Page 8 - DMGT407Corporate and Business Laws

Gopika Juneja, Profession University Unit 1: Laws of the Contract

Unit 1: Laws of the Contract Notes

CONTENTS
Objectives
Introduction

1.1 Meaning of the Contract
1.2 Indian Contract Act, 1872
1.3 Essentials of the Contracts
1.4 Classification of the Contracts

1.5 Proposal (or Offer) and Acceptance [Ss.3-9]
1.5.1 Modes of Making an Offer
1.5.2 Difference between Offer and Invitation to Offer
1.5.3 Revocation of Offer
1.5.4 Special Terms in a Contract
1.5.5 Acceptance of an Offer

1.6 Completion of Communication of Offer and Acceptance [S.4]
1.7 Consideration [Ss.2(d), 23-25 and 185]
1.7.1 Meaning of Consideration
1.7.2 “No Consideration, No Contract” [Ss.10 and 25]
1.7.3 Rules regarding Consideration

1.7.4 Unlawful Consideration and Object [Ss.23-24]
1.8 Capacity to Contract [Ss.10-12]
1.8.1 Persons who are Competent to Contract
1.8.2 Capacity of a Minor to Enter into a Contract
1.8.3 Mental Incompetence Prohibits a Valid Contract
1.8.4 Alien Enemy (Political Status)

1.8.5 Foreign Sovereigns and Ambassadors (Political Status)
1.9 Summary
1.10 Keywords
1.11 Review Questions
1.12 Further Reading

Objectives

After studying this unit, you will be able to:
Recognize the meaning of contract;
Describe offer and acceptance of the contract;

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