1. Prepare By: Asst. Prof. Pratik Paun Shri H.D.Gardi MBA college Rajkot

2.  Sec-2(a)- when 1 person signifies to another his willingness to or to abstain from doing anything with a view to obtaining the assent of that other either to such act or abstinence, he is said to make a proposal. E.g. A proposes B to sell his house for rs.200000 Sec-2(b)- when the 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. E.g. A proposes to B to sell his house for rs200000. B sends a letter accepting the proposal. A’s proposal now becomes a promise. Promise

3.  Sec-2(c)- the person making the proposal is called the ‘promisor’ and the person accepting the proposal is called ‘promisee’. E.g. A proposes B to sell his house for rs200000. B sends a letter accepting the proposal. A’s proposal now becomes promise. Here, A is the promisor & B is the promisee. Sec-2(e)- Every promise and every set of promises, forming the consideration for each other, is an agreement. To form an agreement there must be a proposal or offer by one party and it’s acceptance by the other. Agreement

4.  Sec-2(g)- An agreement not enforceable by law is said to be void. E.g. A entered into an agreement with B for gambling. Sec-2(h)- An agreement enforceable by law is a contract. E.g. Krishnendu promised to sell a book to padmabati for rs.200 on receipt of the price which padmabati accepted and paid the price. There is a contract between the 2. from the definitions given by various authors and as per the act, an agreement enforceable by law is a contract. The basic element of a a contract are the agreement and it’s enforceability. Contract = Agreement + Enforceability Contract

5.  Executed contract  Executory contract  Unilateral contract  Bilateral contract  Express contract  Implied contract  E-contract

6.  Two parties  Offer & acceptance  Free consent  Capacity of parties  Lawful consideration  Lawful object  Legal relation  registration

7.  The acceptance must be absolute & unqualified.  The acceptance must be expressed in some usual and reasonable manner, unless the proposal prescribes the manner in which it’s to be accepted.  If the proposor fails to do so, he accepts the acceptance.

8.  An offer is a proposal by one party to another to do or not to do anything with a view to obtain his assent thereto. E.g. A tells B to marry her if she agrees. This is an offer. A says to B that he desires to marry her. It’s not an offer made by A to B. as per sec 2(a) of the Indian contract act,1872 when 1 person signifies his willingness to do or to abstain from doing anything with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal.

9.  General offer  Special offer  Cross offer  Counter offer  Open offer  Standing offer

10.  Legal relationship  Define & unambiguous  Non-compliance term  Express or implied  Special or general  Communication  Statement of price  Declaration of intention

11.  Absolute & unqualified  Communication to offeror  Mode of acceptance  Time  Mere silence is not acceptance  If can’t precede an offer  Acceptance by conduct

12.  When at the desire of the promisor, the promisee 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.

13.  Natural love & affection  Voluntary compensation  Time-barred debt.  Gift  Inadequate consideration

14.  Must be at the desire of the promisor  Must move from the promisee or any other person  May be past or present  Need not be adequate  Must be real  May be an act, abstinence or forbearance  Must not be unlawful, immoral to public

15.  The agreement is void  Minor can be a beneficiary  Minor can always plead minority  Rectification on attaining majority  Benefit under void agreement  Contract by guardian  Specific performance

16.  It is forbidden by law  It is of such nature that if permitted it would defeat the provisions of the law  It is fraudulent  It involves or implies injury to the person or property of another

17.  A contract which ceases to be enforceable by law becomes void when it ceases to be enforceable.  For example: A contract to pay B a sum of money when B marries C. C dies without being married to B. The contract become void. An agreement which is enforceable by law at the option of one or more of the parties thereto, but not at the option of the other or others is a voidable contract. For example: B contract with A to do some work for A for rs.100000. B is ready to do the work but A prevents him from doing the work. The contract is voidable at the option of B. Voidable contract

18.  Agreement by way of wager are void. No suit shall be brought for recovering anything alleged to be owned on any wager, or entrusted to a person to abide the result of any game or other uncertain event on which any wager is made.

19.  Promise to pay money or money’s worth  Happening of uncertain event  No control over the event  Each party must stand to win or lose  No other interest

20.  A contingent contract is a contract to do or not to do something, if some event, collateral to such contract, does or does not happen.  For example: A contract to pay to B rs.10000 if B’s house is burnt. This is a contingent contract.

21.  Contingent on an event happening  Contingent on an event not happening  Contingent on an event to be deemed impossible  Contingent on happening of specified event within fixed time  Contingent on impossible events

22.  A quasi contract is a contract created by law. Sometimes the law may say that a person is receiving more than what he actually entitled to and he should pay the excess to the person who actually entitled to such payment.  A quasi contract is a contract imposed by law and not by agreement between parties.

23.  Supply of necessaries  Payment by an interested person  Non-gratuitous act  Finder of goods  Coercion