This article must be useful for civil engineering students , and law students for understanding Contract and factors associated with that , any suggestion and correction is appreciated. Notes of contract management in PDF format is available after this post.
First introduced in 1992
definition of contract management
“A contract is a promise or set of promise for the breach of which the law gives a remedy or performance of which the law in some way recognize as duty.”
- · Legally enforceable promise.
- · Binding
I. If the promisors fails has full capacity
II. If there is no illegality or fraud.
III. If the duty has not been discouraged.
IV. If no similar facts which defect prime facial duty.
A promise is a manifestation of intention to act or refrain from acting in a specified way, so made as to justify a promise in understanding that commitment has been made.
- I. The person manifestation the intention is the promisor
- II. The person to whom manifestation is addressed in the promises.
INDIAN CONTRACT ACT - 1 SEPT 1872
Applicable on Whole India except J&K
How an offer become contract ?
Mainly deals with 3 things below
- I. Contract Formation / creation
- II. Performance of a contract
- III. Remedies in case of breach
Three special kind of contract
- I. Contract of bailment & pledge
- II. Contract of indemnity and guaranty
- III. Contract of agency
Definition act ICA Section (2) (H)
“An Agreement enforceable by law is a contract”.
“An offer when accepted is an agreement /promise.”
“All contracts are agreements but all agreements are not contract”
1. Agreements with minors
2. Agreement with illegal objects
3. Agreements to impossible Act
1.1 ESSENTIAL ELEMENTS OF AN VALID CONTRACT SECTION 10
I Offer and Acceptance – definite and clear Acceptance à Absolute and Unconditional à No Variation
II.Consensus and Idem meeting of mind, both the parties taking the same thing at the same time.
III. Parties have an intention to create legal obligation à enforceable by law , in a personal agreement there is a presumption that parties don’t intend to create legal obligations In case of commercial agreement it is presumed that parties intend to create legal obligation.
IV. Lawful Consideration - No Consideration àNo contract
V.Competency of the parties à Major, person of sound mind , person not disqualified to enter in a contract.
VI Free Consent à Parties enters a contract with free will Ex àWhen free consent is missing the contract voidable
1 Coercion- when one party is committing a crime or threating to committing in order to force party to enter into contract.
2Under Influence – when one party in position dominates to misuse of others.
3Fraud- Giving false statement knowing them to be false,
4Misrepresentation- Innocent false statements,
VII.Lawful Object à not immoral, oppose to public policy.
VIII. Registration & Writing à must be written
IX. Certainty à clear , not confusing
X. Possibility of performance.
1.2 Kind of Contract
Form the point of view of enforceability
I Valid Contract
II. Voidable Contract (it is valid till it is rejected)
1.Missing free consent
Consequences if voidable contract is Rejected
- 1. No need to perform obligations
- 2. Refund the advances benefits
- 3. Compensations to suffering parties s
- I. Subsequent Impossibilities.
- II. Legal impossibilities
- III. Contingent Contract