whencontracts become void,whichare contingentonspecifiedeventnot happeningwithinfixedtime.
- 3. Whencontracts may be enforced,whichare contingentonspecifiedeventnot happeningwithinfixedtime 35 Agreementscontingentonimpossibleevents,void. 36 AgreementsContingentonpossible eventsvoid.