Citizen Point of View Lawyer Legislator Judge Definition of Law Citizen Point of View Lawyer Legislator Judge

Definition of Law Rules of conduct if recognized by state & enforced by it on people are termed as law

English Mercantile law Statute Law Judicial Deacons Customs & Usages Sources of Law English Mercantile law Statute Law Judicial Deacons Customs & Usages

Definition of Agreement Every promise and every set of promises forming consideration for each other

Essentials of Valid Contract Offer & Acceptance Intention to create legal relationship Balfour Vs Balfour Lawful Consideration Capacity of Parties Free Consent Lawful Object Agreement not declared void Certainty & possibility of performance Legal formalities

Classification of Contracts Voidable Contract Void Contract Illegal Agreement Unenforceable Contract Express Contract Implied Contract Executed Contract Executory Contract Unilateral Contract

Offer & Acceptance Legal rule as to offer Should give rise to legal obligations Terms must be definite Taylor vs Portington Offer be different from intention Must be communicated Lalman vs Gauri dutt Should be with intention to receive assent No terms of non-compliance Statement of price not an offer

Special terms in contract Parker vs SE Rail Cross offers

Legal Rules as to Acceptance It must be absolute Neale vs Merret Must be communicated Brogden vd Metroploitan Rail Co According to mode prescribed Reasonable time It cannot precede an offer Must have intention to fulfill terms of the promise Acceptance only by party to whom offer is made Accept before offer lapses Cannot be implied from silence

Communication of offer, Acceptance and Revocation

Free Consent There is free consent in the absence of Coercion Undue influence Fraud Misrepresentation Mistake

Mistake is of two types Mistake of law Mistake of fact

1. Mistake of law of the country 2. Mistake of the foreign country

1. Bilateral Mistake 2. Unilateral Mistake Mistake of Fact 1. Bilateral Mistake 2. Unilateral Mistake

Bilateral Mistake 1. Mistake as to the subject matter 2. Mistake as to the possibility of performance

Mistake as to the subject matter 1. Mistake as to the existence of subject matter Case Courturier vs Hastie 2. Mistake as to the identity of subject matter Raffel vs Wichelhaus 3. Mistake as to the quality of subject matter nicholson vs smith 4. Mistake as to the quantity of subject matter 5. Mistake as to the title of subject matter 6. Mistake as to the price of subject matter

Unilateral Mistake 1. Mistake as to the identity of the person 2. Mistake as to the nature of the contract

Effect of Coercion 2. Threat to commit suicide

Undue influence Effect of Undue influence 2. Burden of proof 3. Rebutting of the presumption

Misrepresentation & Fraud Requirements of misrepresentation Material fact It must have induced Must have acted It is wrong & person making believes it to be true No intention to deceive Need not be made directly

Fraud The statement is not true and person making it knows about it Active concealment of fact Promise made with no intention to perform Any act to deceive Any act declared to be fraudulent

Consequences of Misrepresentation Can rescind the contract Insist to be placed in the same situation

Essentials of fraud There is representation which is false The representation must relate to material fact Representation made before conclusion of contract Had the knowledge that it is false makes it recklessly The party acted on it Must have been deceived Suffered a loss