Law

Short – Cut Trick (Memory Technique)

Sec. 2 (n): Valid Contract – The word “contract” Constitutes of 8 Letters & 8th Letter of
alphabetical order is “h”.

Essential of Valid Contract:

I – Impossibility (should not be impossible to perform)
Very – Void (should not be declared void).
Carefully – Consideration (Lawful consideration).
Observed – Object (Lawful object).
Chatters – Competent to contract
And – Agreement
Laggards – Legal obligation (intention).
Fail – Free consent
CA – Consensus – ad – idem.
Course – Certain (the terms should be certain).

Essentials of Valid offer:

Intelligent – Invitation to offer is different form offer.
Students – Special terms. *
Never – Non-Compliance. *
Chat – Communication
And – Assent (with a view to gain assent)
Talk – Terms of contract (mere discussion of terms is not offer).
During – Definite & clear
Lecture – Legal obligation*
Session – Statement of intention*

Brief Explanation:
• Special terms – Any special terms to the contract should be communicated at or before
the time of the contract.
• Non-compliance – Any term of the offer, the non-compliance of which amounts to
acceptance does not constitute a valid offer.
• Legal obligation – The acceptance of offer should give rise to legal obligation.
• Statement of intention – mere statement of intention does not amount to a valid offer.

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Lapse of offer (Sec. 6) “Lapses” six Letter word:

Lapse – Lapse of time
Of – offree’s rejection
Concentration – Communication of revocation (by offerer).
Proves – Prescribed manner.
Fatal – failure to fulfil condition precedent.
In – Incapacity.
CA – Change in Law
Course – Counter offer.

Essential of Valid acceptance:

Study – Silence does not amount to acceptance.
Terms – To whom (the offeror).
Conditions – Communication
Before – By whom (the offeree)
Accepting – Acceptance with a view fulfill terms of offer.
Unusual – Unqualified
Life – Lapse of offer (before offer Lapses).
Risking – Reasonable time.
Proposal – Prescribed manner.

Consideration Sec. 2 (d). “Cash” is the most common form of consideration 4th Letter is “d”.

Essentials of Consideration:
All – Any person (anyone can furnish Consideration).
Accountants – Act or abstinence
Do – Desire of the promisor.
Change – Consideration cannot be fulfillment of existing obligations.
Very – Value in the eyes of Law.
Reasonably – Real & not illusory.
Less – Lawful
Price – Past, Present or future.

Privity of Contract:
H – Holder in due course of negotiable instrument.
A – Agreements relating to Land.

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F – Family arrangement.
T – Trust or change.
A – Acknowledgement of payment.
A – Act of an agent.

Sec 25 “No consideration, No Contract”. 25 letters.

Agreements with minor.:

Very – Void (agreement with minor are Void-ab-initio).
Few – Fraudulent representation of age.
People – Partnership (minor cannot start a partnership firm).
Can – Company (cannot buy shares of company).
Get – Guardian is not Liable for acts of minor.
Their – Tort (minor can be made liable under tort).
Property – property of minor is only liable for necessaries.
Back – Beneficial contracts can be enforced.
After – Agent (minor can become an agent).
Entering – Estopple (minor cannot be stopped from pleading minority)
Into – Insolvent (minor cannot be declared insolvent).
Risky – Ratification (Agreement during minority cannot be ratified).
Agreements with – Agreements Jointly entered with major.
Minor – Minor can be “Drawer” or “Payee” on BOE & “Promisee” on P.N.

Persons Disqualified by Law.:

All – Alien enemy.
Indian – Insolvent.
Friends – Foreign sovereigns & ambassadors
Can – convicts
Contract – Companies & corporations.

Free Consent:

Coercion – Sec 15 (remember Letters of Indian Penal code, It’s 15 Letters).

Essentials of coercion.
All – Any person (coercion can move from any to any person).
Dacoits – Detaining or threatening to detain unlawfully property of the other.

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Severely – Suicide or threat to commit suicide or attempted suicide amounts to

coercion.
Intimidate – Indian penal code (acts forbidden).
Individuals – Intention to induce the other party into the contract.

Fraud – Sec 17

Essentials of Fraud:
Famous – False statement of facts made with knowledge of its falsity.
Politicians – Party to the contract. (By a party to contract).
Are – Actually deceived (The party defrauded should be actually deceived).
Large – Loss (occurrence of loss is necessary to prove fraud).
Ingenious – Intention to deceive the other party.
Fraudsters – Facts (fraud is with respect to only material facts and not opinions).

Essentials of Misrepresentations:
Outspoken – Object of misrepresentation is to induce the other party to contract (Not
DECEIVE).
Persons – Party to the contract.
Are – Actually acted.
Frequently – False statement of facts made by a person believing it to be true.
Misrepresented – Material facts.

Heads of public policy:

Every – Enemy (alien enemy)
Time – Trafficking in public offices.
CA – Creating monopolies.
Makes – Marriage brokerage contract.
A – Agreements in restraint of parental rights.
Contract – Committing crimes.
I – Interference with course of Justice.
Make – Maintenance & Champerty.
Sure – Stifling Prosecution.
It’s not (filler).
Restricted – Restraint of Personal Liberty.

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Void Agreements:
Sec 11 – Agreements by parties’ incompetent to contract.
Sec 20 – Agreements under mutual mistake of fact.
Sec 23 – Agreements with unlawful object or Consideration.
Sec 24 – Agreements with partially unlawful Consideration.
Sec 25 – No consideration, No contract.
Sec 26 – Agreements in restraint of marriage.
Sec 27 – Agreements in restraint of trade.
Sec 28 – Agreements in restraint of legal proceedings.
Sec 29 – Agreements the meaning of with is uncertain.
Sec 30 – Agreements by way of wager.
Sec 36 – Agreement contingent on impossible events.
Sec 56 (i) – Agreements with initial impossibility.

Essentials of wager:
It’s – Intention to bet
Usually – Uncertain (based on uncertain event).
Cash – Chance (Mutual)
Neither – No control over the event.
Cheque – Conditional (dependent on outcome).
Nor – No interest in event apart from gain or loss.
Promissory Note – Payment of money or money’s worth.

Essentials of Valid tender of performance:

Inspiring – Inspection (opportunity to inspect goods).
Unconditional – Unconditional (the tender should be unconditional).
Efforts – Entire obligation (for entire obligation).
Can – Contractual capacity.
Prove – Promisee (tender should be made to promisee).
To be – Time & place (should be at proper time & place).
Life changing – Legal tender (currency should be legal tender).

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Discharge of Contract

Inform After After

Impossibility Agreement Breach

Please Others The

Performance Operation of Law Time

Please Inform Others After the Breakup.

Situations when supervening Impossibility arises.

Contractual – Change in Law.

Failure – Failure of ultimate purpose.
Was – War.
Due to – Death or personal incapacity.
Destruction – Destruction of goods.

Circumstances when supervening Impossibility does not arise –

Small – Strike, Lockouts & civil disturbances.
Difficulties – Default by third party.
Do not – Difficulty in performance.
Fail – Failure of one of the purpose.
Contract – Commercial impossibility.

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