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By Dr. Reena Mehta

Business Law- Contract Act 1872

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3 million cases are pending in India's 21 high courts

263 million cases are pending in su!ordinate courtsacross the countr"

#uarter million under-trials languishing in $ails across thecountr" 2%&6 ha(e !een in $ail )or more than )i(e "ears

*+ome ministr"'s department o) $ustice% under a ,ight to In)ormation Act


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7&.%21. are criminal

32 million are ci(ilcases

/ 0u$arat 3 million/ est Bengal 1

million

/ arnataa 1&6 million

/ ,a$asthan 1&4 million

/ 5rissa 1 million/ Andhra radesh

&&&%&&&

/ Bihar 12 million

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,ules

n)orced !" the state

he state to en)orce law should !e so(ereign state

It recei(es due recognitionIt attempts to recei(e some sort o) uni)ormit" and securit"

in its application.


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roposalAcceptanceConsiderationCapacities o) arties to Contract

9ree Consenthe agreement should not !e (oidriting : registrationLegal ,elationship

Certaint"ossi!ilit" o) er)ormancen)orcea!le !" law


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riting and registration

Legal relationship

Certaint"

ossi!ilit" o) per)ormancen)orced !" law


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• All contracts are

agreements but allagreements are notcontracts

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Agreement

(er" promise and set o) promise% )orming

consideration )or each other is an agreement.

Contract

An agreement en)orcea!le !" law is contract


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;oid contract

;oida!le contract

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Certain relations !etween the parties resem!le thosecreated !" contract Law re?uires a person who recei(esthe !ene)it to pa" or compensate the person gi(ing the

!ene)it% e(en though he recei(es !ene)its without the

contract here is no contract in)act !ut it is created !"law% it is ?uasi contract


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It is a contract to do or not to do something% is some e(ent%collateral to such contract% does or does not happen


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Sec 2(a)

hen one person signi)ies to another his willingness to door a!stain )rom doing an"thing% with a (iew to o!tainingthe assent o) that other to such act or a!stinence% he is saidto mae a proposal


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>ec 2 *B

hen the person to whom the proposal is madesigni)ies his assent thereto% the proposal is said to !eaccepted A proposal when accepted% !ecomes a

promise


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>ec 2*d

hen at the desire o) promisor% the promisee or an" otherhas done or a!stained )rom doing%or does or a!stains )romdoing% or promises to do or a!stain )rom doing somethingsuch act or a!stinence or promise is called a Consideration)or the promise


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Be"ond e

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A mere statement o) intention does not constitute a !inding promise e(en though a person to whom it ismade acts upon it

+ar(e" ( 9ace"

he words used must appl" to de)inite persons tocreate legal relations

he term o) o))er must !e certain and unam!iguous

An o))er can !e e

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An o))er must !e communicated to an o))eree A person cannotaccept an o))er unless he nows o) the ehula ( 0auri @atta

he person maing an o))er should intend to !e !ound !" it assoon as it is accepted

5))er can !e conditional% !ut the conditions must !e

communicated clearl"Counter 5))er 5))er and In(itation to o))er


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Be a!solute and un?uali)ied eele ( eritt

It should !e accepted in some usual and reasona!le

mannerental acceptance is not su))icient in law

Acceptance must !e communicated to the o))erer

Acceptance o) the proposal


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Acceptance o) the proposal need not alwa"s !ee

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It must mo(e at the desire o) the promisor

It ma" mo(e )rom promisee or an" other person- strangerto the contract

Chinna"a ( ,ama"aIt can !e past% present% )uture

Consideration need not !e ade?uate


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It ma" !e an act o) doing or a!stain )rom doingsomething

It should !e real and not illusor"

It need not !e unlaw)ul% illegal% immoral and

opposed to pu!lic polic"

er)ormance o) e

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Agreement made on account o) natural lo(e and a))ection

romise to compensate )or past (oluntar" ser(ices

romise to pa" time !arred de!t


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Minor

ohori!e!ee; @haramdas 0hosestoppel

romisee or trans)ereeAgenc"artnership


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Contracts !" Lunatic

Contract !" @runards

Contract !" arda ishin omen

Contract !" arried omenContract !" Corporation

Contract !" Insol(ent


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CoercionIt is committing % or threatening to commit% an"act )or!idden !" the Indian penal code % or theunlaw)ul detaining% or threatening to detain an" propert"% to the pre$udice o) an" person% with theintention o) causing an" person to enter into anagreement

Amira$u ( >eshmaura!i Benner$i ( Basude( uher$ee


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>ec 16 *1

A contract is said to !e in)luenced !" undue in)luenceDwhere the relations su!sisting !etween the parties are suchthat one o) the parties is in a position to dominate the will

o) the other and uses that position to o!tain an un)airad(antage o(er the other


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eans and includes an" o) the )ollowing actcommitted !" 1 a part" to a contract 2 with hisconni(ance or 3!" his agent % with intent to decei(eanother part" thereto or his agent or induce him to

enter in contractActi(e concealment>uggestion which is not trueA promise made without an" intention to per)orm itAn" act )itted to decei(e% An" act which is declared

)raudulent


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@eceit which does not decei(e is not a )raud

egligence is no )raud

Ignorance is no )raud

ai(er

>ilence whether )raudE


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Lie )raud% it is incorrect or )alse statement !ut the )alsit"or inaccurac" is not due to an" desire to decei(e orde)raud the other part" It is innocent art" maing it

!elie(es it to !e true


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An enormous !elie) a!out something is called as mistae

wo inds o) mistaesistae o) Law

istae o) 9act


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Agreement in restraint o) marriageAgreement in restrain o) trade

Agreement in restraint o) legal proceedings

Agreement meaning o) which is uncertain

Agreement !" wa" o) wagerF-

one" is pa"a!le !" one person to another conditional onhappening or not happening o) )uture uncertain e(entthere must !e mutual chances o) gain or loss


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Agreement contingent on an uncertain )uture e(ent i) thee(en !ecome impossi!le

Agreement contingent on an impossi!le act

Agreement to do an act which su!se?uentl" !ecomes

impossi!le


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By performance sec (37)By death

By refusing tender of performance

By breach of contract

Anticipatory breach of contractBy impossibility of performance

By agreement or by consentNoation

By accord and satisfactionBy remission and !aierBy operation of la!By unauthori"ed material alteration of a contract.


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,emedies to aggrie(ed part">uit )or speci)ic per)ormance>uit )or in$unction>uit )or damages

"pes o) damages/ Compensator" damages/ ominal damages/

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