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Business Laws: Shumaila Chandni

This document provides an overview of business laws and the Indian Contract Act of 1872. It summarizes the key aspects of contract law in India, including the definition of a contract, essential elements, and classification of contracts. The summary focuses on the nature of contract law in India, how the Indian Contract Act deals with general contract principles and some special contracts, and defines key terms like agreement, promise, consensus ad idem, and obligation. It also lists the essential elements required for a valid contract and notes some contracts that are not covered by the Act. The summary is intended to concisely highlight the most important topics and concepts discussed in the document.

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Shumaila Chandni
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71 views14 pages

Business Laws: Shumaila Chandni

This document provides an overview of business laws and the Indian Contract Act of 1872. It summarizes the key aspects of contract law in India, including the definition of a contract, essential elements, and classification of contracts. The summary focuses on the nature of contract law in India, how the Indian Contract Act deals with general contract principles and some special contracts, and defines key terms like agreement, promise, consensus ad idem, and obligation. It also lists the essential elements required for a valid contract and notes some contracts that are not covered by the Act. The summary is intended to concisely highlight the most important topics and concepts discussed in the document.

Uploaded by

Shumaila Chandni
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 PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 14

BUSINESS LAWS

Shumaila Chandni
Assistant Professor

Quantum School of Business,


Roorkee

Unit - 1
The Indian Contract
Nature
Contract
Act,of1872

Special Contracts

Classification
Offer & Acceptance
Capacity of parties to
contract
Indemnity
Free Consent
Guarantee
Consideration
Bailment & Pledge
Legality of object
Agency
Agreement declared
void
Performance of contract
Discharge of Contract
Remedies for breach of
contract
Quantum Global Campus

Law of Contract
Object:
Branch of law which determines the
circumstances in which promises
made by the parties to a contract
shall
be legally
binding
them. is
Purpose
of the
law ofon
contract
to ensure the realization of
reasonable expectation of the
parties who enter into a
contract.
Quantum Global Campus

The Indian Contract Act,


1872
Deals with
1. The general principles of the law of contract
Different stages in the formation of a contract
Its essential elements
Its performance or breach
Remedies for breach of contract

2. Some special contracts only


Indemnity & guarantee
Bailment & pledge
Agency

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Nature of the Law of


Contract
The parties to a contract, in a sense,
make the law for themselves.
So long as they do not infringe some
legal prohibition, they can make what
rules they like in respect of the
subject-matter of their agreement,
and the law will give effect to their
decisions.
Quantum Global Campus

The Act is not exhaustive


Some of the contracts not dealt with
by the Act:
Partnership
Sale of goods
Negotiable instruments
Insurance, etc.

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Not the whole law of agreements


nor the whole law of obligations
There are several agreements which do
not give rise to legal obligations.
Also
There are certain obligations which do not
necessarily spring from an agreement.
Torts or Civil wrongs
Quasi-contracts
Judgments of Courts.

Law of those agreements which


create obligations, and those
obligations which have their sources
Quantum
Global Campus
in
agreements.

Creates jus in personam


not jus in rem

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Definition of Contract
Sec. 2(h) defines contract as an
agreement
enforceable
by law.
Enforceability
by Law

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Agreement & Promise


Promise
Sec. 2(b) defines When the person to whom
the proposal is made signifies his assent
thereto, the proposal is said to be accepted. A
proposal, when accepted, becomes a promise
Agreement
Sec. 2(e) defines every promise and every
set of promises, forming consideration for each
other
Agreement = Offer + Acceptance
Quantum Global Campus

10

Consensus ad idem
The parties to the agreement must
have agreed about the subjectmatter of the agreement in the same
sense and at the same time.
Unless there is consensus ad idem,
there can be no contract.
Hence, it is usual to employ the
language of offer and acceptance.
Quantum Global Campus

11

Obligation
A legal tie which imposes upon a
definite person or persons the
necessity of doing or abstaining from
doing a definite act or acts.
May relate to:
Social Matters
All Matters
contracts are agreements
Legal

but
all agreements are not
necessarily contracts.
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12

Essential Elements of a Valid


Contract
1.
2.
3.
4.
5.
6.
7.
8.
9.

Offer and Acceptance


Intention to create legal relationship
Lawful consideration
Capacity of parties-competency
Free and genuine consent
Lawful object
Agreement not declared void
Certainty and possibility of performance
Legal formalities
Quantum Global Campus

13

Classification of
Contracts

Quantum Global Campus

14

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