...THE INDIAN CONTRACT ACT, 1872 The Law of Contract Constitutes the most important branch of mercantile or commercial law. It affects everybody, more so, trade, commerce anq industry. It may be said that the contract is the foundation of the civilized world. The law relating to contract is governed by the Indian Contract Act, 1872 (Act No. IX of 1872). The preamble to the Act says that it is an Act "to define and amend certain parts of the law relating to contract". It extends to the whole of India except the State of Jammu and Kashmir. The Act mostly deals with the general principles and rules governing contracts. The Act is divisible into two parts. The first part (Section 1-75) deals with the general principles of the law of contract, and therefore applies to all contracts irrespective of their nature. The second part (Sections 124-238) deals with certain special kinds of contracts, e.g., Indemnity and guarantee, bailment, pledge, and agency. The term contract has been defined by various authors In the following manner: "A contract is an agreement creating and defining obligations between the parties". -Salmond "A contract is an agreement enforceable at law, made between two or more persons, by which rights are acquired by one or more to acts or forbearances on the part of the other or others". -Anson "Every agreement and promise enforceable at law is a contract". -Sir Fredrick Pollock The Indian Contract Act has defined contract in...
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...The Indian Contract Act, 1872 is the law relating to Contracts in India. It came into force on September 1, 1872 and is extended to the whole of India except to the state of Jammu and Kashmir. The Indian Contract Act, 1872 initially also dealt with Sale of Goods, Indemnity and Guarantee, Law of Bailment, Agency and Partnership. However, in 1930, a separate Act on the Sale of Goods was passed. The Indian Partnership Act was passed in 1932. Interpretation of The Indian Contract Act, 1872 1. When one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal; 2. When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal, when accepted, becomes a promise; 3. The person making the proposal is called the "promisor", and the person accepting the proposal is called the "promisee"; 4. When, at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing, something, such act or abstinence or promise is called a consideration for the promise; 5. Every promise and every set of promises, forming the consideration for each other, is an agreement; 6. Promises, which form the consideration or part, of the consideration for each other are called reciprocal promises; 7. An agreement...
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...THE INDIAN CONTRACT ACT, 1872 The law relating to contract is governed by the Indian Contract Act, 1872. The Act came into force on the first day of September, 1872. It extends to the whole of India except the State of Jammu and Kashmir. The Act is by no means exhaustive on the law of contract. It does not deal with all the branches of the law of contract. Thus, contracts relating to partnership, sale of goods, negotiable instruments, insurance etc. are dealt with by separate Acts. What is contract? The term contract has been defined by various authors in the following manner: “A contract is an agreement creating and defining obligations between the parties”. —Salmond “A contract is an agreement enforceable at law, made between two or more persons, by which rights are acquired by one or more to acts or forbearances on the part of the other or others”. —Anson “Every agreement and promise enforceable at law is a contract”. —Sir Fredrick Pollock The Indian Contract Act has defined contract in Section 2(h) as “an agreement enforceable by law”. These definitions indicate that a contract essentially consists of two distinct parts. First, there must be an agreement. Secondly, such an agreement must be enforceable by law. To be enforceable, an agreement must be coupled with an obligation. A contract therefore, is a combination of the two elements: (1) an agreement and (2) an obligation. Thus Contract = Agreement +enforcement at...
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...1) INTRODUCTION Page - 1 2) PERFORMANCE OF CONTRACTS Page - 2 to 5 3) CONCLUSION Page - 6 4) BIBLIOGRAPHY Page - 7 INTRODUCTION IMPORTANCE OF CONTRACT LAW: Contract law lays down general principles of contract. It is like a limit or boundary within which parties can agree upon something. It lays down the circumstances in which it will be legally obligatory to perform a promise and provides remedies for breach. Our society depends upon free exchange in the marketplace at every stage. The interactions in the market all the times depend upon voluntary agreements between individuals or other “legal persons”. Such voluntary agreements can never become binding without a legal contract. It affects all of us since everyone enters into some kind of contract everyday without being actually aware of it. For example, eating out in a restaurant, travelling in a bus, taking property on lease, buying movie tickets, buying a house, etc all are contracts whether expressed or implied. EVOLUTION OF CONTRACT LAW: The origin of the contract law can be traced from the development of common law and it is also alleged to be an offspring of tort law, as both contracts and torts give rise to obligations. The difference between them lies in the fact that the tort obligations are imposed by law; on the other hand contracts are a medium through which people willingly create commitment between themselves. Contract law is based on a number of Latin legal principles...
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...PLEDGE A pledge is a special type of bailment in which a person temporarily transfers the possession or ownership of his/her property in order to secure a loan from the other person. It is defined as in the Indian Contract Act, 1872, as “The bailment of goods as a security for the payment of a debt or performance of a promise is called pledge. The bailor in this case is called a Pawner and the bailee is called a Pawnee.” Essentially, when the purpose of the bailment is to secure a loan, it is called a pledge. This article is concerned specifically with Section 176 of the Indian Contract Act, which deals with the pawnee’s right to sue or right of sale in case of the pawner’s default. The essential ingredients that are required to constitute a pledge are as follows: 1. Delivery of possession – As in bailment, the delivery of possession is essential in a pledge. Thus, in the case of Revenue Authority vs Sudarsanam Pictures, a film producer borrowed a sum of money from a financier and agreed to deliver the final prints of the film when they were ready. This was held not to be a pledge because there was no delivery of possession at the time of the agreement. It is also possible to let the pawner keep the physical goods even though the legal possession is transferred to the pawner. Thus, in Bank of Chittor vs Narsimbulu, a cinema hall equipment was pledged to the bank but the bank allowed the hall owner to keep the equipment to show the movies. The hall owner then sold the...
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...1) Online auctions: We believe it’s high time that we embrace the technology and make a transition to internet auctions. Develop an online platform through which growers can sell their products and buyers can purchase them. Both of them will be charged a 0.1 % of transaction amount. This will not only bring in additional revenue but also make the whole process of buying and selling a lot easier. These are the financials involved. We estimate that online portal will cost us around $3 million. With the revenue that we will generate from it, cost of portal will be covered in 341 days. 2) Service Customization As per the recent trend, many clients don’t want full range of auction services. Hence sometimes they bypass auctions and directly contact growers. Taking this into account, we have decided to offer clients what they want. Auctioneers will offer services in the form of bundles. Clients can customize their bundles as per their needs. 3. Situational Analysis 3.1. SWOT Analysis Strengths: * Rich heritage ( Considered America’s original motorcycle company) * Strong brand equity because of snowmobiles and off-road vehicles * Strong supply chain and distribution channel of parent company (Polaris): Polaris' marketing activities are designed to promote and communicate directly with consumers as well as to assist the selling and marketing efforts of its dealers and distributors. The company provides and advertises discount or rebate programs...
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...A Brief History of Indian Motorcycle America's love for the motorcycle began in 1900 with bicycle racer George M. Hendee and engineering wizard Carl Oscar Hedstrom. In 1901, the partners unveiled their first creation, the 1901 Single. The trade name chosen for their innovative machine would signify "a wholly American product in pioneering tradition". The name was Indian. 1910-1919 By 1911, Indian riders hold every American speed and distance record. In 1914, over 3,000 employees work on a 7-mile long assembly line in Indian's 1-million square foot Springfield, Massachusetts plant. Racing activities are suspended in 1916 as the company supplies the war effort with 41,000 machines. 1920-1929 In 1923 the company is renamed Indian Motocycle Company, dropping the "r" in "motorcycle". It's a decade of growth for the Indian model line, starting with the revolutionary 1920 Scout and followed by the 95-mph Chief, the even more powerful Big Chief, the lightweight Prince, the awesome 4-cylinder Four. The 1928 101 Scout becomes the machine of choice for "wall of death" stunt riders. 1930-1939 The Art Deco era hits the Indians adorned in a full range of Duco colors, two-tone designs, pinstriping, and decals. Two new lightweight models debut in 1932, the Motoplane and the Pony Scout. "Iron Man" Ed Kretz, aboard a Sport Scout, laps the entire field in his win at the 1937 inaugural Daytona 200. With the onset of World War II in 1939, the focus again shifts to providing the...
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...mangers and policy makers of motorbike industry,helping them to analyzing the factors which are affecting while driving their industry to different countries of the world. Throughout the last few year,the acronym PESTLE has been suffering a numbers of changes,but it seem to be the most important factor which is helpful for decision-makers of royal-Enfield to analysis the current situation of the that country where industry expands.There are six factors which are influencing PESTLE analysis. Political factors include areas such as taxation policy, law labor of law,transportation problems and stable political environment. Furthermore, governments have great influence proposal that limit number of motorcycles being sold in the country because Indian currency changes everyday with the comparison of UK pounds.The changes of currency means the changes of price of products and demand of product like royal Enfield are also changes which means recession are enter into the market so UK government take some steps to solved the this problem.Royal Enfield sales would affect by this issue.Furthermore UK consumers pay higher pre-tax prices for Motorbikes than anyone else in the Europe.Government is keen to attract foreign firms to invest in UK. Economical factors include economical stability,rate of interest,currency rate[market Recerch report{2013}] . These are factors which puts impacts on the operation of business and accrucul decisions. This is because the rate of interest and the currency...
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...civil law. It governs and regulates the trade and commerce in the country. Mercantile law deals with the needs of a business man. This includes laws relating to insurance, partnerships, contracts, companies, negotiable instruments, arbitration, carriage of goods etc. A mercantile law in Pakistan is taken from the English law. So it follows the English laws to a considerable extent with some modifications and reservations to suite with the Indian conditions and practices. Following are the main source of the Pakistan’s mercantile laws: 1. English Mercantile Law: An English law which developed and come into existence through the customs and usage of traders and merchants in England is the main source of the Indian Mercantile laws. These customs and usages of controlled the merchants in their dealings with each other. It is also known as the Common Law. It is unwritten and are based on customs, precedents and usages. The law of contracts is a part of Common law in England. It is one of the most important parts of mercantile law. 2. Indian Statute Law: Another main source of Indian Mercantile law is the Acts passed by the Indian Legislature. Pakistan Contract Act 1872, The Sale of Goods Act 1930, The negotiable Instrument Act 1881, The companies Act 1953 are some of the Acts passed by the Indian Legislature. 3. Judicial Decisions: Another important source of mercantile laws is the judicial decisions of the Courts. Disputes settled by the courts earlier have persuasive and guiding...
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...business need to be invented and worked. Existence of e-contract in the market is accomplishing the need for innovativeness in the traditional business segments. Businesses, both existing and new are trying to create an online individuality and an e-contract stand keeping in view the needs of the modern times. E-contract is one of the divisions of e-business. It holds a similar meaning of traditional business wherein goods and services are switched for a particular amount of consideration. The only extra element it has is that the contract here takes place through a digital mode of communication like the internet. It provides an opportunity for the sellers to reach the end of consumer directly without the involvement of the middlemen. New models of business demands different organisational charters. E-contract demands an organizational charter which caters to its new marketing needs. This mode of business enables businesses to save time on product design and device products according to the individual customer requirement, track sales and get immediate feedback from the customer. Contracts have become so common in day-to-day life that most of the time we do not even recognize that we have entered into one. Right from buying a vegetable and hiring a Cab or to buying an airline ticket online, uncountable thing in our daily exists is governed by contracts. The Indian Contract Act, 1872 rules the way in which contracts are made and...
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...School, PUNE Contract is an agreement in which two parties wilfully enters into which binds them in a civil obligation. Therefore in order to enter into a contract the parties must agree to the same fact in the same manner. Their decision should not be waivered by any factors like fraud, coercion, misinterpretation or mistake. If any of the previously mentioned factors affect the decision of the parties entering into a contract then consent is said to be not given freely. Free Consent is very important to our case as there is a scope of misrepresentation that is one of the parties did not have or was mistaken to the material fact of the contract. Mulla and Pollock commenting on this section have observed that the expression “the same thing” appearing in this section means the whole content of the agreement, whether it consists, wholly or in part, of delivery of material objects, or payment, or executed acts or promises. According to section 10 of The Indian Contract Act, 1872, all agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void. Nothing herein contained shall affect any law in force in India, and not hereby expressly repealed by which any contract is required to be made in writing or in the presence of witnesses, or any law relating to the registration of documents.[1] According to sec 2(h) of the Indian Contract Act, 1872,” An...
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...GUJARAT UNIVERSITY SYLLABI OF THREE YEARS LL.B. PROGRAMME WITH CREDIT BASED SYSTEM (As prescribed by the BAR COUNCIL OF INDIA and as per the Rules of Legal Education, 2008) Effective from the academic year 2011-12 THREE YEARS’ LL.B. POGRAMME First LL. B. Semester – I FIRST LL.B. - SEMESTER 1 (MONSOON) PER WEEK CORE COURSE 101 SUBJECTS Law of Tort including MV Accident And Consumer Protection Laws Criminal Law Paper – I (General Principles of Penal Law) Criminal Law Paper – II (Specific Offences) Law of Contract Special Contract Constitutional History of India Use of Law Journals and Legal Software LECTURES 4 OTHERS 1 TOTAL 5 CREDITS (SEM)29 5 CORE COURSE 102 CORE COURSE 103 CORE COURSE 104 CORE COURSE 105 FOUNDATION 106 F SOFT SKILL 107 K 4 4 4 4 1 1 1 1 1 1 1 1 5 5 5 5 2 2 5 5 5 5 2 2 1 Semester – I Monsoon Semester CORE COURSE 101 : LAW OF TORT INCLUDING MV ACCIDENT AND CONSUMER PROTECTION LAWS Objectives of the course : With rapid industrialization, tort action came to used against manufacturers and industrial unit for products injurious to human beings. Presently the emphasis is on extending the principles not only to acts, which are harmful, but also to failure to comply with standards that are continuously changing due to advancement in science and technology. Product liability is now assuming a new dimension in developed economics. In modern era of consumer concern of goods and services, the law of torts has...
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...16(c) of the Contract Act provides answer t this problem. It mandates that Person to aver in the plaint and establish the fact by evidence aliunde that he has always been ready and willing to perform his part of the contract. Distinction between “readiness” and “willingness” is that the former refers to financial capacity and the latter to the conduct of the person wanting performance . Person’s readiness and willingness, which is a condition precedent, must be in accordance with the terms of the agreement. In a suit for specific performance, person is to approach Court with clean hands. Right from the date of the execution till date of the decree he must prove that he is ready and has always been willing to perform his part of the contract. 2. Section 55 of Indian Contract Act,1872 provides answer to this problem. When a party to a contract promises to do a certain thing at or before a specified time, or certain thins at or before a specified time and fails to do such thing at or before a specified time, and fails to do such thing at or before a specified time, the contract or so much of it as has not been performed, becomes voidable at the option of the promisee, if the intention of the parties was that time should be of essence of the contract. 3. Section 53 of Indian Contract Act,1872 provides answer to this problem - When a contract contains reciprocal promises and one party to the contract prevents the other from performing his promise, the contract becomes voidable...
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...Capacity to contract One of the essentials of a valid contract, mentioned in section 10, is that the parties to the contract should be competent to make the contract. According to section 11 : “Every person is competent to contract who is of age of majority according to law to which he is subject, and who is of sound mind, and is not disqualified from contracting by any law to which he is subject.” It means that the following three categories of persons are not competent to contract. 1. A person who has not attained the age of majority, i.e., one who is minor. 2. A person who is of unsound mind 3. A person who has been disqualified from contracting by some law. Although the above mentioned categories of persons are not competent to contract, yet they may sometimes be making some bargains, taking some loans, or be supplied with some goods by third parties, or be conferred with some benefits etc., the position of such person in such like situations is being discussed below. THE POSITION OF A MINOR Who is a minor ? A person who has not attained the age of majority is a minor. Section 3 of the Indian Majority Act, 1875 provides about the age of majority. It states that a person is deemed to have attained the age of majority when he completes the age of 18 years, except in case of a person of whose person or property a guardian has been appointed by the Court in which case the age of majority is 21 years. Nature of a minor’s agreement As noted above...
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...ALL CONTRACTS ARE AGREEMENTS BUT ALL AGREEMENTS ARE NOT CONTRACTS 1 – INTRODUCTION A contract is an agreement between two parties that creates an obligation to do or refrain from doing a particular thing. The purpose of a contract is to establish the terms of the agreement by which the parties have fixed their rights and duties. Courts must enforce valid contracts, unless one party has legal grounds to bar enforcement The Law of Contract is that branch of law which determines the circumstances in which promise made by the parties to a contract shall be legally binding on them. All of us enter into a number of contracts everyday knowingly or unknowingly. Each contract creates some right and duties upon the contracting parties. Indian contract deals with the enforcement of these rights and duties upon the parties. Indian Contract Act, 1872 came into effect from 1st September, 1872. It extends after independence to whole Pakistan and known as “Contract Act, 1872”. Contract law is based on the principles expressed in Latin phrase; “PACTA SUNT SERVANDA”. The meaning of this phrase is “agreements to be kept”, but more literary means “PACTA” is `must be kept`. "An agreement enforceable by law is a contract. It is clear these definitions that the there elements of a contract ore (a) Agreement Contractual Obligation (b) Enforceability by Law. For Example: X invites his friend to tea and the latter accepts the invitation. This is a social agreement not a contract because...
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