INDIAN CONTRACT ACT 1872 UNIT 1
ALL THE TOPICS THAT ARE IN CA FOUNDATION BUSINESS LAW 1st CHAPTER'S UNIT 1 IS HERE -
1. CONTRACT - DEFINITION SECTION 2(H), AGREEMENT AND ENFORCEABILITY BY LAW
THIS IS A SMALL BUT IMPORTANT TOPIC AND IS BASICALLY A INTRODUCTION TO THE OVERALL CHAPTER AS IT CONSTITUTES THE DEFINITIONS {SECTION2} WHICH INCLUDES PROMISE, DIFFERENCE BETWEEN AGREEMENT AND CONTRACT ETC.
2. ESSENTIAL ELEMENTS OF CONTRACT
WHICH ARE MENTIONED IN SECTION 10 AND NOT MENTIONED IN SECTION 10
THIS TOPIC HAS SOME POINTS WHICH ARE IMPORTANT LIKE ELEMENTS OF CONTRACT - 2PARTIES, FREE CONSENT, MUST INTEND TO CREATE LEGAL RELATIONSHIP, CERTAINTY OF MEANING which means agreement should be definite, for example - a agrees to b that he will sell oil to him but in the above example, there is no mention of which oil specifically so this should be kept in mind while making a contract and keep your priorities straight man., FORMALITIES, POSSIBILITY OF PERFORMANCE,
AND NOW SOME THINGS ARE IN SECTION 10 LIKE -
OFFER AND ACCEPTANCE, FREE CONSENT Conses as idem, CAPACITY OF PARTIES, CONSIDERATION quid pro quo, CONSIDERATION MUST BE LAWFUL, AGREEMENT MUST NOT EXPRESSLY declare TO BE VOID agreement should not be something prohibited by law either expressly or impliedly. enough on this topic
3. TYPES OF CONTRACT
THERE ARE THREE BASIS TO CATEGORIZE TYPES OF CONTRACT
1. BASED ON VALIDITY OF ENFORCEABILITY
2. ON THE BASIS OF FORMATION
3. ON THE BASIS OF PERFORMANCE
NOW ON THE BASIS OF VALIDITY OF ENFORCEABILITY, THERE ARE 5 TYPES OF CONTRACT WHICH ARE THE FOLLOWING -
VALID
VOID
VOIDABLE
ILLEGAL CONTRACT
UNENFORCEABLE CONTRACT
AND THERE ARE DIFFERENCES B/W VOID AND ILLEGAL AND ILLEGAL AND UNENFORCEABLE AND VOID AND VOIDABLE
NOW ON THE BASIS OF FORMATION
THERE ARE 5 TYPES OF CONTRACTS IN GENERAL
EXPRESS
IMPLIED - TACIT(SILENT)
QUASI
E.COM AND OTHERS
NOW THERE ARE CONTRACTS ON THE BASIS OF PERFORMANCE
EXECUTED
EXECUTORY----UNILATERAL AND BILATERAL
NOW WE MOVE TO THE NEXT TOPIC WHICH IS OFFER\PROPOSAL
4. SECTION 2A
WHEN A PERSON SIGNIFIES HIS WILLINGNESS TO DO ANYTHING OR ABSTAIN FROM DOING ANYTHING TO ANOTHER PERSON WITH A VIEW TO OBTAINING THE ASSENT OF THAT OTHER TO SUCH ACT OR ABSTINENCE, HE IS SAID TO MAKE A PROPOSAL.
KINDS OF OFFER
ON THE BASIS OF 2 POINTS- HOW MADE AND TO WHOM MADE?
CLASSIFICATION OF OFFER
GENERAL, SPECIAL, COUNTER, CROSS, STANDING OFFER
CASE LAW RELATED TO GENERAL OFFER IS CARLILL VS CARBOLIC SMOKE BALL COMPANY 1893
CASE LAW RELATED TO SPECIAL OFFERS IS BOULTON VS JONES
ESSENTIALS OF A VALID OFFER
1. IT MUST BE ABLE TO CREATE A LEGAL RELATIONSHIP
2. OFFER MUST BE COMMUNICATED (GAURI DUTT VS LALMAN SHUKLA)
3. OFFER IS DIFFERENT FROM INVITATION TO OFFER
HARRY VS NICKERSON, HARVEY VS FACIE
WHAT IS AN INVITATION TO OFFER? AND DIFFERENCE B/W OFFER AND INVITATION TO OFFER
WHEN A PARTY WITHOUT EXPRESSING HIS FINAL WILLINGNESS PROPOSE CERTAIN TERMS ON WHICH HE IS READY TO NEGOTIATE HE DOES NOT MAKES An OFFER BUT ONLY INVITES TO MAKE OFFER ON THOSE TERMS.
WHEN A PARTY WITHOUT EXPRESSING HIS FINAL WILLINGNESS PROPOSE CERTAIN TERMS ON WHICH IS WILLING TO NEGOTIATE, HE IS NOT MAKING An OFFER BUT MERELY INVITES TO NEGOTIATE ON THOSE TERMS.
EXAMPLES OF INVITATIONS TO OFFER ARE AS FOLLOWS
1. DISPLAY OF GOODS IN STORE WINDOWS
2. INVITATION BY THE COMPANY TO THE PUBLIC TO SUBSCRIBE TO ITS SHARES
3. TELLING THE PRICE OF THE PRODUCT WHEN ASKED BY THE CUSTOMER
4. AUCTION SALES ADVERTISING.
OFFER 2A IS OVER.
5. ACCEPTANCE
SECTION 2B
WHEN THE OFFEREE SIGNIFIES HIS ASSENT ON THE OFFER BEING MADE, THE OFFER IS SAID TO BE ACCEPTED AND CALLED A PROMISE.
LEGAL RULES REGARDING ACCEPTANCE OF OFFER AND IMPORTANT CASE LAWS --
1. OFFER MUST ONLY BE ACCEPTED BY OFFEREE ONLY
CASE LAW- BOULTON VS. JONES {BROCKELHURST SELLS BUSINESS TO BOULTON AND JONES IS A CREDITOR TO BROCKLEHURST AND OFFERS TO BUY SOMETHING FROM HIM AND BOULTON SENDS HIM GOODS BUT JONES REJECT IT BECAUSE OF THE OFFER WAS TO BROCKLEHURST AND NOT BOULTON}.
2. ACCEPTANCE MUST BE IN A PRESCRIBED MANNER.
3. TIME {MUST ACCEPT IN PRESCRIBED TIME AND DEPENDS UPON FACTS OF CONTRACT}
4. MERE SILENCE IS NOT ACCEPTANCE
CASE LAW-- {FELTHOUSE VS. BINDLEY}
5. ACCEPTANCE MUST BE COMMUNICATED
CASE LAW-- {BROGDEN VS. METROPOLITAN RAILWAY COMPANY}
{GIRDHARILAL VS. BHADWANDAS}
ACCEPTANCE IS OVER HERE...
6. COMMUNICATION OF OFFER AND ACCEPTANCE
COMMUNICATION OF OFFER
WORK IN LONG-DISTANCES CAUSE IN REAL-TIME TALK FROM REAL MEETINGS IT WON'T BE NECESSARY
WHEN THE LETTER IS REACHED AT PLACE OF OFFEREE AND HE HAD READ IT WELL.
COMMUNICATION OF ACCEPTANCE
WHEN MANY WAYS -- MAIN WAYS ARE ---
BY ACT- ORAL OR WRITTEN
BY OMISSION TO DO SOMETHING\ ACTION
WHEN A LETTER IS ACCEPTED BY THE OFFEREE, IT IS CONSIDERED TO BE ACCEPTED AND IF BY CHANCE LETTER OF ACCEPTANCE BY MISTAKE HAS GONE TO THE WRONG ADDRESS. IT WON'T MATTER.
COMMUNICATION OF SPECIAL CONDITION
CASE LAW-- MUKUL DUTTA VS. INDIAN AIRLINES
7. COMMUNICATION OF PERFORMANCE
FROM THE VIEW OF THE OFFEREE
FROM THE VIEW OF THE OFFERER
SAME AS COMMUNICATION OF OFFER AND ACCEPTANCE
HERE MARKS THE END OF THE COMMUNICATION PART
8. REVOCATION OF OFFER AND ACCEPTANCE
THE OFFER CAN BE REVOKED BY SENDING THE TELEGRAM TO THE OFFEREE BEFORE THE OFFEREE HAS ACCEPTED THE OFFER.
JUST BEFORE THE COMMUNICATION OF ACCEPTANCE IS COMPLETE.
THE ACCEPTANCE CAN BE REVOKED IF THE REVOCATION LETTER REACHES TO OFFERER BEFORE OR WITH A LETTER OF ACCEPTANCE.
IT CAN ALSO BE REVOKED BY WAY OF TELEPHONE
MODES OF REVOCATION ARE -- BY NOTICE, BY LAPSE OF TIME, BY NONFULFILMENT OF CONDITION OF PRECEDENT, BY COUNTER OFFER, BY DEATH, BY NON-ACCEPTANCE OF OFFER ACCORDING TO THE PRESCRIBED OR USUAL MODE.
END OF UNIT 1 OF INDIAN CONTRACT ACT 1872.
15-5-2022, 16:55.
ok thanks for uploading this quick notes i. i am looking forward for more of this quick notes
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