2. Introduction to Laws
• What is Law?
• Blackstone : “Law is a rule of civil conduct,
commanding what is right and prohibiting what is
wrong”.
• In the words of Salmond, a great Jurist, “It is a set
of principles applied in the administration of
Justice”.
• Law: The rules and regulations made and enforced
by a society’s government to mange the conduct
of the people within the said society.
• The study of law-Jurisprudence.
3. Meaning of Law
• Every society that has ever existed has recognized
the need for laws (both written and unwritten).
This does NOT mean all Laws are “fair”, and “just”.
• A democratic system of Govt. cannot function
unless the laws are respected by the people they
are intended to regulate.
Society must be based on the “rule of law”.
Rules should be known in advance and created
democratically.
Nobody is above the law (Ex: Nixon).
6. Connecting Law and society
• Law is multi-centered and takes many forms .
• It is not always an instrument of state power.
• There are many sources/lawyers of law in
Society i.e., informal law, traditional law, etc.
which all exist in a constant state of dynamic
tension characterized by resistance and
accommodation.
• Understanding legal consciousness requires an
appreciation of the over-lapping fields of law.
8. Agreement
• Every promise and set of promises that forms
the consideration for each other is an
agreement.
• Agreement subject to ratification by others
who are not parties to it is not a conclusive
contract.
• All contracts are agreements.
• But every agreement is not a contract.
12. Intention to create legal relation
• Business Agreements : The parties are presumed
to have intended to enter into legal relationship.
Taking house on rent.
Selling goods.
• Social, domestic or family agreement : The
parties are presumed not to have an intention to
enter into legal relationship.
Inviting friends for social gatherings.
Asking Mom to clean your bedroom.
13. Lawful Consideration
• Agreement must be supported by
consideration.
• Consideration means something in return i.e.,
both the parties must get something in return
for the promise.
• If the promise is not supported by
consideration, it will be a bare promise, and
hence not enforceable by law.
• Consideration must be lawful, real and not
illusionary.
15. Free Consent
• Consent: Two or more persons are said to consent
when they agree upon the same thing in the same
sense.
• Free consent: Consent is said to be free when it is
not caused by coercion or undue influence or fraud
or misinterpretation or mistake.
• Consent= Consensus ad idem : Agreeing upon the
same things in the same sense.
• Consent is said to be free when it is not caused by
any one of the following:
1.Coercion 2.Undue-influence 3.Misinterpretation
4. Fraud 5.Mistake
16. Lawful object
• For a Valid Contract object must be lawful.
• It has nothing to do with consideration.
• It is just for the design or purpose of a contract.
• Object is unlawful if:
It is forbidden by law.
It is fraudulent.
It involves injury to a person or property.
The court regards to immoral or opposed to public
policy.
It is of such nature that if permitted it would defeat
the provisions of any law.
17. Certainty of meaning
• The agreement must be certain and not vague
or indefinite.
• The terms and conditions of a contract must
be clear, complete and certain.
• If the terms are uncertain , the agreement is
void.
• As a general rule, the courts will not enforce
vague or incomplete agreements.
18. Possibility of performance
• Agreement to do an impossible act ,can’t be
enforced.
• Law doesn’t compel to do what is impossible.
• A valid contract must be capable of being
performed.
• An agreement to do an impossible act is void.
• If the act is legally or physically impossible to
perform , the agreement can’t be enforced by
law.
19. Not declared to be void
• Void agreement is an agreement which is not
enforceable by law.
• It implies the rights and liabilities of which can’t be
enforced in the court.
• It has no legal significance from the beginning.
• Although an agreement contains all the elements
yet, certain agreements are declared illegal or void
agreements such as:
1.Restraining marriage 2.Restraining trade
3. Restraining legal proceedings
4. Wagering agreements
20. Legal formalities
• A contract may be made by words spoken or
written.
• As regards the legal effects, there is no
difference between a contract in writing and a
contract made by word of mouth.
• It is however, in the interest of the parties that
the contract should be in writing.
• In some other cases, a contract, besides being a
written one ,has to be registered.
21. Legality of Contracts…1
• For a contract to be binding , it must be legal.
• Contracts can be illegal or void at both statute
and common law.
• Statute Law : The law made by the
Commonwealth, State and Territory
Parliaments.
• Common Law : The law made by judges in the
exercise of both common law and equitable
jurisdiction.
22. Legality of Contracts…2
• There are basic elements that are mandatory
to be in an agreement and are legally
enforceable, which include the following:
1. Adequate consideration
2. Legality
3. Capacity
4.Mutual assent (with a valid offer and
acceptance)
