> Riba al-jahilya:- it’s also called pre-historic riba, where the lender asks the borrower whether he will settle the debt or Evolution of Contract Law * Hindu Period: Hindu law is the result of the compilation of numerous customs and works of Smritikaras, who interpreted and analyzed Vedas to develop the various aspect of Hindu law. > Manusmriti: © A contract entered by a minor, or intoxicated person or an old ‘man or the cripple is not a valid contract. ‘© any contract dealing with mortgage, sale, fraudulent gift or any contract which is motivated with fraudulent aspect shall be declared null and void. ‘© consent given for any transaction under the pressure of threat or coercion shall also be declared void. Contd.. * Narada Smriti: An infant is considered is someone who is between in the stage of an embryo to up to 8 years. After that, from 8 years to 16 years the child is considered as boyhood and after 16 years the person is competent to enter into a contract. + Katyanana: When a contract has been entered and earnest money has been taken in that respect and when that person is not able to perform that contract then the King should make the other party pay double the eamest money as a form of punishment. Evolution of Contract Law + British Period: > English Law was applied in the Presidency Towns of Madras, Bombay, and Calcutta under the Charter of 1726 issued by King George I to the East India Company > Regulating Act of 1773, the Supreme Court of Judicature had the power to exercise jurisdiction over civil, criminal, admiralty cases. > Settlement Act of 1781 as passed by the Britishers provided that matters concerning the inheritance, succession, and contracts between the parties in the case of Hindu and MuslimsKoman Period: types of the contract governing contractual relations were Ivsivrandum Spon: Nexum Dotis dictio Basic principle of contract law in Roman Period: + Intentions of the parties have to be communicated to both the parties unequivocally + Unilateral principle of contract law, as per which promisor was Evolution of Contract Law + Mohammedan Period: > Mohammedan followed Islamic laws which are cor the divine origin. > The Basic Principle ‘© There should be a presence of two parties, one should make the offer and other should accept it and ‘© Both must agree to the same thing in the same sense and ‘© The object of the contract should be to produce a legally valid result Contd.. * The unlawful transactions were considered void from the beginning under Muslim laws. These Include > Riba AL-Fadl:— in this case, it's a contract which produced unlawful excess in exchange of counter values in. a contemporaneous transaction, > Riba ALNasi’a:- which means a contract which produced unlawful gain without completing the exchange of counter values, > Riba al-jahilya:- it’s also called pre-historic riba, where the lender asks the borrower whether he will settle the debt or Evolution of Contract Law * Hindu Period: Hindu law is the result of the compilation of numerous customs and works of Smritikaras, who interpreted and analrrad Vadae ta davalan the variane acnact nf Hinds Taw[comparison Chart Masing When spopoaisacopdbytheparon onda Wha an amt ‘und ih ese contin irae ‘close yam comer semen rout, Tah Olle aga Ageeeat sod Enecabay Difcedin Seon (0) Secon) Invriing Noto Normal wien and ated Laichiaion Daeseteransleobigaton casein Onwincher —Ereyaguementnadnatbea contrat Acoma spuenent sore ie — Difference Between Contract and Agreement Promises and commitments forming consideration for the parties to the same consent is known as an agreement. The agreement, which is legally enforceable is known as a contract. * The agreement is defined in section 2 (e) while a Contract is defined in section 2 (h) of the Indian Contract Act, 1872. + The major elements of an agreement is the offer and its acceptance by the same person to whom it is made, for adequate consideration. Conversely, the major elements of an agreement are agreement and its enforceability by law. + Every agreement is not a contract, but every contract is an agreement. Need or Reason for Contract Law + Contracts provide a description of responsibilities * Contracts bind parties to their duties * Contracts can establish a time frame for duties + Contracts can secure payment + Contracts provide recourse when the relationship faultersIngredients of Agreement Parties: There need to be two or more parties to form an agreement. + Offer/ Proposal: When a person signifies to another his willingness of doing or omitting to do something with a view to obtain other’s assent. [Section 2(a)] + Acceptance: When the person to whom the proposal is made signifies his assent for the same thing in the same sense as proposed by the offeror. [Seetion 2(b)] + Promise: When a proposal is accepted, it becomes a promise. [Section 2(b)] + Consideration: It is the nrice_for_the_nromise_It is the retum Contract * Section 2 (h) of the Indian Contract Act 1872, which states that: “An agreement enforceable by law is a contract”. Agreement and Contract + Offer + Acceptance= Agreement + Agreement / Accepted Promise +Enforceable by Law= ContractOffer * Section 2(a) defines the term offer or proposal as, “When one party signifies to another his willingness to do or to abstain from doing anything, to obtain the assent of that other to such act or abstinence, he is said to propose.” * Aperson making the proposal is known as the “Offeror” and the person to whom the proposal is made is known as the “Offeree”. The terminology of the proposal has been defined under Section 2 (c) of the Indian Contract Act 1872. Acceptance and Promise * Section 2 (b) “When the person to whom the proposal is made signifies his assent thereto, the offer is said to be accepted.” + Section 2 (b) of the Indian Contract Act 1872 states that: “A proposal, when accepted, becomes a promise”. Agreement JAn ‘Agreement’ as defined under Section 2 (¢) of the Indian Contract Act 1872 is as follows: “Every promise and every set of promises forming the consideration for each other”. + Agreement = Promise or set of promises (offer + acceptance) + Consideration (for all the parties