...consideration. ➢ “No consideration- No contract” – explain and give exceptions. ➢ Discuss the provisions of law relating to contract by minor. ➢ Agreements Opposed To Public Policy. ➢ Free consent. ➢ Legality of object and consideration 1. ESSENTIAL ELEMENTS OF A VALID CONTRACT 1. “All contracts are agreements but an agreement are not contracts” – Discuss? (OR) Essential elements of valid contract? Ans. Indian contract Act (I A), 1872, sec 2 defines a contract us “an agreement enforceable by law.” From the above definitation, the features of contract can be classified as 1. Agreement 2. Legal obligation. 1. Agreement: According to Sec2 (e), “Every promise or every set of promises forming consideration for each other” is called an Agreement. Therefore, AGREEMENT = OFFER + ACCEPTANCE CONTRACT =AGREEMENT+ENFORCEABILITY AT LAW FEATURES OF AN AGREEMENT: 1. Plurality of the parties 2. Consensus – ad-idem 3. Legal obligation 1. Plurality of the parties; for every agreement, there should be minimum two parties because one person alone cannot enter into an agreement with himself. 2. Consensus – ad-idem; the minds of both the parties must be in ad-idem, i.e., both the parties must think of the same subject matter the same time and in the same sense. 3. Legal obligation; an agreement, to become a valid contract, it should...
Words: 11667 - Pages: 47
...agreement." Thus it is clear from this definition that a 'promise' is an agreement. Section 2 (b) states that "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." An agreement, therefore, comes into existence only when one party makes a proposal or offers to the other party and that other party signifies his assent (i.e., gives his acceptance) thereto. In short, an agreement is the sum total of 'offer' and 'acceptance'. Example, A promises B to sell his horse for Rs. 10,000/-. The Law of Contract deals with such promises which create legal obligations. This excludes those promises made in common life which may be morally binding but creates no legal binding. Promises which do not give rise to legal obligations are not contracts. For example, if A promises B to attend the dinner and fails to attend then B cannot sue A for the price of non-consumed food. The Law of contract creates obligation between the parties to the contract and not against the whole world. According to Section 10, “All agreements are contracts if they are made by 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”. The...
Words: 15180 - Pages: 61
...completed the readings for this topic you should be able to: > define consideration and be able to identify when it is present; > explain and apply the legal principles relating to consideration; > explain the difference between past, executed and executory consideration; > explain and apply the doctrine of promissory estoppel; > identify contracts which must be in writing; > recognise the classes of persons who have limited contractual capacity and describe the effect that each has on simple contract; > outline the common law rules regarding contracts entered into by infants and which can be valid, voidable or void; > summarise statutory changes to the common law made in NSW and SA in relation to infants; and > outline the common law rules with regard to capacity to contract with respect to corporations and bankrupts, the mentally ill and those under the influence of alcohol. Graduate School of Business 4:2 Step 3: Consideration Consideration is something for something. Put another way, it is the price the promisee pays for the promise. For example, in the case of the purchase of a house, it is that house in exchange for the purchase price. Consideration makes the agreement in a commercial bargain. A person seeking to enforce a contract must have, in fact, provided consideration for the promise which they seek to enforce against the other party. Note, that an exchange of promises may be enough to constitute consideration, as may be a promise to do work or a promise...
Words: 3143 - Pages: 13
...publishing the mark schemes for the May/June 2009 question papers for most IGCSE, GCE Advanced Level and Advanced Subsidiary Level syllabuses and some Ordinary Level syllabuses. www.xtremepapers.net www.studyguide.pk Page 2 Mark Scheme: Teachers’ version GCE A LEVEL – May/June 2009 Syllabus 9084 Paper 03 Assessment Objectives Candidates are expected to demonstrate: Knowledge and Understanding – recall, select, use and develop knowledge and understanding of legal principles and rules by means of example and citation Analysis, Evaluation and Application – analyse and evaluate legal materials, situations and issues and accurately apply appropriate principles and rules Communication and Presentation – use appropriate legal terminology to present logical and coherent argument and to communicate relevant material in a clear and concise manner. Specification Grid The relationship between the Assessment Objectives and this individual component is detailed below. The objectives are weighted to give an indication of their relative importance, rather than to provide a precise statement...
Words: 2128 - Pages: 9
...Foreign Country) If you are 18 years of age or older, you must provide your most current Illinois Driver’s License # or Illinois State Identification #. 1a. Are you a United States citizen/naturalized citizen? Yes If NO, you must provide your Alien # alien registration number or provide other proof of documentation. No Illinois Driver’s License Number OR Illinois State Identification Number (Alien # - Resident Alien Card/Permanent Resident Card) (Admission # Form I-94/I-94W) Yes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . No 2. Have you ever been convicted of a felony? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. In the past 5 years, have you been a patient in a mental institution or any medical facility used primarily for the care or treatment of persons for mental illness? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. Are you addicted to narcotics? . . . . . . . . . . . . . . . . . . . . . . . . . . . ....
Words: 1240 - Pages: 5
...1.0 Introduction: Law: Laws are present in this world for solely one reason that is to keep order and protect the people from harm ways. Each and every step that we take in the outside world is somehow governed by law For Example, purchasing a new apartment or starting a new business. Contract Law: it can be stated as “the body of law that administrates oral and written agreements associated with exchange of goods, money and property.’’ A contract law includes certain other aspects such as the nature of contract, contracts limits, freedom of contract and ending period of contract. Contract law is an agreement between individuals and is upheld by law and penalties are enforced if the contract is void or tempered with once the agreement has been signed. The reason contract law exists is to form a mutual understanding between the parties who are involved to avoid future problems and changes by either property without both ends agreement. Without contract law, all the agreements established between the parties will become impractical and meaningless and both sides would try to change the agreements along the way making it harder and difficult for them to execute their plans properly. UK Law: The United Kingdom’s constitution is in unwritten form. Body of UK law is purely based on statue, traditional rights and common law. Alteration comes about as time changes due to modified parliament acts. Some of the Malaysian laws are from the English law act. Common law and equity...
Words: 2903 - Pages: 12
...Juvenile Process and Corrections Juvenile Process and Corrections Detained Dispositional Hearing Jurisdictional Hearing [Detained] Rehearing Pretrial Hearing [Released] Home Supervision Detention Hearing Probation Commitment Detention Pretrial Hearing Petition Detained The officer will have several choices as how to handle the situation. First the officer would need to determine if the situation is serious enough to take Collen directly to the Juvenile Center intake unit. The officer could also decide to write a citation and make Collen, and her aunt sign a promise to see a probation officer at the Juvenile Center. In this case with Colleen M. the officer took Colleen to the Juvenile Center intake unit and asked that charges be filed since the situation was serious with the death of a neighbor. The officer will have several choices as how to handle the situation. First the officer would need to determine if the situation is serious enough to take Colleen directly to the Juvenile Center intake unit, or if writing a citation. Colleen and her aunt would sign a promise to see a probation officer at the Juvenile Center. The officer needs to investigate then to receive the evidence and facts to determine if the death was caused by Colleen acting in a reckless or criminal negligence. Or if Colleen had not simply...
Words: 1326 - Pages: 6
...Element of contract The objectives of element of contract are to explain the requirement of a valid offer and acceptance which lead to the formation of a contract provided other essential elements, In other word intention to create legal relations and ,in most cases, consideration are also present. problem also arise in connection with the need for writing in some cases and the capacity of the parties. That it decides that where an offer is in the form of a promise for an act, the performance of the act is the acceptance and that offers of this type may be made to a particular person or to the world at large ,In other word to any unmentioned person or persons. Definition of contract A contract may defined as an agreement enforceable by law between two or more persons to do or abstain from doing some act or acts, their intention being to create legal relation and not merely to exchange mutual promises. I order to decide whether a contract has come into being, it is necessary to establish that there has been agreement between the parties .In consequence, it must in general be shown that an offer was made by one party(called the offeror )which was accepted by the other party(called the offeree).i Offer is one of the elements that make for a valid contract, and is the main focus of our lesson.there are six elements to a contract. These elements include, offer, acceptance, consideration, capacity, form a contract Offer Offer is an announcement of a person willing to...
Words: 5381 - Pages: 22
...are contracts. This validity of an enforced able agreement depends upon whether the agreement satisfies the essential requirements laid down in the acts. Section 10 lays down that ‘all the agreement are contracts if they are made by the free consent of the parties competent to contract for a lawful object and are not hereby expressly declared to the void’. The following are the essentials: a) Agreement: An agreement which is preliminary to every contract is the outcome of offer and acceptance. An offer to do or not to do a particular act is made by one party and is accepted by the other to whom the offer is made the we say that there is meeting of the mind of the parties. Such a position is know as consensus ad idem. b) Free consent: The parties should agree upon the same thing in the same sense and their consent should be free from all sorts of pressure. In other words it should not be caused by coercion, undue influence, misrepresentation, fraud or mistake. c) Contractual capacity: The parties entering into an agreement must have legal competence. In other word they must have attained the age of majority should be of sound mind and should be disqualified under the law of the land. A contract entered into between the parties having no legal capacity is nullity in the eyes of laws. d) Lawful consideration: There must be consideration supporting every contract. Consideration means something in return for something. It is the price for the promise. An agreement not supported by...
Words: 12221 - Pages: 49
...averaging 5.2% per annum over the last five years. Although Ruritania does not have a long tradition of democracy, Governments have been democratically elected for the last twenty years and new elections are due in Ruritania in approximately nine months’ time. There are two major political parties in Ruritania and recent opinion polls suggest that the present Government currently enjoys a 7% lead over the other major party. This opinion poll lead has remained reasonably stable for the last eight months. The other major party is also committed to democratic principles and a market based economy although, if elected, it is likely that they would increase both corporate and personal taxation to provide additional funding for their proposed social expenditure. The Crown (the currency of Ruritania) traditionally had a centrally managed exchange rate, but the Ruritanian Government allowed the Crown to float freely about twelve years ago. This, initially, resulted in a fairly large drop in the value of the Crown, but the Crown has enjoyed reasonable stability against major international currencies during the past three or four years. There has been persistent press speculation that the present Government will peg the Crown against a major international currency within the next few months. This would be a preparatory step prior to applying for inclusion in ERM 2 and, eventually, adopting the Euro as a full member of the Eurozone. Ruritania is...
Words: 536 - Pages: 3
...These are minors, individuals who are considered insane, drunks, and drugged up individuals. Capacity is meaning that the parties must have the legal ability to bind themselves to an agreement. If one party lacks capacity, the contract can be voidable. Minor can rescind a contract at any time or within a reasonable time after he reaches the age of majority. Minor can ratify a contract explicitly or impliedly when he reaches the age of majority, which means the minor can no longer rescind after ratification of the contract. Statutes say that minors can be liable for student loans, medical expenses, and other expenses. Minors are still liable for torts and crimes they commit. We learned about genuine assent and if a party lacks it, the contract is voidable. Usually, excuses to genuine assent are fraud, mistake, duress, undue influence, and unconscionability. We learned the two types of mistakes, bilateral and unilateral mistake. Relief is usually not given to unilateral mistake unless the other party knows of the mistake and takes advantage. Relief is given through a bilateral mistake because both parties were wrong about a basic fact in the agreement. We learned about duress, economic duress, undue influence, and unconscionability. We learned about wholly illegal contracts and partially illegal contracts...
Words: 1407 - Pages: 6
...Intermediate Accounting 2 Week 2 - Answer Marks will be awarded with logical argumentation and appropriate presentation of the answers. Answer to question 1 1 Definition of liability: A present obligation arising from a past event, the settlement of which is expected to result in an outflow of resources embodying benefits (i.e. usually a cash payment) There are two types of event creating obligation a) Legal – arises from the conclusion of legal contract, legislation or other operation of law. Example: repair warranty in sales agreement Constructive – derives from the actions of the enterprise where: Past actions – by an established pattern of past practice, published policies or a sufficiently specific current statement, the enterprise has indicated to other parties that it will accept certain responsibilities; and Created valid expectations – as a result, the enterprise has created valid expectations on the part of those parties that it will discharge those responsibilities For example: manufacturer has repaired any faulty items free of charge though there is no warranty in the sales agreement 3. Provision is a liability of uncertain timing or amount. It is accrued on the statement of financial position as it is probable it will be settled and a reliable estimate can be made of the amount that will be settled. Application of the recognition and measurement rules Future operating losses Do not meet the definition of liability and no provision should be made. Onerous contracts...
Words: 3699 - Pages: 15
...Definition & Essentials • Consideration – Definition & Essentials, Exceptions • Capacity of Parties • Free Consent • Quasi Contract • Legality of Object • Performance of Contract – Termination of Contract – Remedies for Breach of Contract Case Studies 1 The Indian Contract Act, 1872 The Indian Contract Act consists of the following two parts: General principals of the Law of Contracts – covered under section 1 to 75; the principles apply to all kinds of contracts irrespective of their nature Special kinds of contracts – covered under section 124 to 138 ; These special contracts are Indemnity & Guarantee (u/s124 to 147), Bailment & Pledge (u/s148 to 181) and Agency (u/s 182 to 238) in Chapter X – refer next Module 2) Section 76 to 123 – repealed by Sale of Goods Act, 1930 (refer Module 4) • • Section 239 to 266 – Chapter XI has been repealed by the Indian Partnership Act , 1932 ( not being covered separately; but major issues under different modules) The act does not affect any usage or custom of trade (u/s 1) – these prevail if reasonable & not illegal; an unique feature of this Act – most important branch of business law Some of the contracts not dealt with by the this Act are those related to Partnership, Sale of Goods (refer module 4), Negotiable Instruments (refer module 3), Transfer of Property, Insurance etc – separate Acts Under Contract Act, the parties to a contract make the law themselves, lay down a number of rights and duties (not infringing...
Words: 15475 - Pages: 62
...Soviet leader in 1924 1. Personality and background (Most Significant) Some colleagues were suspicious of Trotsky because of his relatively recent Menshevik past (1903-1917) – didn’t trust, he had already left Lenin once. Trotsky had a reputation for arrogance- Didn’t show up to funeral (1924) Some were wary of Trotsky because of his earlier role in commanding the Red Army- fear, still had some control over army therefore as a leader he would be too powerful. 2. Support (Major Reason) Trotsky did not have a strong Party base of support- Stalin had acquired a number of seemingly unimportant party positions (Secretary, Lenin Enrolment- 1924) in his rise to power but when combined = insight into party and control. Other rivals, like Stalin would not easily accept him as Lenin’s successor - Z+K questioned T loyalty Triumvirate (1924 Party Congress) was gaining support, while Trotsky attacked Party bureaucracy. Link to personality– trusting of Stalin even though he had support (funeral and testament). 3. Uncertainty (Key Reason) There was general uncertainty about the leadership, mainly because Lenin had not made a clear decision and there was no official ‘post’ or mechanism in place for electing a leader Lenin’s Testament (1922) said “He is personally perhaps the most capable man in the present C.C., but he has displayed excessive self-assurance and shown excessive preoccupation with the purely administrative side of the work” this meant that he didn’t publish...
Words: 1248 - Pages: 5
...Week 8 Assignment 2: Joshua Baker Leg100 Instructor: Prof. Madhavi Basnet-Karki Tuesday, November 26, 2013 In the summer of 2012, JPMorgan Chase, the biggest U.S. bank, announced trading losses from investment decisions made by its Chief Investment Office (CIO) of $5.8 billion. The Securities and Exchange Commission (SEC) was provided falsified first quarter reports that concealed this massive loss. Now we are going to discuss how administrative agencies like the Securities and Exchange Commission (SEC) or the Commodities Futures Trading Commission (CFTC) take action in order to be effective in preventing high-risk gambles in securities / banking, a foundation of the economy. The foundation of the United States economy is the banking industry and the American people need protection from the high risk gambles that these securities participate in. We need to understand how the Securities and Exchange Commission provides that protection. The SEC creates laws and rules that govern the banking industry in order to be effective in protecting the public. These regulations are derived from a simple and straightforward concept: all investors, whether large institutions or private individuals, should have access to certain basic facts about an investment prior to buying it, and so long as they hold it. In order to accomplish this, the SEC requires public companies to disclose meaningful financial and other information...
Words: 1679 - Pages: 7