HIMACHAL PRADESH NATIONAL LAW UNIVERSITY SHIMLA

LAW OF CONTRACT &

SPECIFIC RELIEF ACT ASSIGNMENT

Course In-Charge:

Dr. Ruchi Gupta

Assistant Professor of Law

HPNLU, Shimla

Submitted by: Prashansa Pradhan

1020220084

B.A.LL.B. (Hons.)
 Sr.no Sub- Topics Pg. no.

1. Acknowledgment 3.

2. Declaration 4.

3. Abstract 5.

4. Introduction 6.

5. 7.

6. 8.

7. 10.

8. 11.
9. 12.

10. 13.

11. Conclusion 14 .

CONTENT TABLE
 ACKNOWLEDGEMENT

The success and outcome of this assignment required guidance and assistance from many people,
including my teacher and friends. I am incredibly grateful to have gotten this insightful topic
from Dr. Ruchi Gupta. I express my gratitude to my subject teacher. I want to thank all those
who contributed to the development of this project.

I want to thank my teacher and friends for their supervision and assistance. Dr. Ruchi Gupta
provided her guidance till the completion of my project work by providing and explaining the
necessary information. She allowed us to work on this topic. She has always been patient enough
to listen and solve our queries. She helps us to explore the different dimensions of the problems
and provides everyone with varying aids of teaching.

I am thankful and fortunate enough to get constant guidance and support from my parents,
friends, and other staff members, which helped me complete my assignment work.

Moreover, I would like to acknowledge the staff of our University, who permitted me to access
all the required equipment to complete this project. This assignment could not have been
achieved without each one’s help.
 DECLARATION

I, Prashansa Pradhan, am pleased to submit the assignment titled Consideration: Difference

This work submitted here is my original piece of work. I have provided correct and relevant
information in my career. I have read and understood the content of my entire assignment.

Due credit has been given to the authors from whom the content has been taken. I have not
copied anyone’s work. The work has been appropriately acknowledged, and references to the
material used, including printed sources, the internet, or any other sources, have been mentioned
per the university requirements. The work has not been submitted to any other institution for any
other degree/diploma/certificate in this University or any other University in India or abroad. We
have followed the guidelines provided by the university in writing the report.

Prashansa Pradhan

1020220084

B.A. LLB. (Hons.)

On September 1, 1872, the Indian Contract Act, passed the previous year, went into effect.
Furthermore, it is stated that the Contract Act's provisions will not impact any statutes, acts, or
regulations that it does not specifically repeal, commercial customs or usages, or any contract
clauses that do not conflict with its rules. A contract is a written agreement that is binding on
both parties. The reciprocal commitments made by the two sides make up an agreement. In a
contract, each party's pledge is enforceable in court. The following is a material term of a valid
Contract within Sections 2(h) and 10. These include an offer and acceptance, the intention to
establish a contract, the ability to enter into a contract, a lawful consideration, free consent, a
lawful object, the lack of an express void declaration, and legal formalities. The focus of the task
is consideration. According to Section 25 of the Indian Contract Act, a contract made without
consideration is null and invalid. A Contract must include consideration as a necessary
component. Salmond and Winfield assert that a commitment made for consideration is a contract
and one made without consideration is a gift.
 INTRODUCTION

In India, a contract is defined as an agreement that grants personal rights and is enforceable by
law. It places the parties to the agreement with personal duties that the law defends and upholds.
The general law of contracts is predicated on the idea that by an agreement, the parties have
established legal rights and responsibilities that are strictly personal and are solely actionable
against the party in default. A contract is described under Section 2(h) of the Indian Contract Act
of 1872[2] as "An agreement enforceable by law." According to Section 2(e) of the Act, an
agreement is defined as "every promise and every set of promises, forming consideration for one
another." A contract is "an agreement creating and defining the obligations between two or more
parties," according to legal expert Sir John William Salmond. A proposal or offer made by one
party must be accepted by the other for a contract to be formed. This often entails negotiating, in
which the parties use their creative thinking to make an offer, receive approval, and then write a
contract. Contract law is limited to upholding voluntarily agreed-upon civil responsibilities. It
merely addresses a portion of all civic responsibilities. Numerous civil responsibilities, such as
those required by law or established by the acceptance of a trust, may give rise to legal action
under tort, trust, or statutory laws. They remain outside the purview of contracts, nevertheless.
The entire spectrum of agreements cannot be handled by contract law. Many agreements
continue to fall outside their scope since they must satisfy the conditions of a contract.
Additionally, certain agreements must be upheld because they need to be interpreted as
reasonable rather than simply meeting the formal elements of a contract, which include a
proposal, acceptance, consideration, etc. The legal framework that states that the parties' actions
must not have the intended legal effects excludes them. All agreements are considered contracts
if they are freely entered into by parties who can legally do so, have done so for legal
consideration, have a lawful purpose, and have not yet been expressly declared void.
BASIC DEFINITIONS
 ESSENTIALS OF A VALID CONTRACT

According to Section 2(h) and Section 10, the following are essential elements of a valid
contract:

1. Offer and Acceptance: For making a valid contract there must be an agreement, i.e.,
offer and its acceptance by other to whom it is made; the offer and acceptance must
satisfy the respective legal rules.
2. Intention to create legal relations: The purpose of establishing legal relations is not
listed as one of the requirements for a valid contract in Section 10 of the Act. Yet, this
English law premise is regarded as a required contractual component. But rather than
being subjective, the test of contractual intent is objective. It implies that the deciding
criteria are what a reasonable individual would believe under the circumstances. The
promisor is not immune from liability merely because he claims there was no intent to
create a legal obligation.
3. Contractual Capacity: Contracting authority rests with the parties. A person who is
underage or mentally incompetent cannot enter into a contract. A person prohibited from
contracting by any other legislation, such as an enemy alien or a prisoner, is likewise
unable to do so. A contract with a minor is null and invalid.
4. Lawful Consideration: The agreement must be backed up by something. Consideration
is the cost paid to purchase the other's promise. An agreement is invalid if there is no
consideration.
5. Free Consent: The parties must freely consent, meaning they must agree on the same
item in the same sense. Consent is free if no force, undue persuasion, fraud, deception, or
error is involved. If this is done, the party whose permission was improperly obtained
may choose to invalidate the contract.
6. Lawful Object: An agreement is illegal or unlawful if the consideration or the
agreement’s goal is illegal.
7. Not expressly declared void: The contract cannot have been specifically declared
invalid. Any agreement that cannot be guaranteed, formed as a wager, or that calls for
doing an impossibility is null and invalid.
8. Legal Formalities: Where the law requires, the agreement must be in writing or
registered.