A] Indian Contract Act, 1872
A] Indian Contract Act, 1872
The Contract Act serves as a Mother Act. The Contract Act has a direct link with most other Acts. Whenever two or more people want to establish a relation between/amongst them, there is a need for a contract: Sale of Goods Act (buyer-seller relation), Partnership Act (principal-agent relation), Negotiable Instruments Act (debtor-creditor relation) and so on.
Key takeaways:
• A contract is any promise or set of promises that are made by one person to another in return for some consideration and that is enforceable by law.
• Every contract to be valid must have all the essential elements as stated in the act, such as: the parties must be competent to contract; there should be free consent of both parties; there should be certainty in meaning and all the legal formalities should be complied with.
• Negotiation of contracts. In every contract, the proposer must make an offer and the offeree must accept the offer / proposal exactly the way it is made, i.e. the acceptance should be absolute and unqualified. If the acceptance is partial or qualified, then it amounts to rejection of the offer and making of a counter offer. The original offer can no longer be accepted by the offeree. This is a very important point to know at the time of negotiating contracts.
• Drafting a contract. We learnt about the essential of a valid contract. The exercise on drafting of a agreement to lease was especially useful to understand this aspect.
• Responsibilities of a person once you enter into a contract. If you don’t live up to your commitment then several courses of action can be taken against you, in the form of nominal damages, special damages, exemplary damages and so on.
Importance / Relevance
• A contract enables people to carry on business when there is no trust otherwise between the people.
• It is very important to know who is eligible to enter into contract, because if you enter into a contract with someone who is not
The Contract Act serves as a Mother Act. The Contract Act has a direct link with most other Acts. Whenever two or more people want to establish a relation between/amongst them, there is a need for a contract: Sale of Goods Act (buyer-seller relation), Partnership Act (principal-agent relation), Negotiable Instruments Act (debtor-creditor relation) and so on.
Key takeaways:
• A contract is any promise or set of promises that are made by one person to another in return for some consideration and that is enforceable by law.
• Every contract to be valid must have all the essential elements as stated in the act, such as: the parties must be competent to contract; there should be free consent of both parties; there should be certainty in meaning and all the legal formalities should be complied with.
• Negotiation of contracts. In every contract, the proposer must make an offer and the offeree must accept the offer / proposal exactly the way it is made, i.e. the acceptance should be absolute and unqualified. If the acceptance is partial or qualified, then it amounts to rejection of the offer and making of a counter offer. The original offer can no longer be accepted by the offeree. This is a very important point to know at the time of negotiating contracts.
• Drafting a contract. We learnt about the essential of a valid contract. The exercise on drafting of a agreement to lease was especially useful to understand this aspect.
• Responsibilities of a person once you enter into a contract. If you don’t live up to your commitment then several courses of action can be taken against you, in the form of nominal damages, special damages, exemplary damages and so on.
Importance / Relevance
• A contract enables people to carry on business when there is no trust otherwise between the people.
• It is very important to know who is eligible to enter into contract, because if you enter into a contract with someone who is not