Page 8 - DCOM103_COMMERCIAL_LAW
P. 8

Manpreet Kaur, Lovely Professional University                                     Unit 1: Law of Contract



                                 Unit 1: Law of Contract                                        Notes



             CONTENTS

             Objectives
             Introduction
             1.1  Agreement
             1.2  Contract


             1.3  Classification of Contracts
             1.4   Essential Elements of Valid Contract
             1.5   Distinction between Void Agreement and Voidable Contract
             1.6   Agreements against Public Policy (Ss.26-28)
                 1.6.1  Agreement in Restraint of Trade
                 1.6.2  Restraint of Legal Proceedings (S.28)

                 1.6.3  Uncertain or Ambiguous Agreements (S.29)
                 1.6.4  Wagering Agreements (S.30)
             1.7  Summary
             1.8  Keywords

             1.9  Self Assessment
             1.10 Review Questions
             1.11 Further Readings

          Objectives

          After studying this unit, you will be able to:
               Explain meaning of contract

               Discuss essential of valid contract

               Describe classification of contract
          Introduction

          As you all know that we enter into contracts every day. Some of these are made consciously, for
          example, purchase or sale of a share of a company or a plot of land. Sometimes we do not even
          realise that we are making a contract, e.g., hiring a taxi, buying a book, etc. In any case, a contract,
          howsoever made, confers legal rights on one party and subjects the other party to some legal
          obligation. In the case of people engaged in business, they carry on business by entering into
          contracts. Thus, the business executives, corporate counsels, entrepreneurs, and professionals

          in different fields deal frequently with contracts. At times, they have to draft one such contract
          or scrutinize it or provide inputs to its making or even interpret it. Therefore, it is necessary for
          them to know what constitutes a contract. The law relating to contracts is contained in the Indian
          Contract Act, 1872. For business executives, contract law is tremendously signifi cant because it
          underlies or is related to all major areas of law affecting business.




                                           LOVELY PROFESSIONAL UNIVERSITY                                     1
   3   4   5   6   7   8   9   10   11   12   13