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Key Aspects of Indian Contract Act

The document summarizes key aspects of the Indian Contract Act of 1872. [1] It outlines the main sections of the act related to general provisions, indemnity/guarantee, bailment/pledge, and agency. [2] It defines the essential elements of a valid contract according to section 10 of the act as agreement, lawful consideration, lawful object, competent parties with free consent. [3] Key points about offer/acceptance, void vs illegal agreements, and impact of coercion, undue influence or fraud on free consent are also summarized.

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67 views2 pages

Key Aspects of Indian Contract Act

The document summarizes key aspects of the Indian Contract Act of 1872. [1] It outlines the main sections of the act related to general provisions, indemnity/guarantee, bailment/pledge, and agency. [2] It defines the essential elements of a valid contract according to section 10 of the act as agreement, lawful consideration, lawful object, competent parties with free consent. [3] Key points about offer/acceptance, void vs illegal agreements, and impact of coercion, undue influence or fraud on free consent are also summarized.

Uploaded by

samsun009
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Indian Contract Act, 1872

Came in force: 1st September 1872

Sections: 1-75: General Provisions

76-123: repealed by sales and Goods Act

124-147: Indemnity and Guarantee

148-181: Bailment and pledge

182-238: Agency

239-266: repealed by partnership Act

All Contracts are Agreements but All Agreements are not Contracts

Contract: Proposal – Promise – Consideration – Agreement – enforceable – Contract

1) Types of Proposal [offer]


a. General
b. Specific
c. Cross offer [identical offer]
d. Counter offer [bargain]
e. Standing offer – brick buying for building for a year
f. Express
g. Implied
2) Invitation to offer – no seat available example on irctc website
3) Communication to offer
a. Single date for both
b. It is completed when it comes to knowledge of offeree
4) Communication to acceptance
a. Two dates for offeror and offeree
b. For offeror
i. Communication is complete when offeree put his acceptance into course of
transaction.
c. For offeree
i. Communication is complete when offeree has knowledge of acceptance from
offeree.
5) Valid revocation
a. Of offer
i. By offeror
ii. Can revoke the offer before acceptance is put into course of transaction
b. Of acceptance
i. By offeree
ii. Can revoke the acceptance before acceptance comes to knowledge of the
offeror

Contract: Every agreement enforceable by law is a contract.

Section 10: Consideration – competent parties – free consent – lawful object – offer and acceptance
There should be an intention to create legal action. For example promise of giving mobile on passing
12th exam.

Free consent: COUFMM: Coercion, undue influence, fraud, mistake and misrepresentation

Every contract is an agreement but every agreement is not a contract.

1) Essentials of contract: section 10


a. Agreement
b. Free consent
c. Parties competent to contract
d. Lawful consideration
e. Lawful object
f. Not expressly declared to be void
2) Illegal agreement
a. Prohibited by law
3) Difference between void and illegal agreement
a. Void agreement [not enforceable by law]: no fine or jail
b. Illegal agreement [prohibited by law]: fine or jail
4) Collateral agreement
a. Loan from bank
b. Loan agreement and guarantee agreement
c. Guarantee agreement is called as collateral agreement
d. Collateral agreement of illegal main agreement is void
e. But Collateral agreement of void agreement is not void
5) Partly legal and partly illegal
a. In case of contract which has legal and illegal agreement with the same contract, the
whole contract would be void.
b. Example one bad fish spoils other fishes.
6) Free consent: section 14
a. Agreement should not cause by COUFMM
b. COUFM: voidable
c. Mistake: void
d. In fraud: damages can be claimed
e. In representation: damages cannot be claimed

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