INDIAN CONTRACT ACT (1872)

Contract- According to section 2(h)of the Indian contract act 1872, An agreement enforceable by law is a contract In other form of an equation, it can be shown as-

CONTRACT=AGREEMENT+ENFORCEABILIT Y BY LAW

What is an agreement??? According to section 2(e) of the indian contract act 1872, every promise and every set of promises forming consideration for each other is known as an agreement. What is promise??? According to section 2(b), A proposal when accepted become a promise.

What is an enforceability of an Agreement??? An agreement is said to be enforceable by law if it creates some legal obligation. Only legal agreements have intention to create legal obligation and so they can be enforced by law. For example, A proposed to B to take dinner with him and b accepted it. We can say that there has been made an agreement between A and B. but it is not enforceable by law.

ESSENTIALS OF A VALID CONTRACT

In order to create a valid contract there must be an agreement between two parties. One party makes a valid offer and other party accept it. The offer must be definite and unconditional. Te acceptance should also be in prescribed manner. It must be communicated to offer. For example- A offered B to sell house for rupeers 5 lakes and B accepted the same. Its an example of valid offer and acceptance.

OFFRER AND ACCEPTANCE

Intention to create legal relationship

Another essential element of valid contract is that the parties must have intentions to create legal relationship. For example- A agrees to sell his scooter for rupees 10,000 to B and B also accepted it. This is a valid contract because both parties have create intention to create legal relationship. If anyone of them fails to perform his promise another can go to the court to either compel other to perform the contract or pay damages.

Lawful consideration
An agreement must be supported by consideration. It means something in returns. Both the parties must get something in return for the promise. A promise without consideration is not enforceable at law. For example- A agreed to sell is house for rupees 50,000 to B. It can be said that that house is consideration for B and rupees 50,000 is consideration for A.

Free consent
For a valid contract, parties must give there consent freely. The consent of the parties is said to be free when they agree on the same thing in the same sense. For example- R put a knife point on the neck of S and ask to sell his scooter for rupees 1,000. S agreed due to fear. The consent is not free because it is influenced by coercion.

Lawful object
The object of the contract is said to be unlaeful if1. It is forbidden by law. 2. It is fraudulent. 3. It involves an injury to ye person or property of any other. 4. It is immoral or 5. It is opposed to public policy. For example- A hired a house from B for use of this house for gambling purpose. The object is said to be unlawful.

Not expressly declared void

It is also necessary that the agreement must not have been declared to be expressly void . For Example- A agreed to pay to B rupees 50,000 if B does not marry in his life and B agreed . The agreement is in rsetraint of marriage and hence void.

Possibility of Performance
The terms of agreement must be such that they are possible to perform . This is based on the maxim Lex non cogid ad impossiblia i.e. the low does not compel to do wat is impossible. For example if B promised A to make him immoral . This agreement is void because it is imposible to perform .

Legal Formalities
The other legal requirements should also be fulfilled. Generally ,it is believed that the agreement must be written. It is not essential. Oral and written agreements both are equally enforceable by law.

VOID AGREEMENTS AND CONTIGENT CONTRACTS

Meaning of void agreement:

As per section 2(g) of the Indian Contract Act, 1872 a void agreement is an agreement which is not enforceable by law.

CONTIGENT CONTRACT {Sec31}

A contingent contract is a

contract to do or not to do something if some event coalleral to such contract , does or does not happen. Insurance contracts provide the best example o contgent

QUASI CONRACT

 A Quasi Contract is not a contract at all

QUASI CONTRACTS

one or the other essentials for the formation of a contract are absent. It an obligation imposed by law upon a person for the benefit of another even in the absence of a contract . It is based on the principle of equity, which means no person shall be allowed to injustly enrich himself at the expenses of another. Such obligations resemble those created by a contract.

FEATURES OF A QUASI CONTRACT

1) It is imposed by law and does not arise from any agreement. 2) The duty of a party and not promise of any party is the basis of such contract. 3) The right under it is always a right to money and generally, though not always, to a liquidated sum of money. 4) The right under it is available against specfic persons and not against the world. 5) A suit for its breach may be filled in the same way as in case of a complete contract.

BREACH OF CONTRACT

BREACH OF CONTRACT
A breach of a contract occurs if any party refuses or fails to perform his part of contract or by his act makes it impossible to perform his obligation under the contract. In case of breach , the aggrieved party (i.e. the party not at fault) is relived from performing his obligation and gets a right to proceed against the party at fault. It may be arise in two ways: a) Anticipatory Breach b) Actual Breach

ANTICIPATORY BRECH OF A CONTRACT [Sec39] It occurs when the party declares his intention of not performing the contract before the performance is due. Thus, when a party refuses to perform a contract even before its due for performance, it is called anticipatory breach.

ACTUAL BREACH OF A CONTRACT

Actual breach of a
contract may take place in any of the two ways:

ON DUE DATE OF PERFORMANCE

If any party in a contract refuses or fails to perform his part of his contract at the time fixed for the contract, it is called the actual breach of a contract on due date of performance.

DURING THE COURSE OF PERFORMANCE

If any party has performed a part of the contract and then refuses or fails to perform the remaining part of the contract , it is called an actual breach of contract during the course of performance.

REMEDIES FOR BREACH OF CONTRACT

A) RESCISSION OF CONTRACT: It means a right not to perform obligation. In case of breach of contract , the promise may put an end to contract. In such a case, the aggrieved party is discharged from all the obligations in the contract and is entitled to claim compensation for the damage he has sustained because of non performance of the contract.

SUIT FOR DAMAGE

Damages are monetary compensation
allowed for loss suffered by the aggrieved party due to the breach of contract. The object of awarding damages is not to punish the party at fault but to make good the financial loss suffered by the aggrieved party due to the breach of contract.

SUIT FOR SPECIFIC PERFOMANCE

Suit for specific performance means
demanding the courts direction to the defaulting party to carry out the promise according to the terms of contract.

SUIT FOR INJUNCTION

courts stay order. Inunction means an order of the court which prhibits a person to do a perticuler act where a party to a contract does something which he promised not to do, the court may issue an order prohibiting hi from doing so.

Suit for injunction means demanding

SUIT FOR QUANTUM MERUIT

earned, right to quantum meruit means a right to claim the compensation for the work already done.

Quantum merit means as much as is