the indian contract act,1872
TRANSCRIPT
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Valid contracts and it’s Elements
Mahesh Gupta
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The Indian contract act,1872 came into force on 1st Day of sep. 1872.
It extends to the whole of India except Jammu &Kashmir.
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An agreement enforceable by law is a contract.
For example:-A agrees to sell his car to B for Rs. 50,000.This agreement gives rise to obligation of
part of A to deliver the car and B to make the payment.
(Parties are bound to do Something)
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When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted.
Proposal when accepted becomes a promise.
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1.Free consent of parties
2.Competent to contract
3.Lawul consideration 4.Lawful object
5.Not declared to be void
6.Possibility of performance
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Consent is said to be free when it is not caused by coercion, fraud, misrepresentation or mistake.
For example:-A threatens to kill B if he does not sell his property worth 10 lacks to him at Rs.50,000.
This is voidable at the option of B(as the consent is caused by coercion)
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Section 11 deals with capacity of the persons to enter into contracts.
According to section 11 person competent to contract are:-
1. Person who has attained majority
2. Is of sound mind and
3.Not disqualified from contracting by the law to which he is subject.
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The agreement must be supported by consideration .
Consideration means SOMETHING Return(quid pro quo)
The agreement is enforceable only when both the parties give something and get something in return .
Consideration may consist of an act or promise to do or abstain from doing something.
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A agrees to sell his car to B or Rs.50,000.Here B’s promise to pay the sum of rupees 50,000 is consideration of A’s promise to sell the car and A’ s promise to sell the car is the consideration for B’s promise to pay rupees 50,000.
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The object of the agreement must be lawful.The object is consideration lawful unless it is
forbidden by LAW.
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A,B & C agree to share profit acquired by them by fraud.
In this case object of the agreement is not lawful.
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There are certain agreements which are expressly declared void by the law.
The agreement must not have been declared void.
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Agreement in restraint o marriage is void.A agrees to pay B Rs. 1,00,000 if he does not
marry C this is in restraint of marriage and hence void.
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According to section 56 of the contract act, the agreement should be possible o performance , otherwise the agreement is void.
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According to section 29 of the contract act, the agreement must be certain or capable of being made certain, If not the agreement is void.
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Prepared by…….Mahesh gupta
THANK YOU