The indian contract act ,1872

Introduction• This act applies all over india excepts J&K.

• It was effective from 1st sept, 1872.

• It was passed by the british parliament.

Types of contract

On the basis of creation

1.Oral contract.

2.Written contract.

3.Implied contract.

On the basis of enforceability

1.Valid contract

2.Void agreement

3.Void contract

4. illegal contract

5.Voidable contract

Elements of valid contract

• Offer & acceptance.• Legal intention.• Capacity of parties.• Lawful consideration.• Free consent.• Lawful object.• It must not be expressly declared by law.

On the basis of performance• Executory contract –performance of both

parties are outstanding.

• Executed contract – when both party has to perform together.

Miscellaneous types of contract

• Bilateral contract – when both parties has to perform.

• Unilateral contract – when one party has to perform.

• Tacit contract – a contract understood by conduct.

Formal contract• Contract of record –These contracts

derive their binding force from the authority of the court.

• Contract under seal –These contracts derive their binding force from its form alone .it is sealed and delivered by the the parties.

Classification of offer• General offer –it is an offer made to the public at

general.• Special offer –when offer made to a definite person.• Cross offer –when two parties exchange identical

offers in ignorance at the time of each other’s offer.• Counter offer – counter offer amounts to rejection of

the original offer. • Standing ,open or continuing offer – an offer is

allowed to remain open for acceptance over a period of time.

Rules as to offer• The offer may be expressed or implied• The offer must be distinguished from an

invitation to offer.• An offer may be specific or general.• The offer must be communicated.• The offer must be made with a view to

obtaining the consent of the offeree.• An offer may be conditional.

Acceptance• Acceptance must be absolute and unqualified.• Communicated to offeror.• Acceptance must be in the mode prescribed.• Acceptance must be given in a reasonable

time.• Mere silence is not acceptance.• Acceptance by conduct.