Type
Essay
Pages
30 pages
Word Count
2719 words
School
klu
Course Code
contract

law

April 19, 2020
Indian Contract Act 1872
Unit I
Objective of the Act
The objective of the Contract Act is to ensure
that the rights and obligations arising out of a
contract are honoured and that legal
remedies are made available to an aggrieved
party against the party failing to honour his
part of agreement. The Indian Contract Act
makes it obligatory that this is done and
compels the defaulters to honour their
commitments.
Extent and Commencement
It extends to the whole of India except the
State of Jammu and Kashmir
It came into force on the first day of
September, 1872.
The sale of Goods was repealed from this
Indian Contract Act in 1930. Contracts relating
to partnership were repealed in 1932.
Present Contract Act
Basic Principles of Contract (Sections 1 to 75)
Indemnity and Guarantee (Sections 124 to
147)
Bailment (Sections 148 to 181)
Agency (Sections 182 to 238)
Proposal
When one person signifies to another his
willingness to do or to abstain from doing
anything, with a view to obtaining the assent
of the other to such act or abstinence, he said
to make a proposal.
Promise
When the person to whom the proposal is
made signifies his assent thereto, the proposal
is said to be accepted. A proposal when
accepted, becomes a promise.
The person making the proposal is called the
“Promisor” and the person accepting the
proposal is called the “Promisee”.
Consideration
When at the desire of the promisor, the
promise or any other person has done or
abstained from doing, or does or abstains
from doing, or promises to do or to abstain
from doing something, such act or abstinence
or promise is called a consideration for the
promise.
Agreement
Every promise and every set of promises,
forming the consideration for each other is an
agreement.
An agreement not enforceable by law is said
to be void.
Contract
An agreement enforceable by law is a
contract.
Steps involved in the Contract
Proposal and its communication
Acceptance of proposal and its
communication
Agreement by mutual promises
Contract
Performance of Contract
Essential requirements of a valid
contract
Offer and its acceptance
Free consent of both parties
Mutual and lawful consideration for agreement
It should be enforceable by law. Hence, intention
should be to create legal relationship. Agreements of
social or domestic nature are not contracts
Parties should be competent to contract
Object should be lawful
Certainty and possibility of performance
Contract should not have been declared as void under

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