Contract Act | Beginners Note

Let’s think when we buy something or make any business deal what do we do?
We meet the other party/s, talk about the deal/product, offer a rate (Amount of
money) for that deal / Product and then if the other party agrees and confirm
about the deal. the deal is done; simply this is a contract. Now the law discuss
various aspects and consequences of this contract, such as, what if that
person/party violate the deal? What is it if the deal is for selling illegal arms? will
it presentable in the court and what would be the consequence.

Before we start refereeing about the legal procedure please go to the following
link and open it in another tab:  

THE CONTRACT ACT, 1872 

As we have seen in the first para to be a contract there are certain procedure that
we follow, these are elements of a contract, we will discuss these elements from
the bottom-up approach to easily understand what is a contract but before that
let’s have the legal definition of contract according to the Contract Act 1872.

Definition of contract
An agreement enforceable by law is a contract.

Now that seems quite ambiguous, right? Therefore we will understand it step by
step with a visual presentation.

 Contract —- > Agreement + Enforceable By law

 Agreement —- > Promise + Consideration
 Promise —- > Proposal  +. Acceptance
After the definition of contract, the question comes what is Agreement or what is
meant by the term “Enforceable by law”?

Let’s break it down into small components.

Proposal and Acceptance
Generally, when we buy something we ask for the price or we offer a price for
that good. let’s consider you want to buy a book. You proposed the seller to give
you that book at 100 takas and the seller happily accepted your price. Here your
offer is a proposal and the positive response by the seller is acceptance. The same
is described under section 2(a) and 2(b) of The Contract Act 1872.
Proposal
2(a). When one person signifies to another his willingness to do or to abstain from
doing anything, with a view to obtaining the assent of that other to such act or
abstinence, he is said to make a proposal:
Acceptance
2(b). 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:
Now, what is a Promise? A proposal, when accepted, becomes a promise, as
articulated under section 2(b) of the Act. That means when is offer is presented
and before the other party and the other party accepts it becomes a promise. The
person who presents the offer is named as promisor and the person accepts the
promise is named as promisee. as said in 2(c) of the act
Having “promise” in our side we have understood a part of a contract (Valid), as
we can see in our directional diagram above we need another element called
“Consideration” to be a contract.
Consideration
Under section 2(d) of the act  it provides:
When, at the desire of the promisor, the promisee or any other person has done
or abstained from doing, or does or abstains from doing, or promises to do or to
abstain from doing, something, such act or abstinence or promise is called a
consideration for the promise:

Recalling our previous example we can remember that the promisor offered 100
taka for the book and that is a consideration for that contract. Let’s make it more
simple, When Rahim And Karim make a deal that Rahim shall provide Karim 100
apple and Karim for the same deal give Rahim a Hilsha fish, here both of them
considered something [100 apples and a Hilsha fish] for this contract. Here are
some points that can drown form that definition of consideration.

1. That “something” could be any product or money or any other task or actor
work that has some value, even it could be abstaining from doing something,
for example; Rahim may abstain from building a high wall due to a contract
with Karim.
2. It must be done at the desire of the promisor, that means that something
must be a desire of the promisor and that desire would be understood via
concent of promisor.
3. It (Consideration) may be in three forms. a. has been done or b. is being
done c. promised to be done. that means the consideration can be past,
present or future.
Agreement
Now, when the elements of Proposal and Consideration is there both of this
combined as an Agreement as said under section 2(e); Every promise and every
set of promises forming the consideration for each other is an Agreement.
So, now we have all the elements of a contract except one and that is that the
contract must be enforceable by law. let’s make it simple. Can we come to an
agreement to sell drugs? would it be considered as a contract? The answer is yes
that would be an agreement but would not be a contract as selling drugs is
prohibited and illegal by Law. So that agreement would not get the status of the
contract nor the interest (benefits) of contract can be enjoyed by the promisor or
promisee. They would not present it before the court or get damages etc.

Enforceable by law
Here are a few points that can make us bit more clear what is not enforceable by
law
1. It must be legal or not barred by Law; u/s 57
2. An agreement must be made by a minor; both parties must be major, u/s
25
3. An agreement made in restraint of a marriage or trade; u/s 26 & 27
4. An Agreement made without consideration
5. An Agreement of wager; u/s 30
 6. An Agreement  contingent on impossible events; u/s 36
7. An Agreement to an impossible act; u/s 56
Therefore, after meeting all these elements and criteria an agreement can be
called a contract.