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swapnil tambe   18 December 2019

contract

what are the essential elements of contract in contract act


Learning

 3 Replies

G.L.N. Prasad (Retired employee.)     19 December 2019

Please search in google with those keywords and you can find in detail those essentials and with latest case laws and case studies. In simple sentence identity of minds on promise/commitment between sound persons for consideration and for a  possible, legal, promise of a doing one thing or not doing a thing is a contract..

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Sankaranarayanan (Advocate)     20 December 2019

instead of  use the Seach Engine in computer, buy a book and read... it will help you 

adiga   27 January 2020

1st we will understand what  contract is basically contract is agreement between various parties framed and validated by the indian contract act 

Indian contract act  - under Section 2 of Indian contract act 

1 section 2(a) there is a brief explanation of offer which states that 

(a) when one person signifies to another his willingness to do or to abstain from doing anything , with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal.

2 After offer there shoud be acceptance which is explained under section 2(b) which states that 

(b) when the person to who the proposal is made signifies his assent thereto,the proposal is said to be accepted.A proposal, when accepted, becames a promise.

3 Intention to create a legal relationship: There must be a clear intention among the parties that the agreement should be attached by legal consequences and create a legal obligation.

Agreements of a social or domestic nature do not contemplate a legal relationship, and as such, they do not give rise to a contract.

4 There should be a lawful consideration which is explained in the Section 2(d) in The Indian Contract Act, 1872

(d) When, at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing, something, such act or abstinence or promise is called a consideration for the promise.
In general worlds  A valuable Consideration in the sense of law may consist either in some Rights, Interest, Profit or Benefit accruing to one party or some forbearance detriment, loss or responsibility given, suffered or undertaken by the other.

5 Free consent- Free consent of the parties is another essential of the contract. section 14of the Act defined the term free consent as follows-

consent is said to be free when it is not caused by –

  1. Coercion – Committing any act forbidden by The Indian Penal Code 1860 or unlawful detaining of property, or threatening to commit these acts.  
  2. Misrepresentation – It means a false representation.
  3. Mistake - there are two types of mistakes i.e. mistake fact and mistake of law.
  4. Lawful object – For the formation of a contract, it is also necessary that the parties to an agreement must agree to a lawful object. The object must not be fraudulent or illegal or immoral or against the public policy or must not imply injury to the person or the other of the reason mentioned above the agreement is void. if A forces B to sign a contract for murdering C. This is not a lawful object. Hence, the contract will be void.
  5. Not expressly declared void- An agreement must not be one of those, Which have been expressly declared to be void.

 

 


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