Corporate Legal Environment Law

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What is Law……………..

Law is a Body of Rules………..

Purpose To govern the society…..
They are made by Governing authorities..

But these Rules can be implemented by

Judicial authorities………only.

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Law of Contract

pooja sharma 3
 Meaning
The law of contracts is the most important branch
of the Business law or commercial laws. Even it is
the base of business laws.

It have vital significance not only for the business

world, but also for every one of us.

…..As we all enters into contracts of one kind or

the other in all walks of our routine life.

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 Meaning Continues…

For example…….When one buys or borrows the

essentials as well as luxuries of life, in the form of
goods or services from early morning to late evening
during the life period, one naturally enters into
contracts.

Bread, butter, home-appliances, clothes, books,

stationery, journey-tickets etc. are some of the goods
and services we buy or borrow in our daily life and for
that purposes we enter into different kinds of
contracts.

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 Meaning Continues…

In business at every moment, there may be a

transaction that gives rise to a contract.

The law of contracts is fundamental to the existence

of the business world.

Without this total business world as well as entire

economic system may collapse.

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 Legal Meaning
A contract is an Agreement between two or
more persons, creating an obligation upon
them to fulfill or not to fulfill some duties laid
down specifically in the agreement.

This agreement creates a legal relationship

of rights and duties on the parties and if
these obligations in the agreement are not
fulfilled then specific action could be taken
by courts on the defaulter parties.

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Law of Contract Continues….

In other words contract is a legally binding agreement

between two or more person and parties for a particular
purpose.

It is an exchange or promise between parties to do or

absent from doing an act, which is an enforceable by
the court of law.
CONTRACT:-
AGREEMENT + ENFORCEABILITY BY LAW

So it is true that Law of Contract is the extension of

agreement.

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 Definition - Law of Contract

1. “Every agreement and promise enforceable by Law

is a Contract”.
Sir Fredrick Pollock

2. “An agreement which create and define obligations

between the parties is Law of Contract.”

Samoans

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 Definition Continues….

3. “A contract is an agreement enforceable at law

made between two or more persons by whom
rights are acquired by one or more to acts or
absent on the part of the other or others”
Sir Pollock

4. “A contract is deliberate engagement between

competent parties, upon a legal consideration to
do or to abstain from doing some act.”

Justice Storey

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 Conclusion:-

“Every Law of Contract are Agreement,

but every Agreement are not

Law of Contract.”

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 What is Agreement

It is the combinations of three flowing elements:-

Proposal + Acceptance + Consideration

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Example: -

“A is ready to buy a Cell phone from B with a

price of 20,000 Rs, and B is also agree for this
deal.

So it is an agreement first than due

enforceability by law it will treat as law of
contract.”

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 Essentials Elements of a Valid Contract

6. Intention to legal
1. Agreement. relations.

2. Enforceability by law. 7. Free consent.

3. At least 2 parties. 8. Contractual

capacity.
4. Proposal. 9. Consideration.

5. Acceptance. 10. Lawful objects.

11. Possibility of
performance.

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