Law of Contract

AGREEMENT Introduction An agreement is a mutual understanding between two or more persons about their relative rights and duties regarding past or future performances; a manifestation of mutual assent by two or more persons.   Definition Section 2(e) of the Contract Act defines an Agreement as follows; An agreement is every promise and every set … Read more

Preface Fraud is a misrepresentation that is made recklessly without belief in its truth to induce another person to act. Relevant Provisions Sections 17 and 19 of the Contract Act, of 1872 deal with fraud. Definition of Fraud According to Section 17 of the Contract Act, Fraud is defined as Fraud means and includes any … Read more

Preface Mistake in a contract is of two kinds. It may be a mistake of fact or a mistake of law. In both cases, the contract will become void.   Relevant Provisions Sections 45-53 except 48 of the Contract Act, of 1872 deal with the mistake.   Meaning of Mistake Any intentional act or omission … Read more

Introduction Competency is the legal qualification, capacity, power, or fitness. It is the mental ability to understand the nature and effects of one’s acts. In the law of contract, competency means the eligibility or qualification of the parties entering into a contract.   Relevant Provisions Sections 10 and 11 of the Contract Act, of 1872 … Read more

Preface An agreement turns into a contract when it becomes enforceable at law. A contract is usually an exchange of promises between two or maybe more persons. It results in an obligation to do or refrain from doing a particular act.   Relevant Provision Sections 2(h), 10, 11, 14, 17, and 23 of the Contract … Read more

Preface An agreement whose object or consideration is unlawful is considered void. A contract is always based on an agreement. An apparent agreement is not always a real agreement. One party may have deceived the other party or in some other way, there be no genuine consent. The parties may be laboring under a mistake … Read more

Introduction Contingent contracts are those types of contracts that depend on the happening or not happening of a future uncertain event. Here, we will see the situations when these agreements are enforced and when they become void, hence not enforceable by law.   Relevant Provisions Sections 31-36 of the Contract Act, 1872.   Meaning The … Read more

Introduction Appropriation of payments is the payment of a debt either in the sequence in which it is received or in any other recognized way. Sometimes, a debtor has to pay several debts to the same creditor and makes payment. Here, the question arises as to which of these, payment is to be applied. Sections … Read more

Introduction When one of the contracting parties refuses or fails to perform his part or obligation which he has promised to perform, is a breach of contract. A breach may be one by non-performance, by repudiation, or by both. Every breach gives rise to a claim for damages & may also give rise to other … Read more

Introduction Indemnity means a promise to save another harmless from loss caused as a result of a transaction entered into the instance of the promisor. On the other hand, a contract of Guarantee is a contract to perform the promise or discharge the liability of a third person in case of his default. Both terms … Read more

Introduction An agency is a relationship between two parties in business dealings in which one person acts as a representative to the other. The purpose is to create contractual relations between the other and the third person. An agency can be created to perform any act which the creator of the agency himself could lawfully … Read more

Introduction Bailment is such a relationship between two parties in which the personal property of one party goes into the possession of another party temporarily.  A few examples of bailment include delivering a car, mobile, watch, or other valuable items to some friends. Delivering gold to a goldsmith for making ornaments, and delivering garments to … Read more

Introduction Unpaid Sellers are dealt with in Chapter V of the Sale of Goods Act 1930. In a contract of sale, the seller is always under an obligation to deliver the goods and the buyer has to pay for it. If the buyer does not pay for it, the seller will be known as an … Read more

Introduction All the transactions relating to a business taking place between buyers and sellers are governed by the Sale of Goods Act 1930. It was initially a part of the Contract Act of 1872. But was later repealed and transformed into a separate law that governed contracts of sale. Section 4 of the Sale of … Read more

Introduction Conditions and warranties are some of the most important terms that are used during the sale of goods. A contract is concerned with the quality and price of goods, the mode in which payment will be made, the delivery of goods, the time of performance, and the place where the goods are to be … Read more