Scribd
Upload
25 views3 pages

Indian Contract Act 1872 Detailed Notes

The Indian Contract Act, 1872 defines a contract as an agreement enforceable by law, requiring essential elements like offer, acceptance, and legal intention. Various case laws illustrate principles such as the distinction between social agreements and enforceable contracts, the necessity of clear acceptance, and the validity of contracts even when consideration comes from a third party. The act also outlines exceptions for contracts without consideration and specifies the capacity required to enter into a contract.

Uploaded by

delciyaantony
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
25 views3 pages

Indian Contract Act 1872 Detailed Notes

The Indian Contract Act, 1872 defines a contract as an agreement enforceable by law, requiring essential elements like offer, acceptance, and legal intention. Various case laws illustrate principles such as the distinction between social agreements and enforceable contracts, the necessity of clear acceptance, and the validity of contracts even when consideration comes from a third party. The act also outlines exceptions for contracts without consideration and specifies the capacity required to enter into a contract.

Uploaded by

delciyaantony
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

Indian Contract Act, 1872 - Detailed

Notes with Case Laws


Definition of Contract [Section 2(h)]
A contract is an agreement enforceable by law.
Agreement [Section 2(e)]: Every promise and every set of promises forming the
consideration for each other.
Promise [Section 2(b)]: When the person to whom the proposal is made signifies his assent,
the proposal becomes a promise.
Therefore, Contract = Agreement + Enforceability by Law.

Case Law:
Heading: Balfour v. Balfour (1919)
Body: Husband promised to send money to wife while abroad. Dispute arose when he failed
to do so.
Court Order: Held that social/domestic agreements are not contracts as there was no intent
to create legal obligation.

Essential Elements of a Valid Contract [Section 10]


- Offer and Acceptance
- Intention to Create Legal Relationship
- Lawful Consideration
- Capacity to Contract
- Free Consent
- Lawful Object
- Certainty and Possibility of Performance
- Not Declared Void

Case Law:
Heading: Harvey v. Facey (1893)
Body: Negotiation for sale of land without clear acceptance.
Court Order: No concluded contract as essential element of acceptance was missing.

Classification of Contracts
On Basis of Validity:
- Valid, Void, Voidable, Illegal, Unenforceable
On Basis of Formation:
- Express, Implied, Quasi-contract
On Basis of Performance:
- Executed, Executory, Unilateral, Bilateral

Case Law:
Heading: State of Gujarat v. Ramanlal Keshavlal (1983)
Body: Government awarded work without a formal contract.
Court Order: A quasi-contract can arise in absence of formal agreement.

Offer and Acceptance [Sections 2(a) & 2(b)]


Offer: Proposal made to obtain the assent of another.
Acceptance: Assent to the proposal, which creates binding promise.

Case Law:
Heading: Carlill v. Carbolic Smoke Ball Co. (1893)
Body: General offer was accepted by performance.
Court Order: Acceptance by conduct binds the offeror.

Communication of Offer, Acceptance and Revocation [Section 4 & 5]


Communication of Offer: Complete when it comes to knowledge of offeree.
Acceptance: Complete as against proposer when posted; against acceptor when received.
Revocation: Must occur before acceptance is complete.

Case Law:
Heading: Henthorn v. Fraser (1892)
Body: Postal acceptance was sent before revocation reached.
Court Order: Contract formed as acceptance was posted before revocation.

Consideration [Section 2(d)]


Something in return; past, present or future.
Must move at desire of promisor.

Case Law:
Heading: Chinnaya v. Ramayya (1882)
Body: Consideration moved from third party.
Court Order: Valid under Indian law even if consideration moves from non-promisee.

Contract Without Consideration [Section 25]


Exceptions:
- Natural love and affection (in writing and registered)
- Past voluntary services
- Time-barred debt
- Completed gift

Case Law:
Heading: Rajlukhy Dabee v. Bhootnath Mukherjee (1900)
Body: Agreement based on love and affection not enforceable without proper
documentation.
Court Order: Held invalid.

Capacity to Contract [Section 11]


A person must be:
- Major (above 18 years)
- Of sound mind
- Not disqualified by law

Case Law:
Heading: Mohori Bibee v. Dharmodas Ghose (1903)
Body: Minor mortgaged property to a moneylender.
Court Order: Contract with minor is void ab initio.

You might also like