INDIAN CONTRACT ACT,1872INDIAN CONTRACT ACT,1872

Presented To:- Presented To:-

Dr. RAJENDRA MISHRADr. RAJENDRA MISHRAPresented By:-Presented By:-

RAJAT REKHI (24-MBA-07)RAJAT REKHI (24-MBA-07)

INTRODUCTIONINTRODUCTION

HISTORYHISTORY Came into existence on 1Came into existence on 1stst September ,1872 September ,1872 Applicable throughout India Except Jammu Applicable throughout India Except Jammu

and Kashmir.and Kashmir. Concerned with :-Concerned with :-

1)1) Right in Right in Personam.Personam.

2)2) Right in Right in Rem.Rem.

OBJECTIVE OBJECTIVE Rights and Obligations arising out of the Rights and Obligations arising out of the

contract are Honoured.contract are Honoured. Remedies are available to aggrieved persons Remedies are available to aggrieved persons

of contract.of contract.

DEFINITIONDEFINITION

It is an agreement which creates and defines It is an agreement which creates and defines obligation between the parties, will be enforced obligation between the parties, will be enforced by Court of law.by Court of law.

According to HALSBURY;According to HALSBURY; “ “An agreement between two or more persons An agreement between two or more persons

which is intended to be enforceable at law & is which is intended to be enforceable at law & is constituted by the acceptance by one party of an constituted by the acceptance by one party of an offer made to him by the other party to do or to offer made to him by the other party to do or to abstain from doing some act.” abstain from doing some act.”

AGREEMNETLEGAL

OBLIGATION

EXAMPLES OF CONTRACTEXAMPLES OF CONTRACT

PURCHASING MILK PURCHASING GROCERY

BOARDING AND PAYING FARE PURCHASING A NEWSPAPER

COMPONENTS OF CONTRACTCOMPONENTS OF CONTRACT

AGREEMENTAGREEMENTIt come into existence when party offers or make a proposal to the other It come into existence when party offers or make a proposal to the other

party and the other party accepts it, an accepted proposal or a party and the other party accepts it, an accepted proposal or a promise.promise.OFFER OFFER ACCEPTANCEACCEPTANCE AGREEMENT AGREEMENT

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LEGAL OBLIGATIONLEGAL OBLIGATIONIt is an undertaking to do or to abstain from doing some definite act. It is It is an undertaking to do or to abstain from doing some definite act. It is

enforceable by law.enforceable by law.EXAMPLE :- EXAMPLE :- BALFOUR V. BALFOURBALFOUR V. BALFOUR

ESSENTIAL OF VALID CONTRACTESSENTIAL OF VALID CONTRACT

OFFER AND ACCEPTANCE.OFFER AND ACCEPTANCE. LAGAL RELATIONSHIP.LAGAL RELATIONSHIP.

CONSENSUS AD IDEM.CONSENSUS AD IDEM.

COMPETANCY OF PARTIES .COMPETANCY OF PARTIES .

FREE CONSENT.FREE CONSENT.

LAWFUL CONSIDERATION.LAWFUL CONSIDERATION.

LAWFUL OBJECTLAWFUL OBJECT

ESSENTIAL OF VALID CONTRACTESSENTIAL OF VALID CONTRACT NOT DECLARED TO BE VOID.NOT DECLARED TO BE VOID.

CERTAINTY AND POSSIBILITY OF PERFORMANCE.CERTAINTY AND POSSIBILITY OF PERFORMANCE.

LEGAL FORMALITIES.LEGAL FORMALITIES.

CLASSIFICATION OF CONTRACTCLASSIFICATION OF CONTRACT

CONTRACTCONTRACT

ENFORCEABILITYVALID CONTRACTS

VOID CONTRACT VOID AGREEMENTSVOIDABLE CONTRACTSUNFORCEABLE CONTRACTSILLEGAL CONTRACTS

ENFORCEABILITYVALID CONTRACTS

VOID CONTRACT VOID AGREEMENTSVOIDABLE CONTRACTSUNFORCEABLE CONTRACTSILLEGAL CONTRACTS

FORMATIONEXPRESS CONTRACTSIMPLIED CONTRACTSQUASI CONTRACTS

FORMATIONEXPRESS CONTRACTSIMPLIED CONTRACTSQUASI CONTRACTS

PERFORMANCEEXECUTED CONTRACTSEXECUTORY CONTRACTS

ORUNILATERAL CONTARCTSBILATERAL CONTRACTS

PERFORMANCEEXECUTED CONTRACTSEXECUTORY CONTRACTS

ORUNILATERAL CONTARCTSBILATERAL CONTRACTS

PRACTICAL EXAMPLEPRACTICAL EXAMPLEHINDUSTAN COPPER LTD.,KOLKATA

PRACTICAL EXAMPLEPRACTICAL EXAMPLE

PRACTICAL EXAMPLEPRACTICAL EXAMPLE

PRACTICAL EXAMPLEPRACTICAL EXAMPLE

THANK YOU!THANK YOU!