Business Low Indian Con Act, 1872

8/6/2019 Business Low Indian Con Act, 1872

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PPT PRESENTATION ON THE INDANCONTRACT ACT, ESSENTAL FOR VALDCNTRACT, QUASI ACT ANDREMEDIESFOR BREACH OF CONTRACT


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Definition of a Contract

Agreement that can be enforced in

court.

Formed by two or more parties.

Failure to perform results in breach and

damages.

Acc. to Sir William Anson Contract s legally binding agreementmade b/w to or more person by which rights are acquired byone or more to acts or forbearamces on the part of other


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AGREEMENTA FOUNDATION STONE OF A

CONTRACTAGREEMENT =OFFERS+ ACCEPTANCE

OBLIGATION THE BENDING OF PERSON TO DO

SOMETHING

ENFORCEABILITY COURSE OF ACTION UPON A PERSON


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0N THE BASIS OF FORMATION

EXPRESS CON. IMPLIED CON. QUASI CON.

ON THE BASIS OF PERFORMANCE

EXECUTED CON. EXCUTORY CON.


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Agreement

Intention to create legal relationship.

Legal formalities .

Agreement not expressly declared void .

Free Consent of the parties .

Lawful consideration .

Capacity of parties to contract .

Certainty of meaning .


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Essentials of offer:

It must be an expression of the willingness to do or

abstain from doing something. Such expression must be to another person.

Such expression must be made with the intention to

obtain the assent of the other person to such an act orabstinence.


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Acceptance must be given only by the person to whomthe offer is made.

Must be absolute & unqualified. Must be in prescribed mode or reasonable manner.

Must be communicated.

Within reasonable time.

Acceptance must succeed an offer.

Rejected offers can be accepted only if renewed.


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Usually of sound mind.

Usually of unsound mind

Causes: idiocy

Lunacy

Drunkenness

Hypnotism

Mental decay Effects: Void & inoperative

Similar to agreements entered into by minors.


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Alien enemies

Foreign sovereigns & ambassadors

Convicts

Married women

Insolvents


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Coercion

Undue influence

Misrepresentation

Fraud

Mistake


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Voidable

The party exercising coercion exposes himself to criminal

liability under the IPC, besides an action in contract. Burden of proof lies on the party who wants to set aside

the contract on the plea of coercion.


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Arepresentation means a statement of fact made by oneparty to the other either before or at the time of contract,relating to some matter essential to the formation of thecontract, with an intention to induce the other party toenter into a contract.

It may be expressed by words spoken or written or impliedfrom the acts or conduct of the parties.

In law, a representation when wrongly made without anintention to deceive the other party is known asmisrepresentation.


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Fraud means & includes any of the following actscommitted by a party with an intention to deceive orinduce the other party to enter into a contract:

1. Afalse statement made intentionally is fraud

2. Active concealment of a material fact by a personhaving knowledge of the fact is fraud. However, merenon-disclosure is not a fraud, if there is no duty to

disclose.3. Apromise made without an intention of performing it.

4. Any cat or omission declared by law to be fraudulent.

5. Any other act fitted to deceive.


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Mere silence as to facts likely to affect the willingness

of a person to enter into a contract is not fraud, unless:

1. Such a person is under a duty to speak or2. Silence is in itself equivalent to speech.


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Right to rescind the contract.

Affirm the contract and ask for restitution, i.e., to be

put in a position, he would have been, if the statementmade had been true.

The aggrieved party can also claim damages.

Fraud by a stranger to the contract does not affect thecontract.


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Fraudulent statement must be instrumental in inducingthe party to enter into a contract.

The plaintiff must have been actually deceived by thefraudulent statement.

No action will lie if the plaintiff does not sustain anyloss or injury.

The contract is notVoidable if the party had enoughmeans at its disposal to discover the truth with ordinarydiligence.


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Mistake of law:

1. Mistake of law of the country.

2. Mistake of foreign law.

Mistake of fact:

1. Bilateral mistake

2. Unilateral mistake


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Void

No restitution.


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y Agreements in restraint of marriage

Exception : an agreement restraining the marriage of a minor isvalid.

y Agreements in restraint of trade any kind of restraint of trade,whether reasonable or not is void; however agreementsrestraining freedom of action necessary for carrying on abusiness are not void.

Exception: Sale of goodwill (provided the restraint isreasonable in case of time & space), partners agreements, tradecombinations, negative stipulation in service agreements.


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This sec. shall not be deemed to render unlawful a

subscription, or contribution, or an agmt. to subscribe or

contribute, made or entered into for or toward any plate,prize or sum of money, of the value or amount of 500

rupees or upwards, to be awarded to the winner or

winners of any horse race.


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In case of quasi contracts there is no offer, acceptance orconsensus; in fact there is no intention on the part of either

parties to enter into a contract; still the law, from theconduct & relationship between the parties, implies apromise, imposing obligation on one party & conferring aright in favor of the other party. Thus under certain specialcircumstances, obligations resembling those created by acontract are imposed by law although the parties havenever entered into a contract.


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Aclaim for necessaries supplied to a person incapable ofcontracting

Aperson who is interested in the payment of money (inorder to protect his own interest), which another personis bound by law to pay, and who therefore pays it, isentitled to be reimbursed

Obligation of person enjoying non-gratuitous act the actmust have been done lawfully in good faith; the actmust be non-gratuitous & the person for whom the actis done must have enjoyed benefit of the act.


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Under a contract legal obligations are created, which

both the parties to a contract are under a duty to

fulfill. Fulfilling of such legal obligations, orperformance of the promise under a contract by both

the parties is known as performance of a contract.

Performance of all the obligations arising out of a

contract, by all the parties to a contract is the normal& natural mode of discharging a contract.


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Only the promisee can demand performance of the

promise under a contract, a third party cannot demand

performance, even though it was made for his benefit. A contract involving personal skill, taste etc., must be

performed by the promisor itself. Where it appears from

the nature of the contract, that the parties intend that

the promise of the contract should be performed by thepromisor itself; then it must be performed by the

promisor only.


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Where a contract is of an impersonal nature, theneither the promisor himself or his agent may performthe contract.

Where death of the promisor occurs, before theperformance of the contract, then in such case theliability of performance falls on his legalrepresentatives; unless a contrary intention appearsfrom the contract.

Where a promisee accepts performance of the promisefrom a third person, however afterwards he cannotenforce it against the promisor.


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Where several joint promisors with a single

promisee.

Where a single promisor makes a promise withseveral joint promisees.

Where several joint promisors make a promise

with several joint promisees .


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Unless a contrary intention appears from thecontract, the right to claim performance restswith all the promisees jointly & a single promisee

cannot claim performance. Unless a contrary intention appears from the

contract, all promisors must jointly fulfill thepromise.

In the absence of an express agmt. to thecontrary, the promisee is entitled to compel anyone or more of the joint promisors to perform thewhole of the promise.


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Where one of the joint owners is made to perform the wholecontract, he may realize equal contribution from other joint

promisors, unless a contrary intention appears from the contract.

Where any one of the joint owners fails to make a contribution,then the remaining joint promisors must bear the loss arising

from such failure, in equal shares.

In case of a joint promise, if one of the joint promisors isreleased from his liability by the promisee, his liability to the

promisee ceases, but this does not discharge the other promisorsfrom their liability; neither does it free the joint promisor soreleased from his liability to contribute to the other joint

promisors.


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Assignment of contract means transfer of the rights& liabilities arising under a contract, to third

party, with or without concurrence of the otherparty to the contract.

An assignee can bring an action on his owninitiative, against the other party, without making

the assignor a party to the suit. Contracts involving personal skill, taste etc.,

cannot be assigned.


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Where time & place is prescribed by the

promisee, the performance of the contract

must be at the specified time & place. Where it is not prescribed, then it must be

within a reasonable time & at a proper place


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The promise must be performed by the promisor

in the manner prescribed by the promisee. Such

performance must be in strict accordance withthe mode prescribed.


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If parties to a contract agree to alteration, novation or

rescission , the original contract need not be performed.

Where the parties to a contract agree to remit theperformance of the promise, either wholly or in part, the

original contract stands discharged.

In case of aVoidable contract, if the party who has the

option, chooses to rescind the contract, then the other

party need not perform his promise.


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Where there is neglect or refusal to provide the promisor

with reasonable facilities for the performance of his

promise, by the promisee; then in such a case the promisoris excused for the non-performance of the contract.


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Discharge of a contract refers to a

process, by which the rights and

obligations arising out of a contractcome to an end. Thus, discharge of acontract means termination of a

contract.

A contract may be discharged in anyof the following ways:


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Death: contracts involving personal skill or ofa personal nature, stand discharged with thedeath of the promisor.

Insolvency: when the insolvency court passesan order of discharge, the contract standsdischarged.

Merger: where an inferior right contractmerges with a superior right contract, theformer stands discharged automatically.

Unauthorized material alteration: renders thecontract void and hence it standsdischarged.


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Breach of contract brings an end to the

obligations arising out of a contract, and

hence the contract stands discharged. The aggrieved party can sue for

damages.

Breach of contract may be anticipatory

or actual.


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Rescission of contract

Suit for damages Suit upon quantum meruit

Suit for specific performance

Suit for an injunction


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THANKSPRESENTED BY DINESH AND

ANKITA OF BBA-II SECOND SEM.


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QUARRYIT,S YR TERM

Business Low Indian Con Act, 1872

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