Indian Contract Act of 1872: Definitions

• The Indian Contract Act was established in 1872.

Preliminary Matters

• This Act's short title is the Indian Contract Act, 1872.
• It extends to the whole of India.
• The Act came into force on September 1, 1872.
• The Act does not affect provisions of any Statute, Act, or Regulation not expressly repealed.
• It doesn't impact any trade usage or custom, or contract incident inconsistent with the Act's provisions.

Key Definitions

• Proposal: signifies another his willingness to do or abstain from doing anything for assent.
• Acceptance: When the person to whom the proposal is made signifies his assent.
• Promise: A proposal, when accepted.
• Promisor: The person making the proposal.
• Promisee: The person accepting the proposal.
• Consideration: At the promisor's desire, the promisee or any other person does something, abstains from doing, or promises to do/abstain.
• Agreement: Every promise and every set of promises, forming consideration for each other.
• Reciprocal Promises: Promises forming the consideration, or part of it, for each other.
• Void Agreement: An agreement not enforceable by law.
• Contract: An agreement enforceable by law.
• Voidable Contract: An agreement enforceable by law at the option of one or more parties, but not others.
• Void Contract: A contract that ceases to be enforceable by law.

Communication, Acceptance, and Revocation of Proposals

• Communication, acceptance, and revocation are made by act or omission with intent to communicate.
• A proposal is complete when known to the person it is made to.
• Acceptance is complete against the proposer when put in transmission, and against the acceptor when the proposer knows.
• Revocation is complete against the person making it when put in transmission, and against the person it is made when they know.

Proposal Revocation

• A proposal may be revoked any time before acceptance is complete.
• An acceptance may be revoked any time before the communication of the acceptance is complete..

Revocation Methods

• Communication of revocation notice is key.
• Proposal acceptance happens with time lapse.
• Failure to fulfill a condition precedent to acceptance is key.
• Proposer's death or insanity before acceptance knowledge is important.

Agreement Essentials

• Acceptance must be absolute and unqualified.
• Acceptance needs expression.
• Acceptance happens reasonably.

Agreements as Contracts

• Agreements are contracts if made by free consent.
• Agreements are contracts with lawful consideration.
• Agreements are contracts with a lawful object and are not expressly declared void.
• The Act doesn't affect laws requiring written contracts, witnesses, or document registration.

Contract Competency

• Every person is competent to contract if they are of the age of majority.
• Every person is competent to contract if they are of sound mind.
• Every person is competent to contract if not disqualified by law.
• Sound Mind: A person understands the contract.
• Sound Mind: A person can form rational judgment.

Consent

• Two or more people agree on the same thing, but in the same sense.
• "Free consent" is not caused by coercion, undue influence, fraud, or misrepresentation.
• "Free consent" is subject to mistake regulations.
• "Free consent" is said to be caused when it would not have been given

Coercion

• "Coercion" happens when committing any act forbidden by the Indian Penal Code (45 of 1860).
• "Coercion" happens with unlawful detaining.
• "Coercion" happens when there is a threat to detain any property to prejudice any person.
• "Coercion" happens when needing to cause any person to enter into an agreement.
• It's immaterial whether the Indian Penal Code is in place where the coercion is employed.

Undue Influence

• A contract is induced by "undue influence.”
• Relations between parties indicate domination and unfair advantage.

Dominate Considerations

• Holding real or apparent authority is a factor.
• Standing in fiduciary relation to another has influence.
• Contracts with mentally affected people might be influenced.
• Those affected people might be facing age, illness, distress.

Fraud Elements

• Suggestion as a fact, that which is not true, by one who does not believe
• Actively concealing a fact by one having knowledge or belief of the fact
• Promise made without intent to perform
• Any other act fitted to deceive
• Legal fraudulent acts
• Silence is not fraud, unless there's a duty to speak or it is equivalent to speech.

"Misrepresentation”

• “Misrepresentation” has causes.
• Positive assertion, in a manner not warranted by the information
• Untrue statements, though believed.
• Duty breach, without intent to deceive
• Advantage gains to persons
• Causing mistake for agreement

Voidability

• Agreements may be caused by coercion fraud, or misrepresentation
• Contracts are voidable when caused by coercion, fraud, or misrepresentation
• Consent is so caused.
• Consent is voidable at the party's option.
• Consent is subject to discovering truth.
• Fraud or misrepresentation did not cause contract agreement.
• Agreements are voidable.

Contract Setting Aside

• Contracts are due to “undue influence.”
• An agreement is voidable at the option of the party.
• May set aside contract absolutely is a possible action.
• It has a benefit, set aside upon terms and conditions as a court requires.

Agreement Void

• Agreements are a mistake as to matter of fact.
• Agreements are matter of fact essential to an agreement.
• Erroneous opinion is a mistake.

Mistake Effect

• Contracts caused by a mistake as to any law in force in India are not voidable.
• Mistake effects are mistakes.

Agreement lawfulness

• Considerations/objects of contract is lawful
• Unless forbidden by law happens
• Defeating law provisions is relevant
• Something is fraudulent
• Something implies injury to the person or property
• A court says something is immoral

Agreement Cases

• Each of these cases are for consideration of an agreement.
• Objects of agreements are said to be unlawful if void is in effect.

Agreement Considerations

• Agreements are void if considerations objects are unlawful in part.
• Is single consideration
• Any part of any one.

Void agreement

• Agreements can be made without consideration
• In a contract there needs to be something in writing and registered
• If not a written contract that is registered
• it needs to be a promise to pay a debt barred by limitation law.

Restraints

• Agreements in restraint of marriage are void
• Agreement in restraint is that of trade, void
• Agreements restrained need restraint

Agreement Exceptions for Guarantee

• Agreement relates to banking or financial institution
• Stipulate a term in guarantee
• Making provision for guarantee
• Guaranties rights
• Extinguishes a party's discharge

Meaning uncertain agreements

• Meaning isn't certain
• Meaning can't be valid

Agreement voids

• Agreements are by way of wager.
• People search for recovering alleges
• It happens on a wager made or entrusts.
• No event abides a wager
• Wagers win and give people bad luck

Contingent Contracts

• Contingent Contract" defined.
• A “contract” does something if some event happens.
• Contract is necessary to collateral events.

Contracts on Events

• Contracts are contingent if it happens.
• Contracts take place unless an uncertain future event happens.
• Event can't be enforced by happens
• Events occur unless the event is lawful.

Non-Happening Contracts

• Anything doesn’t happen unless that happens
• A happening of the event has happened.
• Contracts happen to be if enforced.

Time Factors

• Contingent contracts must be completed in a fixed time.
• Contingent contracts become fixed if it happens.
• Contracts void on the event of expiration of set period.

Impossible Eventuality

• Agreement is contingent when impossible.
• Agreements are contingent to do anything that is not to do anything.
• Impossible event happens
• All is void at the time it is made.

Contract performance

• Contracts performed need parties to do it.
• Performance needs to be offered
• Respective performance must be followed.
• Other provisions need to have consent

Representatives bind promise

• Death is certain before performance occurs.
• A contrary intention differs greatly.

Acceptance Effect

• Performances happen by accepting offers
• Refusals must be effectuated
• No promisee responds but rather becomes irresponsible.
• Every aspect performs.

Considerations

• It must be unconditional
• It must be proper
• Opportunities rise
• All joint events need to go as offered

Contracts Performed

• Persons contracts need performance
• Party must take it to perform
• Such promises should be performed by said promisor in effect.

Liability

• Joint liabilities need evolution
• Joint or promised people cause devolution
• Promisees evolve right from the start.
• Rights happen in joint lives.

Payments occur

• Payments are a way to release joint owners.
• Performance of promise is a payment.
• Some times places performance.

Reciprocal Occurrences

• Performers are bound to perform
• Someone wants to perform
• That performance doesn’t matter unless they do it back.

Order of Performance

• When are promises for reciprocation
• To be expressly fixed by contract
• Can be performed in given order
• Doesn’t need the contract
• Order to perform happens how the nature is.

Party Prevention

• How likely the part will take if one were too impede
• There for making things avoidable. -

Loss Liability

• Happens between reciprocal promises
• Cannot happen the other.
• Performance not to be planned
• Promisour cannot follow.
• Payment to happen

Failure to Perform

• Sometimes time can be essential.
• Something needs a promise at a given time frame.
• In order to void the promise this needs to be shown,

Performance Acceptance

• Happens out time with agreement
• Promisees need such agreement.
• If so cannot get anything when promised,

Impossible Agreement

• Some agreements are just to impossible
• It renders the agreement itself void.

Performance Liability

• Unlawful action ensues and should have no effect.
• To make it right.
• To compensate for loss.

Reciprocal promise

• Legal matters are first
• Illegal happens if certain condition arise,
• Contracts may vary, there needs to be agreement’

Legal Matters

• There needs be an understanding on each side
• There needs the be proper action
• With proper intension,

Payments

• Some are indicated with debit
• Has several distinct needs
• Payments needed for that matter

Application of payment

• All should indicate when to make payments
• Nothing left for circumstances to not allow.
• When can this be an issue?

Rescission

• Novation
• Alteration
• New contract
• It always has some end to its means

To be void and rescind

• You need to look for benefits
• Make sure payments are made
• Restore the effect
• Communicate well

Neglect of promises

• Promises must follow this,
• There has to be reasonable facials.
• For whom promisees

Relations Resembling Contract

• You need to claim all.
• If you are incapable you need what one has to provide.
• Legal standing helps.
• Supplies match capacity.

Obligation Reimbursement

• Need another payment
• Person interest
• Another bound can repay
• Need good title.

Breach of contract

• Consequences are key
• There needs to be compensation
• This has to be a breach

Common carrier Liability

• It is not what to do
• And some cant do this

The transfer

• The bailor is obligated
• Unless the ball delivers
• All must agree.

Finding responsibility

• You need good title
• Baliees must provide information
• The baliee’s role is to have that set

Bailee needs no title

• This must be clear
• The payment has to be with the right title
• Has to seek to the payment of the courts

Third party bail

• In order to claim this
• Goods need to be baled if one must appeal
• Must end to delivery.

Finding good sues

• Has no fight to follow.
• May find some compensation
• Cannot find who to sue

Finder responsibilities

• What commonly is sold
• Good needs can sue
• Should look first,

Where can the owner retain

• The has in accordance of the payment
• Has seen the use of labor
• All has a standing reason.,

Banks and agents liability

• May receive a high payment
• There should be an effect for balance
• They are bound by title and have an exception.

To pledge

• Bailment is given in security only
• The transferor is referred to,

Retaining

• The pawnee is liable
• Only with proper performance
• Not to for interest of money

Pawnee has no right

• Must abide to certain contracts
• Pledged payments should be offered other than in the case below.
• Unless they have a pledge in effect

Pawnee rights happen because of costs

• Extra payments get paid,
• Extra payments all happen for to see preservation or promise

If things not paid

• All have to pay.
• Pawnee needs to bring that for himself to sue the debt
• Can retain payment
• Can sell the payment on giving good knowledge of the payment to be given

Pledge Payments

• The owner has had his obtain by his under.
• When can you use this?

Pledge

• The pawnor has had a void contact
• But all comes with the good things the payments give

Rights in effect

• As to the level what to seek
• By all can obtain.

Power

• Each is to stay from with the best reasons. -

Apportionment

• Is between is right,
• All should stay in with the good side,

Agent and principal liability

• What an person to claim for the other’

Sound mind

• How to retain,
• Has no good action to be made
• With who can they all.

No need For A

• Can take this if all is good,

Can is not,

• if all for such should
• take good title
• It may not it that is

Express and implicit authority

• The agents power