Legal Study – Internet Of Educations

Contingent Contract with the suitable act, case law, example according to Indian contract act 1872

IOE_Nitin — Sun, 26 Feb 2023 16:46:43 +0000

Contingent contract with the suitable act, case law, example according to Indian contract act 1872

Introduction:

A contingent contract is a contract where the performance of the contract is dependent on the occurrence of a particular event. According to Section 31 of the Indian Contract Act, 1872, a contingent contract is a contract to do or not to do something if an uncertain future event happens or does not happen. The event must be such that it is capable of being proved to be either certain or uncertain.

As per Section 31 of the Act, a contingent contract is a contract to do or not to do something if an uncertain future event happens or does not happen. The event must be such that it is capable of being proved to be either certain or uncertain.

The section further provides that if the event becomes impossible, the contract becomes void. However, if the event becomes impossible due to the fault of a party to the contract, that party is liable for any damages resulting from such failure.

Essential elements of a contingent contract:

Uncertain future event: The performance of the contract must be dependent on the occurrence or non-occurrence of an uncertain future event.
Possibility of the event happening: The uncertain event must be possible, meaning it must not have already occurred or be impossible to occur.
Parties must have knowledge of the contingency: Both parties must have knowledge of the contingency at the time of entering into the contract.
Contract must not be void: The contract must not be void or illegal.
Performance must become impossible: If the uncertain event does not occur, or if it becomes impossible to occur, the contract becomes void.

Example of a contingent contract:

Suppose that a company enters into a contract with a supplier for the delivery of a certain amount of goods. The supplier promises to deliver the goods within a certain time frame, provided that the company pays the agreed-upon price. However, if the goods are destroyed before delivery due to an unforeseen event such as a natural disaster, the supplier is not obligated to deliver them. The contract is contingent on the occurrence or non-occurrence of the uncertain event of the goods being destroyed, and the performance of the contract depends on the occurrence or non-occurrence of that event.

For example, A agrees to pay B a sum of money if it rains tomorrow. This is a contingent contract, as it is dependent on an uncertain future event (rain). If it rains tomorrow, A is obligated to pay B the agreed sum of money. However, if it does not rain, A is not required to pay.

In another example, A agrees to sell a specific piece of land to B if it is not acquired by the government. This is a contingent contract, as it is dependent on an uncertain future event (government acquisition). If the government does not acquire the land, A is obligated to sell it to B. However, if the government does acquire the land, the contract becomes void.

KINDS OF CONTINGENT CONTRACT :

The Indian Contract Act, 1872’s Sections 32 to 36 list several types of dependent contracts, including:

i) According to Section 32. Contracts that are subject to change if a certain event occurs cannot be legally implemented until the event has actually occurred. Such a contract is void if the occurrence becomes improbable.

An agreement to give B a certain amount of money when B weds C is an example. C passes away before getting wedded to B. The agreement is invalid.

.ii) Section 33 states that a contingent contract to do or not do something may be implemented by the law if an uncertain future event does not occur when it becomes impossible for it to occur.

Example: If a specific ship does not arrive, A agrees to give B a certain amount of money. The vessel has sank. When the ship sinks, the agreement can be put into effect.

iii) According to Section 34, if a future event on which a contract is contingent is the course of action that a person will take at an unspecified time, the event will be deemed to be impossible once that person takes any action that makes it impossible for him to take that action within a specific timeframe or absent other contingencies.

Example: If B marries C and C marries D, A agrees to give B a certain amount of money. The union of B and C must now be regarded as impractical, even if D were to pass away and C were to subsequently wed B.

iv) Section 35 states that:- contingent contracts to do or not to do anything if a special uncertain event occurs within as specified time become void if such event has not occurred by the expiration of the time fixed, or if such becomes impossible before the time fixed.

Example: If a specific ship returns within a year, A promises to give B a certain amount of money. If the ship returns within a year, the contract may be put into effect; however, if the ship is burned within that year, the contract is invalid.

v) According to Section 36, agreements that are dependent on the occurrence of an impossible event are void regardless of whether the parties to the contract were aware of the impossibility of the event at the time the contract was made.

EXAMPLE: If two straight lines are to enclose an area, A and B agree to pay each other a sum of Rs. 1000.00. The deal is null and invalid.

Case law related to contingent contracts:

One notable case related to contingent contracts is Fateh Chand v. Balkishan Das (1963), where the plaintiff entered into a contract to sell goods to the defendant, with the delivery of the goods contingent upon the arrival of a ship. The ship was delayed, and the defendant refused to accept the goods. The court held that the contract was contingent upon the arrival of the ship, and since the ship had not arrived, the plaintiff could not perform the contract. Therefore, the contract was void.

A case where contingent contract was the main issue is Ramlal v. Rewa Coalfields Ltd. In this case, the plaintiff entered into a contract with the defendants to transport coal. The contract was contingent on the defendant’s receipt of an order for the coal from a third party. The plaintiff sued the defendants for breach of contract when they failed to provide the coal for transportation. The court held that the contract was a contingent contract, and as the third party had not placed the order, the defendants were not liable for breach of contract.

Conclusion

In conclusion, a contingent contract is a contract that is dependent on the occurrence of an uncertain future event. If the event becomes impossible, the contract becomes void. However, if the event becomes impossible due to the fault of a party to the contract, that party is liable for any damages resulting from such failure.

A contingent contract is a contract that is dependent on the occurrence or non-occurrence of a particular event, and the performance of the contract is not required until that event occurs or does not occur.

Anticipatory Breach of Contract

IOE_Nitin — Sat, 25 Feb 2023 13:16:14 +0000

Anticipatory breach of contract with the suitable act, case law, example according to Indian contract act 1872

Introduction:

Anticipatory breach of contract refers to a situation where one party to a contract makes it clear to the other party that they do not intend to perform their obligations under the contract. This is also known as anticipatory repudiation. Under the Indian Contract Act, 1872, an anticipatory breach of contract gives the innocent party the right to terminate the contract immediately and claim damages.

Section 39 of the Indian Contract Act, 1872, deals with the breach of contract, and it states that when a party to a contract has refused to perform or disabled himself from performing his promise in its entirety, the promisee may put an end to the contract, unless he has signified, by words or conduct, his acquiescence in its continuance. In the case of anticipatory breach of contract, the promisor makes it clear to the promisee that they will not perform their obligations under the contract, even before the time for performance has arrived.

For example, if A contracts with B to deliver goods on a certain date, and before the due date, A informs B that they will not be able to deliver the goods, this constitutes an anticipatory breach of contract. B has the right to terminate the contract immediately and claim damages.

Suppose that X agrees to sell his car to Y on a specific date, and Y agrees to purchase it at the agreed price. However, before the date of delivery arrives, X sells the car to Z. This action constitutes an anticipatory breach of contract as X has acted in breach of his agreement with Y before the date of delivery.

REMEDIES FOR ANTICIPATORY CONTRACT BREACH

The following options are open for anticipatory contract breach:

The promisee has the right to sue for breach of contract if they believe there has been a real breach.
The promisee must hold off on filing the lawsuit until after the real date of performance.
Specific performance and injunction: In some cases, a party to a contract may be protected by the alternative relief of specific performance of the contract rather than pursuing damages for a breach of the contract.
Damages: The most frequent remedy open to the injured party is compensation for damages. As a result, the party who was harmed is liable for paying damages to the wounded party. The relevant clauses are incorporated into Sections 73 to 75. It was decided in the Hadley v. Baxendale case from 1854 that the plaintiffs had not informed the defendants of the special conditions. Therefore, the claimants were not qualified to receive the loss compensation. In the 1949 case of Victoria Loundry Ltd. v. Newman Industries Ltd., it was determined that the respondent knew the truth. To determine the damages that will be paid in this case, the case was submitted to the official Referee.
Quantum Meruit: This remedy entitles the injured party to compensation for any portion of the contract obligations that have already been fulfilled before the breach happened.

The party who is not in default may assert a claim for quantum meruit since it can only be made after the initial contract is discharged.

Case Law:

One notable case related to anticipatory breach of contract is K. R. Bala Subramaniam v. K. S. Rangachari (1968). In this case, the plaintiff had entered into a contract with the defendant for the sale of land. The defendant had paid a part of the purchase price, and the plaintiff had executed a sale deed in favour of the defendant. However, before the final payment was made, the plaintiff informed the defendant that they had sold the land to a third party. The defendant sued the plaintiff for breach of contract. The court held that the plaintiff’s communication amounted to an anticipatory breach of contract, and the defendant was entitled to terminate the contract and claim damages.

One notable case related to the anticipatory breach of contract is Satyabrata Ghose v. Mugneeram Bangur & Co. (1954). In this case, the plaintiff, Satyabrata Ghose, entered into a contract with the defendant, Mugneeram Bangur & Co., for the supply of jute. The contract provided for a shipment of jute from Calcutta to London. Due to the outbreak of World War II, the shipment was delayed, and the plaintiff terminated the contract. The defendant sued the plaintiff for breach of contract. The court held that the contract had been frustrated, and it was not possible to perform it due to the outbreak of the war. Therefore, the plaintiff was not liable for breach of contract.

Another case is Kedar Nath v. Gorie Mohammad (1883) where the defendant agreed to purchase certain goods from the plaintiff on credit. The plaintiff sent the goods to the defendant, but before the defendant could pay for them, he became insolvent. The plaintiff sued the defendant for the price of the goods, but the court held that the defendant’s insolvency was a repudiation of the contract, and the plaintiff was entitled to treat the contract as discharged

Conclusion:

In conclusion, an anticipatory breach of contract occurs when one party to a contract makes it clear to the other party that they do not intend to perform their obligations under the contract. The innocent party has the right to terminate the contract immediately and claim damages.

An anticipatory breach of contract occurs when one party to a contract indicates, either by words or actions, that they will not fulfill their obligations under the contract. The other party to the contract can treat this as a repudiation of the contract and can bring an action for damages. The Indian Contract Act, 1872, provides for remedies in case of anticipatory breach of contract, including the right of the aggrieved party to sue for damages.

Explain the Privity of Contract with exception with the suitable act, case law, example according to Indian contract act 1872

IOE_Nitin — Fri, 24 Feb 2023 18:12:51 +0000

Explain Privity of contract with exception with the suitable act, case law, example according to Indian contract act 1872

Introduction:

Privity of contract refers to the principle that only the parties to a contract have rights and obligations under the contract. In other words, only those who are parties to a contract can sue or be sued under the contract. The doctrine of privity of contract is a fundamental principle of contract law, and it is recognized in various legal systems including India.

Essentials of Privity of Contract:

The essentials of privity of contract can be summarized as follows:

Only parties to a contract have rights and obligations under it.
A third party cannot enforce the contract or claim any rights under it.
A third party cannot be held liable for any breach of contract by the parties to the contract.

Exceptions to the Privity of Contract:

Although privity of contract is a general rule, there are certain exceptions to it. The Indian Contract Act recognizes the following exceptions to the principle of privity of contract:

Contracts for the benefit of third parties: A contract may be entered into for the benefit of a third party, in which case the third party may have the right to enforce the contract.
For example, A contracts with B to deliver goods to C. In this case, C may enforce the contract against A and B.

Agency: Where an agent enters into a contract on behalf of his principal, the principal can sue and be sued under the contract. For example, if A authorizes B to sell goods on his behalf, and B enters into a contract with C to sell the goods, A can sue C for breach of contract.

Trusts: In a trust, the trustee holds the property for the benefit of the beneficiary. The beneficiary may have the right to enforce the terms of the trust, which may include a contract.
Example: Ravi was an illegitimate offspring of Arjun’s father. Prior to his passing, he granted Arjun control of his estate on the understanding that Arjun would give Ravi Rs 500,000 and transfer half of the estate into Ravi’s name once Ravi turned 21.

When Ravi reached that age and inquired about why he hadn’t received the money, Arjun denied providing him his share. Ravi brought a claim for compensation. The judge ruled that Ravi was named as the beneficiary of a trust with a specific sum and percentage of the inheritance. As a result, even though he was not a party to the contract between Arjun and his father, Ravi had the right to suit based on it.

Assignment of rights: A party to a contract may assign his rights under the contract to a third party. In this case, the third party may have the right to enforce the contract against the other party. For example, if A owes money to B, and B assigns his right to receive the money to C, C may enforce the contract against A.

Legal representatives: Where a party to a contract dies, his legal representatives may be bound by the terms of the contract, and may have the right to enforce it.

Acknowledgment of liability: Where a person acknowledges liability for a debt, he may be held liable even if he was not a party to the original contract. For example, if A owes money to B, and C acknowledges that he will pay the debt on A’s behalf, C may be held liable for the debt.
Example : John receives Rs. 1,000 from Peter to compensate Arjun. John confirms receiving the money that will be given to Arjun. He does not, however, compensate him. Arjun has the option of suing John to reclaim the money.

Marriage Settlement: In a marriage settlement, the parties to the contract agree to make provisions for the financial security of the wife. If the husband breaches the terms of the contract, the wife can enforce the terms of the contract against him.
Example : Peter vowed to marry Nancy or pay Rs. 50,000 in damages, according to Nancy’s father. He eventually wed another person, breaking the agreement. Nancy brought a lawsuit against Peter, which the court dismissed because the agreement was a family one with Nancy as the recipient.

Covenants Running with the Land: A covenant running with the land is a promise made between two parties with regard to a piece of land. If the land is sold, the promise made between the two parties remains in force, and the new owner of the land is bound by the terms of the promise.
Example: Peter sold John a piece of property he held with a promise that a specific area would be kept as a public park. Following the terms of the agreement, John ultimately sold the land to Arjun. Even though Arjun was informed of the covenant, he still chose to live there. When Peter learned about it, he accuses Arjun in court. Despite Arjun’s denial of responsibility because he was not a signatory to the contract, the Court found that he had broken the covenant.

Statutory Exceptions: There are certain statutes that provide for third-party enforcement of contracts. For example, the Contracts (Rights of Third Parties) Act, 1999 allows a third party to enforce the terms of a contract if the contract expressly provides for this.
Case laws related to Privity of Contract:

Tweddle v. Atkinson (1861):

In this case, the plaintiff’s father, the groom, and the bride’s father entered into a contract to pay the plaintiff a sum of money on the marriage of the plaintiff and the bride. After the marriage, the defendants refused to pay the plaintiff. The court held that the plaintiff was not a party to the contract, and therefore had no right to sue the defendants.

Shankarlal Narayandas v. Chimandas (1961):

In this case, the plaintiff entered into a contract with the defendants for the sale of goods. The contract provided that the goods would be shipped by the plaintiff to a third party. The third party paid the defendants for the goods, but the plaintiff did not receive payment. The court held that the third party was a beneficiary under the contract, and had the right to enforce it against the defendants.

Dunlop Pneumatic Tyre Co. Ltd. v. Selfridge & Co. Ltd. (1915):

In this case, the plaintiff, a tire manufacturer, entered into a contract with a retailer to sell its tires at a discounted price, with the condition that the retailer would not sell the tires below a certain price. The retailer then sold the tires to the defendant, who resold them at a lower price. The plaintiff sued the defendant for breach of contract, but the court held that the plaintiff could not sue the defendant as there was no privity of contract between them.

Conclusion:

In conclusion, the doctrine of privity of contract states that only the parties to a contract can enforce its terms. However, there are certain exceptions to this rule, which allow third parties to enforce the terms of a contract. It is important for parties to a contract to be aware of these exceptions, as they can have a significant impact on their rights and obligations under the contract.

Quasi-Contract with the suitable act, case law, example according to Indian contract act 1872

IOE_Nitin — Fri, 24 Feb 2023 16:21:46 +0000

Quasi contract with the suitable act, case law, example according to Indian contract act 1872

Introduction:

Quasi contract, also known as implied-in-law contract, is a type of contract which is not created by the mutual consent of the parties. Rather, it is imposed by law as a means to prevent unjust enrichment or unjust detriment to any party involved in a transaction. A quasi contract arises when one person has received a benefit from another person, and it would be unjust for the person who received the benefit to keep it without compensating the other person. In such cases, the law steps in and creates a quasi-contractual relationship between the parties.

The fundamentals of a quasi-contract: Lord Mansfied is regarded as the originator of this agreement. He claims that “natural justice mandates” that no one should obtain an unfair profit at the expense of an equally unfair loss.

This ruling was made in the following case: MOSES v. MACFERLAN: Such action is justified by money that was paid in error, money that was paid for something that didn’t work out, money that was obtained through coercion, extortion, or oppression, or money that was paid with improper understanding of the circumstances. Country to the legislation created for the protection of people in that situation. It is required to return the money by the laws of natural justice and equitable.

QUASI-CONTRACT QUALIFICATIONS:

These agreements are imposed by law and never made by the persons involved.
One side must give the other party money.
This agreement grants one side the right. The other party is not opposed to the globe, once more.
Only monetary compensation, not liquidated damages, may be claimed. Section 68 to 72 of the Indian Contract Act, 1872, deals with quasi-contracts.

According to Section 68, a person who has received a benefit from another person without any intention to do so is bound to compensate the other person for the benefit received.
The following are the components of Section 68:

Provision of necessities to someone incapable of entering into contracts
These items must be for the essential needs.
The items must be appropriate for minors.
The supplier has the option of recouping the cost using the minor’s property. Personal culpability is not involved.

It was decided in the 1844 case of Chapple v. Cooper that items considered needs are those without which it is impossible to survive. To a child or insane, necessities like food, clothing, shelter, and medicine are essential. However, it must not be excessive.
Similarly, Section 69 deals with the reimbursement of a person who has paid for another person’s obligations.

Example: “B” is the owner of land in Bengal under a lease from zamidar “A.” Given that A is legally required to pay the government its revenue, the sale’s implications include the termination of B’s lease. B pays the government the amount due from A in order to stop the sale and subsequent cancellation of his own lease. A is required to produce the goods for B at the price paid.

Section 70 provides for compensation for a person who has done something on another person’s behalf,
The following conditions must be met in order for section 70 to apply:

One person legally works for other.
The behaviour is voluntary.
He reaps some rewards for his efforts.
The recipient of the act benefits from it.
The act was not performed gratuitously.

Example: A tradesman named “A” accidentally drops off goods at B’s home. B treats the items as if they were his. He must compensate “A” for them.

and Section 71 deals with compensation for the person who has conferred a benefit on a third person means responsibility of finder of goods:

In the following situations, the finder may sell the items:

When the item is in jeopardy of perish.
When the owner cannot be located with reasonable diligence.
When the owner is identified but declines to pay the finder’s legal fees;
When the finder’s legal fees, in relation to the thing located, equal 2/3 of the item’s value.

Finally, Section 72 provides for compensation for a person who has mistakenly believed that he was entitled to receive a benefit from another person.

Example: B hands over some gold rings, and A, brandishing a gun, takes them. Here, “A” is required by a fictitious contract to provide “B” the gold rings. The definitions of coercion and mistake in section 15 and 20 respectively are identical. There are clauses pertaining to quasi-contracts.

An example of a quasi-contract would be a situation where a person accidentally pays the wrong person for a service, and the person who received the payment did not provide the service. In such a case, the law would create a quasi-contractual relationship between the parties, and the person who received the payment would be obligated to compensate the person who paid for the service.

One of the most significant cases related to quasi-contracts in India is the case of Brij Narain v. Mangla Prasad (AIR 1924 All 1). In this case, the plaintiff had mortgaged a property to the defendant and had defaulted on the mortgage payments. The defendant had taken possession of the property but had failed to account for the rent collected from the property. The court held that the defendant was liable to account for the rent collected and that a quasi-contractual relationship existed between the parties.

Another important case related to quasi-contracts is the case of State of Kerala v. Gwalior Rayon Silk Manufacturing Co. Ltd. (AIR 1972 SC 1636). In this case, the plaintiff had supplied goods to the defendant but had not received payment for the goods. The defendant had claimed that there was no valid contract between the parties. The court held that even though there was no valid contract between the parties, a quasi-contractual relationship existed between them, and the plaintiff was entitled to compensation for the goods supplied.

Conclusion:

In conclusion, quasi-contracts are a means to prevent unjust enrichment or unjust detriment to any party involved in a transaction. These contracts are created by law and impose obligations on the parties involved. The Indian Contract Act, 1872, provides for the various types of quasi-contracts and the obligations that arise from them. The cases of Brij Narain v. Mangla Prasad and State of Kerala v. Gwalior Rayon Silk Manufacturing Co. Ltd. illustrate the application of quasi-contracts in India.

Examples of quasi-contracts include:

Money paid by mistake: If a person pays money to another by mistake, the person who receives the money is obligated to return it to the rightful owner under a quasi-contract.
Work done under compulsion: If a person is forced to perform work under compulsion, they may be entitled to compensation under a quasi-contract.
Payment for goods or services provided without a contract: If a person provides goods or services to another without a contract, they may be entitled to payment for the value of the goods or services under a quasi-contract.
One notable case related to quasi-contracts is Kedar Nath v. Gorie Mohammad (1883), where the plaintiff had paid the defendant for the shipment of goods that were not delivered. The defendant argued that there was no contract between them for the delivery of the goods. The court held that the defendant had received the money as a result of unjust enrichment, and therefore was obligated to return it under a quasi-contract.
Another case is Ram Coomar Coondoo v. Chunder Kant Mookerjee (1876), where the defendant, a Hindu widow, had leased out property that she did not own to the plaintiff. The defendant argued that the lease was void because she did not have the authority to lease the property. The court held that the plaintiff was entitled to compensation under a quasi-contract for the value of the leasehold improvements he had made to the property.

CONSIDERATION AND IT’S ESSENTIAL

IOE_Nitin — Tue, 14 Feb 2023 09:02:03 +0000

Explain Consideration and it's essential with the suitable act, case law, example according to Indian contract act 1872

Introduction

Consideration is an essential element in a contract, which refers to something of value exchanged between the parties to the contract. In Latin term “Quid pro quo” means Something in Return. Consideration is a crucial aspect of a contract because it is what distinguishes a contract from a mere promise. The Indian Contract Act, 1872 defines consideration as “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 abstain from doing something, such act or abstinence or promise is called a consideration for the promise.”

Essentials of Consideration:

It must move at the desire of the promisor: Consideration must move from the promisee or any other person at the request of the promisor.
It must be something of value: Consideration must be something of value in the eyes of the law.
It must be lawful: The consideration must be lawful, otherwise, it would not be considered valid in the eyes of the law.
It must be real: Consideration must be real, i.e., it must have some value in the eyes of the law.
It must not be illusory: The consideration must not be illusory or vague, otherwise, it would not be considered valid.

Example of Consideration:

Suppose A offers to sell his car to B for Rs. 2,00,000. B accepts the offer and pays the money to A. Here, the consideration for A’s promise to sell the car is the payment of Rs. 2,00,000 by B. Similarly, if A promises to repair B’s car in exchange for Rs. 10,000, the consideration for A’s promise to repair the car is the payment of Rs. 10,000 by B.

Acts related to consideration:

Indian Contract Act, 1872: This act defines consideration as an essential element of a contract.
Transfer of Property Act, 1882: This act lays down the rules for the transfer of property from one person to another.
Sale of Goods Act, 1930: This act governs the sale of goods and lays down the rules for the transfer of property in goods from the seller to the buyer.

Case law related to consideration:

Chinnaya vs Ramayya: In this case, the plaintiff, Chinnaya, had given a promise to pay a sum of money to the defendant, Ramayya. However, the consideration for this promise was not established. The court held that a promise without consideration is not enforceable under the Indian Contract Act.

Thomas vs Thomas: In this case, the plaintiff, Mrs. Thomas, had promised to pay rent to her late husband’s brother, Mr. Thomas. The court held that the consideration for Mrs. Thomas’s promise was the brother’s agreement to transfer the possession of the property to her. Therefore, the promise was enforceable.

The Allahabad High Court ruled in Nutan Kumar v. Additional District Judge, Banda (AIR 1994 Allahabad) that any arrangement between a landowner and tenant that is at odds with the provisions of the Rent Control Act is null and void. These agreements cannot be upheld in court.

Masum Ali vs. Abdul Aziz (1914)

Facts: In order to execute a commitment that the promisor had made to contribute Rs. 500 towards the reconstruction of a mosque, the secretary of a mosque committee filed a lawsuit.

According to the judgement, “The promise was not enforceable because there was no consideration in the sense of benefit” because “the person who promised gained nothing in return for the promise made” and “the secretary of the committee to whom the promise was made” suffered no harm (liability) because nothing had been done to carry out the repairs. Therefore, the lawsuit was dropped.

Conclusion

In conclusion, consideration is an essential element in a contract, and it must be something of value that is exchanged between the parties to the contract. The consideration must be lawful, real, and not illusory or vague. The Indian Contract Act, 1872 defines consideration as an essential element

Void agreement with exception

IOE_Nitin — Tue, 14 Feb 2023 06:59:03 +0000

Explain Void agreement with exception with the suitable act, case law, example according to Indian contract act 1872

Introduction

In the Indian Contract Act, 1872, a void agreement is one that is not enforceable by law, meaning it has no legal effect, and no rights or obligations can be derived from it. The Act defines a void agreement as an agreement that is not legally binding and has no legal consequences.

Essentials of a Void Agreement:

Not enforceable by law.
Has no legal consequences.
Cannot create legal rights or obligations.

an explanation of void agreements under the Indian Contract Act, 1872, along with the relevant sections and examples.

Section 2(g) of the Indian Contract Act, 1872 defines a void agreement as “an agreement not enforceable by law.” In other words, a void agreement is one that is invalid from the outset and has no legal effect.

There are several circumstances under which an agreement may be considered void under the Indian Contract Act, 1872. These are:

Agreement by a minor (Section 11): A contract entered into by a person who is not of the age of majority (which is 18 years in India) is void ab initio, i.e., from the beginning. This is because minors are considered to be lacking in the legal capacity to contract.

For example, if a 16-year-old enters into a contract to buy a car, the agreement will be void because the minor does not have the legal capacity to enter into a contract.

Agreement made under coercion, undue influence or fraud (Sections 14, 16 and 17): An agreement that is entered into under duress or coercion, undue influence, or fraud is considered to be voidable at the option of the aggrieved party. If the aggrieved party chooses to rescind the contract, it becomes void from the beginning.

Section 14 defines coercion as the act of committing or threatening to commit any act that is forbidden by law or that is unlawful. Undue influence, as defined in Section 16, refers to the exercise of undue influence by one party over the other. Section 17 defines fraud as the act of making a false representation or concealing a material fact with the intention to deceive the other party.

For example, if a person is forced to sign a contract under threat of physical harm, the agreement is voidable at the option of the aggrieved party. Similarly, if a person is induced to enter into a contract based on a false representation, the agreement is voidable at the option of the aggrieved party.

Agreement made without consideration (Section 25): A contract that is made without consideration is void. Consideration refers to something of value that is given or promised by one party in exchange for something of value given or promised by the other party.

For example, if a person promises to give a gift to another person, but the promise is not supported by any consideration, the agreement is void.

Agreement in restraint of marriage (Section 26): An agreement that puts a restraint on a person’s right to marry is void. This is because such an agreement is considered to be against public policy.

For example, if a person enters into a contract that prohibits them from getting married, the agreement is void.

Agreement in restraint of trade (Section 27): An agreement that puts a restraint on a person’s trade, profession or business is void. This is because such an agreement is considered to be against public policy.

For example, if a person enters into a contract that prohibits them from practicing their profession in a particular area, the agreement is void.

Restraint in Legal Proceeding (section 28) : an agreement is void to the extent that it forbids a party from defending his contractual rights through customary legal channels or if it restricts the amount of time he has to do so. It protects three different kinds of contracts: (a) those that stipulate that an arbitration award must come before a lawsuit can be filed; (b) agreements to refer ongoing legal disputes to arbitration; and (c) guarantees made by banks and other financial institutions that include the clauses listed in the exception to the rule.

Agreement with uncertain terms (Section 29): A contract that has uncertain terms is void. In other words, if the terms of the contract are not clear and cannot be ascertained, the agreement is void.

For example, if a person enters into a contract to provide a service, but the terms of the service are not clearly defined, the agreement is void.

Wagering agreement (Section 30): A wagering agreement is one where the parties involved make a bet on the outcome of an uncertain event. Such agreements are considered to be void.

For example, if a person enters into a contract to bet on the outcome of a particular sports match, it is considered a wagering agreement.

However, there are a few exceptions to this rule. First, if the wagering agreement is made in the course of business and is not prohibited by any law, it is considered to be a valid contract. For example, insurance contracts, where the insurer takes a risk on the outcome of an uncertain event, are not considered to be wagering agreements.

Another exception is the skill-based competition, where the outcome of the event depends on the skill or ability of the parties involved. For example, a contract to participate in a chess tournament or a car race is not considered to be a wagering agreement because the outcome depends on the skill of the parties involved.

The Indian Contract Act, 1872, specifically defines wagering agreements as void. Section 30 of the Act states that “Agreements by way of wager are void; and no suit shall be brought for recovering anything alleged to be won on any wager, or entrusted to any person to abide by the result of any game or other uncertain event on which any wager is made.”

One of the landmark cases related to wagering agreements is R.M.D. Chamarbaugwala v. Union of India (1957). In this case, the petitioner organized a game of “Rummy” for amusement and did not charge any participation fee. The game required a certain amount of skill and was not purely based on chance. However, the government declared it to be a wagering game and prohibited its organization. The court held that the game was not a wagering game and did not fall under the definition of a gambling act. The court also stated that a game of skill could not be considered as gambling or wagering even if it involved the distribution of prizes.

In conclusion, a wagering agreement is considered void under the Indian Contract Act, except in certain situations like insurance contracts and skill-based competitions. It is important to note that betting on a game or contest is illegal under the Public Gambling Act, 1867, and any agreement made for the same purpose is also considered void.

Case laws:

Mohiri Bibee v. Dharmodas Ghose (1903): In this case, the plaintiff, Mohiri Bibee, had given a bond to the defendant, Dharmodas Ghose, as security for a loan. The bond stated that Mohiri Bibee would pay Dharmodas Ghose a sum of money with interest, but the bond was not stamped as required by the Indian Stamp Act. The court held that the bond was void as it was not properly stamped.

Abdullah v. Masum (1979): In this case, the plaintiff, Abdullah, entered into an agreement with the defendant, Masum, to pay him money in exchange for obtaining a license to operate a certain business. The agreement was found to be void as it was against public policy and therefore not enforceable by law.

Natarajan v. B. Chidambaram (2004): In this case, the plaintiff, N. Natarajan, entered into a contract with the defendant, B. Chidambaram, to purchase a property. The contract was found to be void as the property was not owned by the defendant and therefore he could not transfer the property to the plaintiff.

Jayabharathi v. S. Subramanyam (1999): In this case, the plaintiff, Jayabharathi, entered into an agreement with the defendant, S. Subramanyam, to sell him a property. The agreement was found to be void as the plaintiff did not have the legal capacity to enter into the agreement as she was a minor.

Kedar Nath v. Gorie Mohamad (1885): In this case, the plaintiff, Kedar Nath, entered into an agreement with the defendant, Gorie Mohamad, to transfer a property to him. The agreement was found to be void as it was not registered as required by the Indian Registration Act.

Conclusion

In conclusion, a void agreement is one that is not enforceable by law and has no legal consequences. An agreement may be void if it is not properly stamped, is against public policy, involves fraud, misrepresentation, or mistake, or is not registered as required by law. It is important to ensure that agreements are properly executed and comply with legal requirements to avoid entering into void agreements.

COMMUNICATION AND REVOCATION OF OFFER

IOE_Nitin — Tue, 14 Feb 2023 06:29:23 +0000

Explain communication and revocation of offer with the suitable act, case law, example according to Indian contract act 1872

Introduction

Communication and revocation of offer are essential aspects of contract law in India. The Indian Contract Act, 1872, governs the communication and revocation of offers, which are critical in determining the validity of a contract. This article will explore the concept of communication and revocation of offer in detail, including its essential features, relevant case law, and examples.

Communication of Offer:

Communication of offer is a critical aspect of contract law. Section 3 of the Indian Contract Act, 1872, defines a proposal (offer) as “when one person signifies to another 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.” The offeror must communicate the offer to the offeree in order for it to be valid.

The communication of an offer is valid when the offeror expresses his intention to enter into a contract with the offeree. The offeror must indicate the terms and conditions of the offer, including the subject matter, price, time, and place of performance. It is also essential that the offeror communicates the offer to the offeree directly or indirectly. If the offer is communicated indirectly, it must be communicated to the offeree personally, or it must come to his knowledge through a reliable source.

In the case of Lalman Shukla vs. Gauri Dutt, (1913) 11 ALJ 489, the court held that if the offeror communicates the offer to a third party and not to the offeree, it cannot be considered a valid offer. In the case, the plaintiff asked the defendant’s servant to find the defendant and inform him that his uncle was looking for him. The defendant’s uncle had died, and the plaintiff wanted to communicate this news to the defendant. The plaintiff later offered a reward for anyone who could find the defendant, and the defendant’s servant claimed the reward. The court held that the offer was not communicated to the defendant personally or indirectly, and therefore it was not a valid offer.

Revocation of Offer:

Revocation of offer refers to the withdrawal of an offer by the offeror. An offer can be revoked by the offeror at any time before acceptance, and it can be revoked by communicating the revocation to the offeree. The revocation must be communicated to the offeree before he accepts the offer. If the offer is revoked after the acceptance, it is not valid, and the contract becomes enforceable.

The Indian Contract Act, 1872, provides specific rules regarding the revocation of offer. According to Section 5 of the Act, an offer can be revoked at any time before acceptance. The revocation of the offer must be communicated to the offeree, and it can be communicated either orally or in writing. The revocation is effective when it is received by the offeree.

In the case of Byrne & Co. vs. Van Tienhoven, (1880) 5 CPD 344, the court held that revocation of an offer must be communicated to the offeree to be effective. In the case, the defendant offered to sell a quantity of tin plates to the plaintiff by telegram, and the plaintiff replied by telegram that he was interested in buying the plates. Before the plaintiff could accept the offer, the defendant revoked it by telegram. The plaintiff sued the defendant for breach of contract, and the court held that the revocation of the offer was not effective as it was not communicated to the plaintiff before he accepted the offer.

Modes of Revocation of Offer: Sec. 6

Offer revocation or lapses: Section 6 of the Indian Contract Act of 1872 discusses several methods of offer revocation. It states that an offer is withdrawn, expires, or is terminated in the following situations.

1) Through the exchange of written or verbal notice: An offeror may renounce his offer at any moment prior to acceptance by providing a straightforward notice of revocation.

HARRIS (VS) NICKERSON, for instance (1873).

Fact: An auctioneer announced in a newspaper that office furniture would be sold. To attend that auction, a broker travelled a long way, but all of the furniture was removed. The auctioneer was then sued by the broker for his lost time and expenditures.

Conclusion: A statement of intent to do something did not result in a legally binding agreement between the parties involved. to prevent the broker from making a profit.

2) By passing of a reasonable period of time: If an offer is not accepted within the allotted or reasonable period of time, it will be revoked. However, if no time limit is specified, it expires when a fair amount of time has passed.

Example: Monteflore vs. Ramsgate Victoria Hotel Company (1886)

Facts: On June 8th, “M” made an offer to purchase stock in “R” Company. On November 23rd, he got a letter of admission. He objected to taking stock.

Conclusion: “M” had the right to reject his offer because a fair amount of time had passed during which it could have been accepted.

3) By failure to satisfy some requirements: When the offeror has specified some conditions that must be met and the offeree/acceptor does not satisfy the conditions necessary for acceptance. Then the offer will be withdrawn.

Conclusion: “M” had the right to reject his offer because a fair amount of time had passed during which it could have been accepted.

4) By the offeror’s demise or insanity: The offer is not automatically withdrawn upon the offeror’s demise. If the offeree learns of the offeror’s demise or insanity before to accepting it, the offer will be cancelled. Otherwise, the acceptance is legitimate if the recipient does not know that the offeror is deceased or insane.

5) When making a counter offer, the offeree or acceptor proposes to condition acceptance of the offer on changes and additions to the original offer’s terms. Consequently, a counter offer is the same as rejecting the initial offer.

Example: Hyde Vs. Wrench (1840)

Facts: “W” proposed to “H” that he pay L 1000 for a farm (pounds). ‘H’ made an offer of L 950 (pounds), but ‘W’ declined. Then “H” made an offer to buy the farm for L 1000. (pounds).

Conclusion: Since “H” rejected the initial offer by giving L 950 (ponds), there was no contract. because a proposal is rejected when a counter offer is made.

6) By change in the law: An offer expires if the law is altered in a way that renders the contract envisioned by the offer invalid or unenforceable.

7) An offer is not accepted in accordance with the prescribed (or usual) way: In this case, the offeror must notify the offeree in a timely manner that the offer is not accepted in accordance with the prescribed/normal mode. The offer is assumed to have been accepted if the offeror remains silent.

8) The offeree or acceptor’s demise (or insanity).

9) Through the obliteration of the subject.

Essentials of Communication and Revocation of Offer:

To summarize, the following are the essentials of communication and revocation of offer under the Indian Contract Act, 1872:

Communication of offer must be clear, unambiguous, and complete.
The offer must be made with the intention to create a legal relationship.
The offer must be communicated to the offeree.
The offeree must have the knowledge of the offer.
The offeree must have the capacity to accept the offer.
The acceptance of the offer must be communicated to the offeror.
The offer can be revoked by the offeror at any time before the acceptance.
The revocation of the offer must be communicated to the offeree.
The offer cannot be revoked after the acceptance.
The acceptance must be communicated before the offer is revoked.
The communication of the revocation must be received by the offeree before the communication of the acceptance.

Case Laws:

Lalman Shukla v. Gauri Dutt (1913): This case is an illustration of the principle that an offer can be revoked only if the revocation is communicated to the offeree. In this case, Lalman Shukla was sent to look for his uncle Ganga Ram who had left the house for a pilgrimage. Before he could find him, Gauri Dutt, the defendant, sent a telegram to Lalman offering a reward for the return of Ganga Ram. Lalman, who had no knowledge of the offer, returned with his uncle after the offer had already been revoked. The court held that since the offer was not communicated to Lalman, he could not have accepted it, and hence, there was no contract.

Byrne v. Van Tienhoven (1880): In this case, the defendant sent a telegram to the plaintiff offering to sell goods. The plaintiff sent an acceptance the same day. However, before the acceptance reached the defendant, he sent a revocation of the offer by a telegram. The plaintiff later received the revocation but claimed that the contract had already been concluded. The court held that since the acceptance was sent before the revocation was received, the contract was concluded, and the defendant was liable for breach of contract.

Shuey v. US (1875): In this case, the defendant, Shuey, offered to sell a horse to the government for a certain price. The offer was made through an agent, who was authorized to receive the acceptance on behalf of Shuey. The government sent an acceptance to the agent, but before the acceptance was communicated to Shuey, he revoked the offer. The court held that since the acceptance had been communicated to the authorized agent, there was a binding contract between the parties, and the offer could not be revoked.

Conclusion:

Communication and revocation of offer are essential components of a valid contract. The offeror must communicate the offer clearly, and the offeree must have the knowledge of the offer. The offeror can revoke the offer at any time before acceptance, but the revocation must be communicated to the offeree. If the acceptance is communicated before the revocation, a binding contract is formed. The communication of offer and revocation is crucial in determining the validity of a contract, and failure to follow the rules can result in a breach of contract.

Explain Proposal and it’s essential with the suitable act, case law, example according to Indian contract act 1872

IOE_Nitin — Tue, 14 Feb 2023 05:54:03 +0000

Explain Proposal and it's essential with the suitable act, case law, example according to Indian contract act 1872

In the Indian Contract Act, 1872, the term 'proposal' is used to describe an offer made by one party to another, which, when accepted, becomes a Promise. A proposal is a crucial aspect of any contract, and its terms are required to be clear, unambiguous, and specific. In this answer, we will explore the essential components of a proposal, as well as provide a suitable example and relevant case law in Indian contract law.

Essential Components of a Proposal:

Under Section 2(a) of the Indian Contract Act, a proposal is defined as “when one person signifies to another 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.” A proposal must be made with a clear intention to create legal relations, and it must contain the following essential components:

Offer: The proposal must contain a definite and specific offer. It must specify the terms and conditions of the offer and must be communicated in a clear and unambiguous manner.

Intention to create legal relations: The proposal must be made with the intention to create legal relations. The parties must be aware that their agreement will have legal consequences.

Communication: The proposal must be communicated to the other party. Until the proposal is communicated, it cannot be accepted.

Acceptance: The proposal must be accepted by the other party. Acceptance must be unconditional and in accordance with the terms and conditions of the proposal.

Consideration: The proposal must contain consideration. Consideration is something of value given by one party to another in exchange for the other party’s promise to do or abstain from doing something.

Example:

A offers to sell his car to B for Rs. 2 lakhs. A clearly states the terms and conditions of the offer, including the condition that the payment must be made in cash. B, upon receiving the offer, agrees to purchase the car for the price offered and agrees to pay in cash. The terms of the proposal have been communicated clearly, and B has accepted the offer. There is an intention to create a legal relationship, and consideration is present in the form of the payment of Rs. 2 lakhs.

Case Law:

In Lalman Shukla v. Gauri Dutt (1913), the essential components of a proposal were discussed. That is the proposal should be communicated. In this case, Lalman’s nephew, Madho, went missing, and Lalman offered a reward of Rs. 501 to anyone who could find him. Gauri Dutt, who did not know about the reward, found Madho and brought him back to Lalman. However, Lalman refused to pay the reward to Gauri Dutt, claiming that he had not communicated the reward offer to him. The court held that in order for a proposal to be valid, it must be communicated to the other party. Since Lalman did not communicate the reward offer to Gauri Dutt, he was not entitled to the reward.

In conclusion, a proposal is a crucial component of any contract. The essential components of a proposal include an offer, an intention to create legal relations, communication, acceptance, and consideration. It is important that all these elements are present for the proposal to be valid. The case law discussed above emphasizes the importance of communication in a proposal, which is necessary for the formation of a valid contract.

FORMAT OF CONTRACT

IOE_Nitin — Sat, 11 Feb 2023 16:25:10 +0000

FORMAT OF CONTRACT

A contract is an agreement between two or more parties that creates a legal obligation. Contracts can be formed in a variety of ways and can take many forms, depending on the parties’ intentions and the subject matter of the agreement. The format of a contract is an important consideration because it can affect how the terms of the agreement are interpreted and enforced. In this essay, we will explore the format of contracts in India, with an example and a suitable case law.

Format of Contract:

In India, the format of a contract depends on the type of contract and the parties involved. For example, a simple contract between two individuals for the sale of a car may be written on a piece of paper and signed by both parties. On the other hand, a complex commercial contract between two companies may be written on multiple pages and may include detailed provisions, such as warranties, indemnities, and dispute resolution clauses.

The essential elements of a contract are an offer, acceptance, consideration, and an intention to create legal relations. These elements may be expressed or implied, depending on the circumstances of the agreement. The terms of the contract must be clear and unambiguous, and the parties must have the capacity to enter into the agreement. A contract may be oral or written, but it is always advisable to have a written agreement to avoid any ambiguity or misunderstanding between the parties.

Offer and Proposal are used concurrently. Offer is used in British law, whereas Proposal is used in Indian law.

The term Offer is also called a Proposal. The first step in the format of a contract is the substance of a proposal. To constitute a contract there must be an offer and acceptance. The person who makes an offer is called” Offeror” and the person who accepts the offer is called “Offeree” or” Acceptor”.

Definition According to sec. 2(a) of Indian contract Act, 1872 defines an offer as “when one person signifies his willingness to another person to do or to abstain from doing anything with a view to obtain the assent of that other to, such act or abstinence, he’s said to make a proposal”.

Section 2(b) defines” promise” as,” when a person to whom the proposal is made, signifies his assent thereto, the proposal is said to be accepted. A proposal, when accepted, becomes a promise;

According to Section 2(c) of the Indian Contract Act, the person making the proposal is called the “promisor”, and the person accepting the proposal is called the “ promisee ”,

Example of Contract:

Let’s take an example of a contract between a software company and a client for the development of a mobile application. The contract may include the following terms:

Offer: The software company offers to develop a mobile application for the client as per the specifications provided by the client.

Acceptance: The client accepts the offer and agrees to pay the software company a fixed amount for the development of the mobile application.

Consideration: The consideration for the contract is the payment made by the client to the software company.

Intention to create legal relations: The parties intend to create a legally binding agreement.

Terms and conditions: The contract may include terms and conditions, such as the timeline for the development of the mobile application, the testing procedures, and the intellectual property rights.

Dispute resolution: The contract may also include a dispute resolution clause that specifies the process for resolving any disputes that may arise between the parties.

For an offer to be valid and enforceable succeeding conditions are to be satisfied

There must be two parties
Every proposal must be communicated
Offer must be distinguished from an invitation to offer
Offer may be expressed (or) implied
Offer may be specific (or) general
Offer must be made with a view to getting the assent
Offer mustn’t be a statement of price
Offer must be able of creating legal relations
Offer must be certain, definite, and not vague

1) There must be two parties

There must be at least two people, a person to make a proposal and the other person to accept it. Legal persons and artificial persons all are included in person.

2) The proposal must be communicated

An offer is effective only when it’s communicated to the person to whom it’s made unless an offer is communicated; there’s no acceptance and no contract.

Example LALMAN SHUKLA (VS) GAURI DATT.( 1913)

Facts ‘G’ sent his servant, ‘L’ to trace his missing nephew. He also announced that anybody would be entitled to a certain reward. ‘L’ traced the boy in ignorance of his advertisement. Thereafter, when he came to know of his reward, he claimed it.

Judgment He wasn’t entitled to the reward. Because the offer has not been communicated to him.

3) Offer must be distinguished from an invitation to offer

A proposer/ offer must be distinguished from an invitation to offer. In the case of an invitation to offer, the person sending out the invitation doesn’t make any offer, but only invites the party to make an offer. Similar invitations for offers aren’t offered in the eyes of the law and don’t become agreement by the acceptance of similar offers.

Illustration; trade of goods price list, railway list, banking list

4) Offer may be expressed (or) implied

An offer may be made either by words (or) by conduct. An offer that’s expressed by words (i.e., spoken or written) is called an express offer, and an offer that’s inferred from the conduct of a person (or) the circumstances of the case is called an ‘implicit offer ’.

5) Offer may be specific (or) general

An offer is said to be specific when it’s made to a definite person, such an offer is accepted only by the person to whom it’s made. On the other hand, general offer is one that’s made to the public at large and may be accepted by anyone who fulfilled the essential conditions.

Example: Carlill (vs.) Carbolic Smoke Ball company (1893).

Facts: A company advertised in several newspapers that a reward of L 100 (pounds) would be given to any person who contracted influenza after using the smoke ball according to the printed directions. Once Mrs. Carlill used the smoke balls according to the directions of the company but contracted influenza.

Judgment she could recover the amount by using the smoke balls she accepted the offer. There’s no need to communicate in a General offer.

6) Offer must be made with a view to obtaining the assent

An offer to do (or) not to do something must be made with a view to carrying the assent of the other party addressed and it shouldn’t be made simply with a view to exposing the intention of making an offer.

7) Offer mustn’t be a statement of price

A mere statement of price isn’t treated as an offer to vend. Thus, an offer mustn’t be a statement of price.

Example: HARVEY (VS) FACEY( 1893)

Facts: Three telegrams were changed between Harvey and Facey.

(a) “Will you vend us your Bumper hall pen? Telegram smallest cash price- answer paid”.( Harvey to Facey).

(b) “smallest price for bumper hall pen L 900( pounds) ”.( Facey to Harvey)

Judgment There was no concluded contract between Harvey and Facey. Because a mere statement of price isn’t considered an offer to vend.

8) Offer must be able of creating legal relations

A social invite, indeed if accepted, doesn’t generate a legal relationship because it isn’t so intended to generate a legal relationship. Thus, an offer must be similar as would affect in a valid contract when it’s accepted.

Example: Balfour vs. Balfour

Facts

Balfour was a civil engineer and worked for the Government as the Director of Irrigation in Ceylon (now Sri Lanka). Mrs. Balfour was living with him. In 1915, they both came back to England. Balfour’s leave. But Mrs. Balfour had developed rheumatoid arthritis. Her doctor advised her to stay in England because the climate in Ceylon would be mischievous to her health. Mr. Balfour’s boat was about to set passage, and he orally promised her£ 30 a month until she came back to Ceylon. They drifted apart, and. Balfour wrote saying it was better that they remain piecemeal. In March 1918, Mrs. Balfour sued him to keep up with the monthly£ 30 payments. In July she got a decree nisi and in December she attained an order for alimony.

At first case,

Judge Charles Sargant held that Mr. Balfour was under an obligation to support his wife.

Judgment

The Court of Appeal unanimously held that there was no enforceable agreement, although the depth of their reason differed.

9) Offer must be specific, definite, and not vague

Still, indefinite, and uncertain, if the terms of the offer are vague.

Suitable Case Law:

One of the most famous cases in Indian contract law is the case of Balfour v Balfour (1919). In this case, a husband promised to pay his wife a monthly allowance while he was working in Ceylon, but the promise was made in the course of a domestic conversation and was not intended to be legally binding. When the husband stopped making the payments, the wife sued him for breach of contract. The court held that there was no intention to create legal relations between the husband and wife and that the promise was a social agreement rather than a legally binding contract. The court stated that “the ordinary presumption is that in domestic agreements, there is no intention to create legal relations, unless the contrary is clearly expressed.”

This case highlights the importance of the intention to create legal relations in a contract. It also shows that not all agreements are legally binding, and the circumstances surrounding the agreement are crucial in determining whether the agreement is a contract or a social agreement.

Conclusion:

In conclusion, the format of a contract in India depends on the type of contract and the parties involved. A contract can be oral or written, but it is always advisable to have a written agreement to avoid any ambiguity or misunderstanding between the parties. The essential elements of a contract are an offer, acceptance, consideration, and an intention to create legal relations. The terms of the contract must be clear and unambiguous, and the parties must have the capacity to enter into the agreement.

A Detail History of Contract and Distinguish From Agreement

IOE_Nitin — Thu, 25 Aug 2022 14:34:40 +0000

A Detail History of Contract and Distinguish From Agreement

HISTORY AND NATURE OF CONTRACT ACT

LAW: A Body of rules of conduct of binding legal force and effect, laid down, recognized, and Implemented by controlling authority.

Controlling authority: Appropriate government means center or state government.

Government: Govt. can be defined as the institution or institutions that retain the essential authority to rule a society. Or A Govt. is a system by which a state or community is managed.

Law is divided into two types:

Substantial Law	Procedure Law
Substantial Law creates rights, duties, and obligations between the parties.	Procedure Law: it Implements the procedure for Substantial law.
Example: Contract, IPC, Hindu law, Muslim law, etc.	Example: Code of Criminal Procedure, Code of civil procedure, Evidence Act, etc

Two different types of law are classified:

1. Codified law: Contract, IPC, Cr. PC, CPC, etc.

2. Non- Codified law: Muslim Law, Hindu law, Jurisprudence Etc.

Now, a Contract is substantive codified law. It is the most important branch of Mercantile or commercial law. This is related to the day-to-day sale of general people.

Father of Contract: Sir William R. Anson

The Indian Contract Act was legislated on 25 April 1872 and came into force on September 1, 1872. It is grounded on the principles of English Common Law.

The Act as passed primarily had 266 Sections, it had an extended scope and

General Principles of Law of Contract – Sections 01 to 75
A contract relating to Sale of Goods – Sections 76 to 123·
Special Contracts- Indemnity, Guarantee, Bailment & Pledge, and Agency – Sections 124 to 238
Contracts relating to Partnership – Sections 239 to 266

At present the Indian Contract Act may be divided into two parts:

· Part 1: deals with the General Principles of Law of Contract Sections 1 to 75

· Part 2: deals with Special kinds of Contracts similar as

1. Contract of Indemnity and Guarantee

2. Contract of Bailment and Pledge

3. Contract of Agency.

Object and function: object of contract law is to regulate the combined sale between the parties. The object & function of the law of contract is to see that, as far as possible, the expectances created by the vows of the parties are fulfilled and liabilities specified by the agreement of the parties are executed.

Ex. Gold or wheat at a fixed price sells.

A brief history in India:

In the Vedic period: Deals are based on Religion. (King)
In Pauranik Era: Vidhya (Vishnupuran)- 4 type
1. Tarkashastra
1. Karmakanda
1. Dandneeti
1. Varta
Before Mugal Emperor: It was organized by Dharmashastra, Manusahimta, etc.
During the Mugal Period: Development of Muslim law…Contract- Aqd means Bandhan
In the British period: In the Royal Charter of 1726 Mayor Courts were established in the presidency city of Calcutta, Madras, and Bombay. It was based on English Common Law predicated on the principles of –Justice, Equity, and Good conscience.
But in 1781 in Calcutta –Established Supreme Court
And in 1797 Bombay and Madras- Established Recorder courts

The Indian Contract Act, 1872:

Charter 1833- Law commission (uniform civil code)
In 1835 – The first law Commission –After some Recommendations-
In 1853 – Second Law Commission
In 1861 –Third Law Commission – Repeal-
Present Draft on the contract of law and report in 1866
In 1867- After some amendments
Eventually in 1872 (Act no. 9) The Indian Contract Act:
Enact: 25 April 1872
Enforce: 1 September 1872
It has 6 chapters and 75 sections.

Description of Contract: According to the Indian Contract Act;

Sec.2(h): An agreement enforceable by law is a contract.

Sir John Salmond: An agreement creating and defining liabilities between the parties.
Anson: A contract is an agreement enforceable by law made between two or more persons by whom rights are required by one or more to act or forbearance on the part of others or others.

Difference Between Agreement And Contract

Contract	Agreement
A contract is an agreement that is enforceable by law.	A promise or several promises that are not contradicting and are accepted by the parties involved in an agreement.
A contract is only legally enforceable.	An agreement must be socially acceptable. It may or may not be enforceable by the law.
A contract has to create some legal obligation.	An agreement doesn’t create any legal obligations.
All contracts are also agreements.	An agreement may or may not be a contract.

This article also available in Hindi also संविदा का एक विवरण इतिहास और अनुबंध से भेद.

Legal Study – Internet Of Educations

Contingent Contract with the suitable act, case law, example according to Indian contract act 1872

Contingent contract with the suitable act, case law, example according to Indian contract act 1872

Table of Contents

Introduction:

Essential elements of a contingent contract:

Example of a contingent contract:

KINDS OF CONTINGENT CONTRACT :

Case law related to contingent contracts:

Conclusion

Anticipatory Breach of Contract

Anticipatory breach of contract with the suitable act, case law, example according to Indian contract act 1872

Introduction:

REMEDIES FOR ANTICIPATORY CONTRACT BREACH

Case Law:

Conclusion:

Explain the Privity of Contract with exception with the suitable act, case law, example according to Indian contract act 1872

Explain Privity of contract with exception with the suitable act, case law, example according to Indian contract act 1872

Introduction:

Essentials of Privity of Contract:

Exceptions to the Privity of Contract:

Tweddle v. Atkinson (1861):

Shankarlal Narayandas v. Chimandas (1961):

Dunlop Pneumatic Tyre Co. Ltd. v. Selfridge & Co. Ltd. (1915):

Quasi-Contract with the suitable act, case law, example according to Indian contract act 1872

Quasi contract with the suitable act, case law, example according to Indian contract act 1872

Introduction:

QUASI-CONTRACT QUALIFICATIONS:

Conclusion:

Examples of quasi-contracts include:

CONSIDERATION AND IT’S ESSENTIAL

Explain Consideration and it's essential with the suitable act, case law, example according to Indian contract act 1872

Introduction

Essentials of Consideration:

Example of Consideration:

Acts related to consideration:

Case law related to consideration:

Conclusion

Void agreement with exception

Explain Void agreement with exception with the suitable act, case law, example according to Indian contract act 1872

Introduction

Case laws:

Conclusion

COMMUNICATION AND REVOCATION OF OFFER

Explain communication and revocation of offer with the suitable act, case law, example according to Indian contract act 1872

Introduction

Communication of Offer:

Revocation of Offer:

Modes of Revocation of Offer: Sec. 6

Essentials of Communication and Revocation of Offer:

Case Laws:

Conclusion:

Explain Proposal and it’s essential with the suitable act, case law, example according to Indian contract act 1872

Explain Proposal and it's essential with the suitable act, case law, example according to Indian contract act 1872

Essential Components of a Proposal:

FORMAT OF CONTRACT

FORMAT OF CONTRACT

Format of Contract:

Example of Contract:

For an offer to be valid and enforceable succeeding conditions are to be satisfied

1) There must be two parties

2) The proposal must be communicated

3) Offer must be distinguished from an invitation to offer

4) Offer may be expressed (or) implied

5) Offer may be specific (or) general

6) Offer must be made with a view to obtaining the assent

7) Offer mustn’t be a statement of price

8) Offer must be able of creating legal relations

9) Offer must be specific, definite, and not vague

Conclusion:

A Detail History of Contract and Distinguish From Agreement

A Detail History of Contract and Distinguish From Agreement

HISTORY AND NATURE OF CONTRACT ACT

Law is divided into two types:

Two different types of law are classified:

Father of Contract: Sir William R. Anson

Difference Between Agreement And Contract