leagal aspects of bussiness ppt

1. INDIAN CONTRACT
ACT-1872

2. HISTORY OF INDIAN CONTRACT
ACT - 1872
Enforced w.e.f. September 1, 1872.
Applicable to whole of INDIA except
J&K
Concerned with rights in PERSONAM
As distinguished from rights in REM

3. A CONTRACT is an agreement creating and defining
obligations between the parties
According to HALSBURY, it is, “an agreement between two
or more persons which is intended to be enforceable at law &
is constituted by the acceptance by one party of an offer
made to him by the other party to do or to abstain from doing
some act.”

4. COMPONENTS OF CONTRACT
An Agreement
It involves proposal or offer by one party and acceptance of the
same by the other party.
AGREEMENT = OFFER + ACCEPTANCE
Enforceable at
law
An agreement to become a contract must give rise to legal
obligations. It must create legal relations and not merely social
or domestic relations.
Leading Case: BALFOUR V. BALFOUR
CONTRACT = AGREEMENT+ENFORCEABILITY AT LAW

5. ELEMENTS OF A VALID CONTRACT
 Offer and acceptance
 Intention to create legal relationship
 Lawful consideration –QUID PRO-QUO
 Capacity of parties (Sec. 11)
 Minor
 Persons of unsound mind
 Persons disqualified by law to which they are subject
Free consent (Sec. 13)
 Coercion Undue Influence
 Fraud Misrepresentation
 Mistake
Lawful object
 if forbidden by law
 of such nature that if permitted it would defeat the provisions of
any law

6. Elements of a valid
contract
 fraudulent
 involves injury to person or property
 Court regards it immoral or opposed to public policy
Certainity of meaning
Possibility of performance
Not declared to be void or illegal
Legal formalities

7. CLASSIFICATION OF CONTRACTS
ENFORCEABILITY FORMATION PERFORMANCE
VALID CONTRACTS
EXPRESS CONTRACTS
VOID CONTRACT IMPLIED CONTRACTS EXECUTORY CONTRACTS
VOID AGREEMENTS QUASI CONTRACTS EXECUTED CONTRACTS
VOIDABLE CONTRACTS
UNFORCEABLE CONTRACTS
ILLEGAL CONTRACTS

8. THANK YOU
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