1. INDIAN CONTRACT ACT-1872

2. HISTORY OF INDIAN CONTRACT ACT - 1872 EEEEnforced w.e.f. September 1, 1872. AAAApplicable to whole of INDIA except J&K CCCConcerned with rights in PERSONAM AAAAs distinguished from rights in REM

3. A CONTRACT is an agreement creating and defining obligations between the parties According to HALSBURY, it is, “an agreement between two or more persons which is intended to be enforceable at law & is constituted by the acceptance by one party of an offer made to him by the other party to do or to abstain from doing some act.”

4. COMPONENTS OF CONTRACT An Agreement It involves proposal or offer by one party and acceptance of the same by the other party. AGREEMENT = OFFER + ACCEPTANCE Enforceable at law An agreement to become a contract must give rise to legal obligations. It must create legal relations and not merely social or domestic relations. CONTRACT = AGREEMENT+ENFORCEABILITY AT LAW Leading Case: BALFOUR V. BALFOUR

5. ELEMENTS OF A VALID CONTRACT  Offer and acceptance  Intention to create legal relationship  Lawful consideration –QUID PRO-QUO  Capacity of parties (Sec. 11)  Minor  Persons of unsound mind  Persons disqualified by law to which they are subject  Free consent (Sec. 13)  Coercion Undue Influence  Fraud Misrepresentation  Mistake  Lawful object  if forbidden by law  of such nature that if permitted it would defeat the provisions of any law any law

6. Elements of a valid contract  fraudulent  involves injury to person or property  Court regards it immoral or opposed to public policy  Certainity of meaning  Possibility of performance  Not declared to be void or illegal  Legal formalities

7. CLASSIFICATION OF CONTRACTS VALID CONTRACTS VOID CONTRACT VOID AGREEMENTS VOIDABLE CONTRACTS UNFORCEABLE CONTRACTS ILLEGAL CONTRACTS EXPRESS CONTRACTS IMPLIED CONTRACTS QUASI CONTRACTS EXECUTORY CONTRACTS EXECUTED CONTRACTS ENFORCEABILITY PERFORMANCE FORMATION

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