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Indian Contract Act 1872

This document discusses the key differences between agreements and contracts according to the Indian Contract Act of 1872. An agreement is a simple promise between two parties, but lacks enforceability. A contract is an agreement that is enforceable by law. The essential elements for a valid contract include: free consent between parties with capacity to contract, lawful consideration, no misrepresentation, and the agreement must not be expressly declared void.

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186 views1 page

Indian Contract Act 1872

This document discusses the key differences between agreements and contracts according to the Indian Contract Act of 1872. An agreement is a simple promise between two parties, but lacks enforceability. A contract is an agreement that is enforceable by law. The essential elements for a valid contract include: free consent between parties with capacity to contract, lawful consideration, no misrepresentation, and the agreement must not be expressly declared void.

Uploaded by

ranger
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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BUSINESS LAW (BBA-N 105)

INDIAN CONTRACT ACT 1872

In common language, we use two terms- Agreement and Contract.

Let us discuss these terms with the help of an example-

Case 1. 'A' promised to give Rs. 500/- to 'B'.

case 2- 'A' gave a written promise to give Rs. 500/- to 'B' duly signed by him.

If we analyze both the cases, then in Case 1, 'A' can deny his promise and 'B' cannot present any
proof of the promise, but-

In Case 2, if 'A' denies, then 'B' has a proof of promise and so, 'A' is bounded by law to fulfill his
promise..

Case 1 is an AGREEMENT and case 2 is a CONTRACT. Hence, we can define -

AGREEMENT=OFFER + ACCEPTANCE

CONTRACT IS AN AGREEMENT ENFORCEABLE BY LAW (Sec2(h) of


Indian contract act 1872)

Essentials of a contract

Essentials of a contract

capacity to contract Two parties Contract


Free consent Lawful
should not be
Consideration # No single party
# No # The parties should void
be in proper mental can enter into
force/coercion is # There should be
and economical contract
valid an object as a
base for contract state while entering
into a contract

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