SPECIAL FEATURES OF CONTRACT

GHULAM MURTAZA KORAI IoBM

SPECIAL FEATURES OF CONTRACT

The law of contracts is not whole law of agreements. The law of contract is the law of only those agreements which create legal obligations (i.e. an obligation which is enforceable by law) The law of contracts is not whole law of obligations. The law of contracts is the law of only those obligations which arise out of agreements.

SPECIAL FEATURES OF CONTRACT

Offer and its acceptance constitute an agreement. Agreement and its enforceability constitute a contract. An agreement may or not create a legal obligation. A contract necessarily create a legal obligation. Every agreement need not necessarily be a contract. All contracts are necessarily agreements. Agreement is not concluded or a binding contract. Contract is concluded and binding on the concerned parties.

SPECIAL FEATURES OF CONTRACT

Executed Contract: It is a contract where both the parties to the contract have fulfilled their respective obligations under the contract. Executory Contract: It is a contract where both the parties to the contract have still to perform their respective obligations. Partly executed and partly executory contract: It is a contract where one of the parties to the contract has fulfilled his obligation and the other party has still to perform his obligation.

SPECIAL FEATURES OF CONTRACT

Legal formalities: The agreement must comply with the necessary formalities as to writing, registration, stamping, etc. if any required in order to make it enforceable by law. A minor is a person who has not attained majority. A person is deemed to have attained majority is as under: (1) Where a guardian of minors person or property is appointed under the Guardian and Wards Act. It is on completion of 21 years. (2) Where minors property has passed under the superintendence of the court of Wards. It is on completion of 21 years. (3) in other cases it is on completion of 18 years.

SPECIAL FEATURES OF CONTRACT

Mistake of Fact: (a) Bilateral Mistake: The term bilateral mistake means where both the parties to the agreement are under a mistake. According to Section 20, Where both the parties to an agreement are under a mistake as to a matter of fact essential to the agreement, the agreement is void. Thus the following three conditions must be satisfied before declaring a contract void under this section: (1) Both the parties must be under a mistake. (2) Mistake must be of fact but not law. (3) Mistake must relate to an essential fact.

SPECIAL FEATURES OF CONTRACT

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Bilateral Mistake as to the Subject Matter: An agreement is void where there is a bilateral mistake as to subject matter. It includes the following: Mistake as to the existence of subject matter: Example A agrees to buy from a certain horse. It turns out that the horse was dead at the time of bargain though neither party was aware of the fact. It is a void agreement. Mistake as to quality of subject matter: Example A agrees to buy from B all his horses believing that B has two horses but B actually has three horses.

SPECIAL FEATURES OF CONTRACT

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Mistake as to quality of subject matter: Example A agrees to buy a particular horse from B. both believe it to be a race horse but it turns to be a cart horse. Mistake as to the price of subject matter. Mistake as to the identity of subject matter. Mistake as to the title of subject matter.

SPECIAL FEATURES OF CONTRACT

Wagering Agreements: An agreement between two persons under which money or moneys worth is payable, by one person to another on the happening or non-happening of a future uncertain event is called a wagering event. Such agreements are chance oriented and therefore, completely uncertain. Example A promises to pay Rs. 20,000 to B if it rained on a particular day, and B promises to pay Rs. 20,000 to A if it did not. Such agreement is a wagering agreement.

SPECIAL FEATURES OF CONTRACT

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Essentials of a Wagering Agreement: Promise to pay Money or Moneys Worth. Uncertain Event. Mutual chances of Gain or Loss. Neither Party to have Control over the Event. No other Interest in the Event.