Bus Law
Introduction
The law of contract is applicable not only to the business community, but also to others. Every one of us enters into number of contracts almost everyday, and most of the time we are doing so without realizing what we are from the point of law.
The law of contract furnishes the basis for the other branches of mercantile law. The enactment relating to sale of goods, negotiable instruments, insurance, partnership and insolvency are all founded upon the general principal of contract law.
Definition of Contract
According to Section 2(h) of Indian Contract Act 1872, “An agreement enforceable by law is a contact.”
A contractual relation comes into existence when only one party makes a proposal or offer to the other party and that other party signifies or gives his acceptance.
Essential element of valid contract is as follows:
1) Offer and acceptance:
There must be a ‘lawful offer’ and ‘lawful acceptance of the offer.
2) Intention to create legal relation
There must be an intention among the parties that the agreement should be attached by legal consequences and create legal relation.
3) Lawful consideration
There must be a lawful consideration. Consideration has been defined as the price paid by one party for the promise of the other.
4) Capacity of parties
According to Section 11 of Contract Act 1872, In order to be competent to contract the parties must be of the age of majority and of sound mind and must not be disqualified from contracting by any law to which they are subject.
5) Free consent
According to Section 13 of contract act 1872,”Consent means that parties must have agreed upon the same thing in the same sense.” It is an essential element of a valid contract.
6) Lawful object
For the formation of a valid contract it is also necessary that the parties to an agreement must agree for a lawful object.
7) Writing and registration
According to the Indian Contract Act a contract may be oral or in writing. But in certain special cases it lays down
The law of contract is applicable not only to the business community, but also to others. Every one of us enters into number of contracts almost everyday, and most of the time we are doing so without realizing what we are from the point of law.
The law of contract furnishes the basis for the other branches of mercantile law. The enactment relating to sale of goods, negotiable instruments, insurance, partnership and insolvency are all founded upon the general principal of contract law.
Definition of Contract
According to Section 2(h) of Indian Contract Act 1872, “An agreement enforceable by law is a contact.”
A contractual relation comes into existence when only one party makes a proposal or offer to the other party and that other party signifies or gives his acceptance.
Essential element of valid contract is as follows:
1) Offer and acceptance:
There must be a ‘lawful offer’ and ‘lawful acceptance of the offer.
2) Intention to create legal relation
There must be an intention among the parties that the agreement should be attached by legal consequences and create legal relation.
3) Lawful consideration
There must be a lawful consideration. Consideration has been defined as the price paid by one party for the promise of the other.
4) Capacity of parties
According to Section 11 of Contract Act 1872, In order to be competent to contract the parties must be of the age of majority and of sound mind and must not be disqualified from contracting by any law to which they are subject.
5) Free consent
According to Section 13 of contract act 1872,”Consent means that parties must have agreed upon the same thing in the same sense.” It is an essential element of a valid contract.
6) Lawful object
For the formation of a valid contract it is also necessary that the parties to an agreement must agree for a lawful object.
7) Writing and registration
According to the Indian Contract Act a contract may be oral or in writing. But in certain special cases it lays down