1. CONTRACT 1872 Applies to whole of India except J & K.
General Provisions relating to Contracts.
There are other laws relating to contracts which are not in syllabus.
Allows contracting parties to make rules for themselves.
Intervention of the Court of Law can be sought in case the contract is violated.
Sale of Goods Act and Partnership Act, was earlier part of the Contract Act, but later on they have been separated.

2. THE STEPS Promise – Section 2(b)
“When a person to whom a proposal is made, signifies his assent thereto, the proposal is said to be accepted. A proposal when accepted becomes a promise “
Agreement – Section 2(e)
“ Every promise and every set of promise forming consideration for each other”
Contract – Section 2(h)
“An agreement enforceable by law”
Basic Conditions
Offer & Acceptance
Mutual Agreement
Consideration

3. ONLY SOME AGREEMENTS ARE CONTRACTS
Basic Condition Intention to create legal relationship between the parties must be present to qualify as a Contract
Ref : Balfour vs Balfour (1919)
Contracts

4. CONDITIONS OF ENFORCEABILITY
Section 10
“All agreements are contracts, if they are made by free consent of parties, competent to contract, for a lawful consideration, and with a lawful object, and are not hereby expressly declared to be void.”
Free Consent
Capacity to Contract
Lawful Consideration
Lawful Object
Not Void

5. ESSENTIAL ELEMENTS OF A CONTRACT
Offer and Acceptance
Mutual Consent
Intention to create legal relationship
Free Consent
Capacity to Contract
Lawful Consideration
Lawful Object
Must not be void
Must be certain
Must not be impossible
Must be in writing and registered when required by the relevant law

6. ENFORCABILITY-WISE CONTRACTS
Valid = enforceable by law
Void = not enforceable by law or has ceased to be be enforceable by law
Voidable = Can be terminated by one party , but not by the other parties.
Unenforceable = Cannot be enforced because of technical defects

7. FORMATION OF CONTRACTS
Expressed = Contract in writing or by words of mouth
Implied = Contract by act or conduct of parties
Quasi= Contracts without intention ( but based on Equity)

8. PERFORMANCE OF CONTRACT
Unilateral = When one party has already performed his part
Bilateral = When both parties have to perform their part
Executed = Completely performed by both the parties
Executory = Something remains to be performed by one or the other party