Notesale: Turn your study into money

Document Preview

Extracts from the notes are below, to see the PDF you'll receive please use the links above

---

What is contract?
A contract is an agreement between parties, creating mutual obligations that are enforceable by
law
...

In some states, elements of consideration can be satisfied by a valid substitute
...

Contracts are promises that the law will enforce
...

What are the essential elements of a contract?
1
...
An offer communicates the offeror's terms to the offeree
...
”
A received offer marks the official start of the contract process
...

It is important to understand the other party’s contract processes
...


2
...

Two conditions must exist for acceptance to be valid
...
Second, the acceptance must correspond with the terms of the
offer
...

Acceptance is given by signing the contract
...

Another form of acceptance is implied, or implicit, acceptance
...
While implicit acceptance does not have the same legal
status as explicitly accepting a contract by signing it, the implication of acceptance can create an
implied contract, which may still be enforceable under certain circumstances
...
Awareness
The awareness element is sometimes called “a meeting of the minds
...

For a contract to be legally binding, both parties must be aware that they are entering into an
agreement
...

When awareness cannot be established, the contract may be voided and would therefore be
unenforceable
...

4
...
This can be
thought of as the output of the contract: the goods, services, or other thing of value that each party
is willing to offer to form an agreement
...
Capacity
Capacity is similar to awareness in that the goal is to ensure that all parties understand the terms
of the contract
...
For the contract to be enforceable, all signatories must demonstrate a clear
understanding of the contract’s obligations, terms, and consequences prior to signing
...
Legality
All contracts must comply with the law for all applicable jurisdictions where the contract will be
enforced
...


What is an agreement?
According to section 2(e) of The Indian Contract Act 1872 “Every promise and every set of
promises, forming the consideration for each other, is an agreement”
...
There is said to be an agreement between A and B
...
That is all agreements are not contract
...
For example, if an
agreement is not indented to create legal relationship, agreement not made with the free consent
of the parties, agreement not made for a lawful object etc
...

An agreement which does not create legal obligation is also not a contract
...
In fact,
there is no contract prior to some court order
...

For example, a bank mistakenly transfers a large amount of money into your account
...

You will have to return the money (টাকা ফেরত দিতত হতে) even if you don’t want to
...

o here we see that a quasi-contract is not agreed upon by the two parties but it comes into existence
by a court order
...
Most of the times the quasicontract is created to stop any of the parties from taking unfair advantage of the other
...
You have a yard and you commission a person to build a small door for
your car
...
At the same time very good for the value of your property
...
” Since the work was done also increased the value of your property, it would be immoral
if the worker doesn’t get paid for the extra work and materials
...
This is a quasi-contract
...
A contract which lacks enforceability is Void Contract
...

2
...

3
...

Conversely, the voidable contract is valid until the aggrieved party does not revoke it within
stipulated time
...
When it is impossible, for an act to be performed by the parties, it becomes void, as it
ceases its enforceability
...

5
...

On the other hand, the aggrieved party can claim damages for any loss sustained
...
It is an important document that outlines all the necessary details of a
transaction like the price and payment terms, buyer and seller responsibilities, warranties, delivery
methods, etc
...
In this blog post, we will discuss the different elements that make up a contract
of sale and how they apply to specific types of transactions
...

2) Ascertained Goods: The property in the goods passes to the buyer at the time and
place of identification when the goods pass from their existing entire state to a new and
different entire state
...
In
such a case, before payment of the price, which shall be paid by cheque or otherwise any
sum other than a lump sum or in cash, any part of such goods subject to different
conditions between the time of purchase and delivery shall pass to the buyer
...

5) When Right of Disposal is reserved and when the Goods are valuable: When the
property in the goods may be subject to different conditions between the time of purchase
and delivery and they are valuable, then immediately on completion of the sale, no person
is entitled to dispose of such goods without obtaining consent from him
...
g
...

Not all contracts are voidable; legal precedent must exist to absolve responsibility
...

The simplest way to void a contract is for both parties to agree that voiding is the best
option
...
That clause will outline and define the reasons why the termination
can occur
...
However, it is often used when one party has not fulfilled their side of the agreement,
there has been a contract breach, or one of the parties has acted fraudulently
...




---