This document discusses the requirements for a valid contract according to Indian contract law. It outlines that there must be an offer and acceptance between two parties for there to be a legally binding agreement. The offer must be clear, definite, and communicated to the offeree. For a valid acceptance, the acceptance must match the offer and terms, be unconditional, and communicated back to the offeror. Additional requirements for a contract to be enforceable include genuine consent, legality of terms, consideration, and capacity of the parties.
This document discusses the requirements for a valid contract according to Indian contract law. It outlines that there must be an offer and acceptance between two parties for there to be a legally binding agreement. The offer must be clear, definite, and communicated to the offeree. For a valid acceptance, the acceptance must match the offer and terms, be unconditional, and communicated back to the offeror. Additional requirements for a contract to be enforceable include genuine consent, legality of terms, consideration, and capacity of the parties.
This document discusses the requirements for a valid contract according to Indian contract law. It outlines that there must be an offer and acceptance between two parties for there to be a legally binding agreement. The offer must be clear, definite, and communicated to the offeree. For a valid acceptance, the acceptance must match the offer and terms, be unconditional, and communicated back to the offeror. Additional requirements for a contract to be enforceable include genuine consent, legality of terms, consideration, and capacity of the parties.
This document discusses the requirements for a valid contract according to Indian contract law. It outlines that there must be an offer and acceptance between two parties for there to be a legally binding agreement. The offer must be clear, definite, and communicated to the offeree. For a valid acceptance, the acceptance must match the offer and terms, be unconditional, and communicated back to the offeror. Additional requirements for a contract to be enforceable include genuine consent, legality of terms, consideration, and capacity of the parties.
According to section 2 (h) of the Indian Contract
Act, 1872 “An agreement enforceable by law is a contract REQUIREMENTS OF A LEGALLY ENFORCEABLE CONTRACT
Offer and acceptance: Contract must have an offeror
and an offeree. Genuine assent: agreement by both parties. Legality: terms of contract should be of a legal nature. Consideration: its, what is exchanged for promise. Capacity: must have legal ability to contract. Proper form: certain agreements must be in writing. OFFER & ACCEPTANCE Firsty, there must be an offer and its acceptance. Such offer and acceptance should create legal obligations between parties. This should result in a moral duty on the person who promises or offers to do something. Similarly this should also give a right to the promise to claim its fulfillment. Such duties and rights should be legal and not merely moral. OFFER + ACCEPTANCE = AGREEMENT
Offer – A promise to do (or not do) something
provided the offeree does (or does not do) something in return. Acceptance – Act or promise in response to an offer ELEMENTS OF THE OFFER Two Parties - There must be two parties Communication - The offer must be communicated to the offeree. If it is never communicated to the offeree, it cannot be accepted and no valid contract comes in to existence. Willingness - The offer must show willingness of the offeror. Intention of obtaining assent - offer must be made with a view to obtaining the assent of the offeree. Offer may be positive or negative - The offer may involve doing something or doing nothing- section 2 (o). The offer to do something is a positive offer or not to do something is a negative offer. LEGAL RULES AS TO OFFER 1) The ‘offer’ must be with intent to create a legal relationship. 2) The offer must be certain and definite 3) The offer must be express or implied 4) The offer must be distinguished from an invitation to offer. 5) The offer must be either specific or general. 6) The offer must be communicated to the person to whom it is made. Otherwise the offeree cannot accept the offer. 7) The offer must be made with a view to obtaining the consent of the offeree. 8) An offer can be conditional but there should be no term in the offer that noncompliance would amount to acceptance. CLASSIFICATION OF OFFER 1. Expressed - offer made by using words spoken or written 2. Implied - offer which could be understood by a conduct of parties, e.g. a Bus company carrying the passenger. 3. General - an offer made to public at large with or without any time limit. E.g. a person advertise for his missing boy. 4. Specific - an offer is made to a particular and specified person, e.g. one to ne offers of purchase of goods by company. 5. Cross - As per Section2(b), when a person to whom proposal (offer) is made signifies his assent, the proposal is said to be accepted. 6. Continuous Offer & Counter offer INVITATION TO OFFER
Display of goods by a shopkeeper in his
window, with prices marked on them , is not an offer to buy the goods at the marked prices. ‘A’ sees an article marked price rupees twenty in B’s shop, He offers B, Rs 20 for the article . B refuses to sell saying the article is not for sale. Here A can not force B to sell him the article at Rs 20. Marking of price of an article amounts to an invitation to offer and not an offer. LAPSE & REVOCATION OF OFFER 1) Time stated in the offer 2) Reasonable length of time 3) Rejection by the offeree. 4) Revocation by the offeror 5) Counteroffer 6) Death or insanity of either the offeror or offeree 7) Illegality or Destruction of the specific subject matter ACCEPTANCE
A proposal when the person to whom the
proposal is made signifies his assent thereto the proposal is said to be accepted. ACCEPTANCE & LEGAL RULE OF THE ACCEPTENCE Be made by the person(s) to whom offer is made Acceptance must be absolute and unqualified (unconditional) The acceptance must match the offer Acceptance must be communicated to the offeror: Acceptance must succeed the offer Rejected offers can be accepted only, if renewed THANK YOU