1. CONTRACT AND ITS KINDS

2. DEFINITION OF CONTRACT
 “Every agreement and promise
enforceable at law is a contract.”
Pollack
 “An agreement enforceable by law is a
contract.” Contract Act, 1872

3. 1.Agreement
 “Every promise and every set of promises,
forming the consideration for each other, is
an agreement.”
 “When a proposal accepted , becomes a
Promise.”
 A Promise come into existence, when one
party makes proposal and other party gives
Consent.

4. 2. Enforceability
 An agreements is enforceable if,
 it is recognized by the courts.
 Enforceability:
 The agreement must create legal
obligations.
 Between the parties.

5. Types of Agreements
AGREEMENT = OFFER + ACCEPTANCE
1. Social Agreements:
o Not enforceable
o Do not create legal obligations
o Between the parties.
2. Legal Agreements:
o Enforceable
o They create legal obligations
o Between the parties.

6. Essentials of a Valid Contract
1. Offer and Acceptance.
Lawful offer.
Lawful Acceptance.
Must satisfy the requirements of Contract Act.
2. Legal Obligation.
Parties must Create Legal Obligations.
Fails to Fulfill , liable for that.

7. 3. Free Consent.
 Parties Agreed upon
 Same thing in the same sense
 Not obtained by
Coercion , Undue influence , Fraud
Misrepresentation

8. 4. Not Expressly Declared
Void.
Expressly declared void by the law.
e.g. Restraint to Trade.

9. 5. Lawful Consideration.
Something given or obtained
Some benefit to the other party
Must be lawful
6. Capacity of Parties.
Competent to Contract
Age of Majority,
Sound Mind,
Not Disqualified

10. 7. Writing and Registration.
Oral and Written
Written Easy to prove in the Court.
Registration and Witnesses
8. Certainty of Terms.
Clear , Complete and Certain.
Other wise becomes Void.

11. 9. Possibility of Performance.
Capable of Being Performed.
Legally and Physically Performed.
10. Lawful Object.
Made for lawful Object.
Illegal, public policy against , injury , Fraud.

12. KINDS OF CONTRACT
 According to Enforceability.
VALID CONTRACT
Enforceable.
All Essentials Present.
Legal Obligation
Breach of Contract – Remedies

13. VOIDABLE CONTRACT

Enforceable at the option of the
Parties
 Consent of the Parties is Not
Free.
 Avoid - Void
 Confirm - Valid.

14. VOID CONTRACT.
 Void means Not Binding in Law.
 Not Void From the Beginning
 Subsequently becomes void due to
some Reasons.

15. UNENFORCEABLE
CONTRACT
 Cannot be Enforced
 Technical Defects
ILLEGAL AGREEMENT
Its Performance Forbidden by Law.
If Permitted it will defeats the Provisions
of Law.

16. VOID AGREEMENTS
Not Enforceable by law
Does not create legal obligations
Void ab initio
Except Free Consent Essentials
Missing
E.g. Minor and With out Consideration

17. Conclusion
 Contract, an agreement which is
enforceable by the law.
 Legal agreements are essential for the
commercial/Business transactions.
 Fulfilling the Essentials of valid Contract
is mandatory for the purpose of its
enforceability.