CSEET Legal Aptitude Classes

CSEET Legal Aptitude Classes for Nov 2021 – Law related to Contracts – Class 1​

CSEET Legal Aptitude Classes for Nov 2021 - Law related to Contracts - Class 1

Part of Indian Contract Act covered in this Class

In this Free CSEET Video Classes, teacher has covered following topics:

Applicability of Contract Act, 1872
Section 1 of Indian Contract Act, 1872, deals with the short title, extent and commencement.

According to Section 1, Indian Contract Act, 1872 extends to the whole of India; and it shall come into force on the first day of September, 1872.

What is a contract?
According to Section 2(h) of Indian Contract Act, 1872, contract is an agreement enforceable by law.

Contract = Agreement + Legal enforceability

Legal enforceability = Intention of parties to create legal relations + Existence in the eyes of law

Legal relations = Legal rights and Legal obligations

Note:
In case of commercial transactions it is deemed that parties to the contract always have intention to create legal relations but parties may specifically exclude their intention to create legal relations by making appropriate provisions in the agreement.

What is an agreement?
According to Section 2(e) of Indian Contract Act, 1872, every promise and every set of promises, forming the consideration for each other, is an agreement.

Agreement = Promise + Consideration

Characteristics of an agreement

  1. Plurality of persons (atleast 2 persons are involved)
  2. Consensus ad idem (matching of minds on the same subject in the same sense at the same time)

Following agreements are not contract

  • Social Agreements and domestic agreements
  • Agreements without intention to create legal relations
  • Agreements without consideration

Agreement is the genus of which contract is the specie, therefore, all contracts are agreements but all agreements are not contracts.

What is Promise?
According to Section 2(b) of the Indian Contract Act “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.

Promise = Offer + Acceptance

ESSENTIAL ELEMENTS OF A VALID CONTRACT

According to Section 10 of Indian Contract Act, 1872, all agreements are contracts if they are made

  • by the free consent
    • of parties competent to contract,
      • for a lawful consideration and
        • with a lawful object, and
          • are not hereby expressly declared to be void.

Thus according to definition of contract, agreement and promise and section 10 of Indian Contract Act, 1872, following are the essential elements of a valid contract are:

  • An offer or proposal by one party and acceptance of that offer by another party.
  • Lawful consideration
  • Intention of parties to create legal relations
  • The parties to the contract shall be legally capable of creating a contract
  • Consent of parties shall be genuine and free
  • The object of the contract shall be lawful and is not opposed to public policy
  • Agreement shall not expressly declared to be void under any law
  • Agreement shall be capable of being performed.

You are studying this topic at Free CSEET Video Class for Nov 2021 Exams – Legal Aptitude Class 2 – Contract Act Class 2