The Indian contract act 1872

What is a Contract
A contract is an agreement made between two or more parties which the law will enforce Sec. 2 (h) defines contract as an agreement enforceable by law. Agreement = offer + acceptance Contract = agreement + enforceability Sir William Anson defines contract as a legally binding agreement between two or more persons by which rights are acquired by one or more to act or forbearances (abstaining from doing something) on the part of the others.

Essential of Contract
offer and acceptance. There must be an
agreement based on a lawful offer made by person to another and lawful acceptance

Competent to contract or capacity: In order to

make a valid contract the parties to it must be competent to be contracted. According to section 11 of the Contract Act, a person is considered to be competent to contract if he satisfies the following criterion: The person has reached the age of maturity. The person is of sound mind. The person is not disqualified from contracting by any law.

Lawful consideration: An agreement to form a valid

contract should be supported by consideration. Consideration means something in return . It can be cash, kind, an act or abstinence. It can be past, present or future. However, consideration should be real and lawful.

Free Consent: To constitute a valid contract there must be free

and genuine consent of the parties to the contract. It should not be obtained by misrepresentation, fraud, coercion, undue influence or mistake.

Lawful Object and Agreement: The object of the

agreement must not be illegal or unlawful.

 Certainty, Possibility Of Performance

It is no contract , if there is no possibility for its performance. The terms of the contract must be clear and certain they must not be vague.

Intention To Create Legal Relationships

A contract to be enforceable it must create legal relationship between parties Mere domestic or social agreement do not give rise to create legal relationship.

Agreement not declared void or illegal:

Agreements which have been expressly declared void or illegal by law are not enforceable at law; hence does not constitute a valid contract.

Legal Formalities
A contract may be oral or in writing. If, however, the law requires for a particular contract, it should comply with all the legal formalities as to writing, registration and attestation

Classification according to formation

Express contract: Express contract is one which is
made by words spoken or written Implied contract: An implied contract is one which is made otherwise than by works spoken or written. It is inferred from the conduct of a person or the circumstance of the particular case

Quasi or constructive contract: It is a contract in which there is no intention either side to make a contract, but the law imposes contract. In such a contract eights and obligations arise not by any agreement between the practice but byoperation of law.

 Executed contract:It is a contract where both the

parties to the contract have fulfilled their respective obligations under the contract.

Classification according to performance

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

Classification according to enforceability:

A.

Valid contract: A contract which satisfies all the

conditions prescribed by law.

B. Void Contract: a void contract is a contract which

is valid when entered into but which subsequently became void due to impossibility of performance, change of law or some other reason.

C. . Voidable contract section : A voidable contract

is one which can be set aside or avoided at the option of the aggrieved party. Until the contract is set aside by the aggrieved party, it remains a valid contract.

A contract becomes voidable in following two cases also

1) When a person promises to do something for another person for a consideration but the other person prevents him from performing his promise, the contract becomes voidable at his option (Sec 53) 2) When a party to a contract promises to perform an obligation within a specified time, any failure on his part to perform his obligation within the fixed time makes the contract voidable at the option of the promisee (Sec 55)

Illegal Agreement: An illegal agreement is one which transgresses some rule of basic public policy or which is criminal in nature or which is immoral.
Unenforceable contract: An unenforceable contract is one which cannot be enforced in a Court of law because of some technical defect such as absence of writing or where the remedy has been barred by lapse of time.

Thank you
Swati Sneha Nikita Prachi Pooja Indra