Indian Contract Act

Questions and Answers

Contract = Agreement + Enforceable by law

Mac Pherson vs Appanna

Offer must be capable of creating legal relationship

Every promise and every set of promises forming the consideration for each other, is an agreement. Signup and view all the answers

It allows for clear communication of the terms Signup and view all the answers

The offer must be capable of creating a legal relationship Signup and view all the answers

An offer is a definite proposal, while an invitation to offer is an invitation to negotiate Signup and view all the answers

It establishes that an offer must be capable of creating a legal relationship Signup and view all the answers

The terms of the offer must be definite and certain Signup and view all the answers

The offer should be communicated Signup and view all the answers

Study Notes

A contract is formed when there is an agreement between two parties, which consists of an offer, acceptance, and consideration.

The terms of an offer must be definite and certain, as defined in the case law of Guthrie v. Mozley.
An essential characteristic of an offer is that it must be communicated to the offeree.
An offer must be express, meaning it is explicitly stated, rather than implied.

An agreement is the mutual understanding between two parties, which includes the offer and acceptance.

The essential requirement for an offer to be considered valid is that it must be made with the intention of creating a legal relationship.

An offer is distinguished from an invitation to offer in that an offer is a specific proposal, whereas an invitation to offer is a general request.

The case law of Balfour v. Balfour emphasizes that an offer must be clear and certain in its terms.
According to the case law of Harvey v. Facie Mac Pherson, an offer must be made with the intention of creating a legal relationship to be considered valid.
The case law of Lalman Shukla v. Gauri Dutt emphasizes that an offer must be communicated to the offeree to be considered valid.