![June 27,
2019
CONTRACTACT: STUDY NOTES FOR LLB STUDENTS
C O M I P L E D A N D W R I T T E N B Y Page 2
DEFINITIONS (Sec 2)
Offer(i.e. Proposal) [section 2(a)]:-When one person signifies to another his willingness to
do or to abstain from doing anything, with a view to obtaining the assent of that other person
either to such act or abstinence, he is said to make a proposal.
Acceptance 2(b):- When the person to whom the proposal is made, signifies his assent there
to, the proposal is said to be accepted.
Promise 2(b) :- A Proposal when accepted becomes a promise. In simple words, when an
offer is accepted it becomes promise.
Promisor and promise 2(c) :- When the proposal is accepted, the person making the
proposal is called as promisor and the person accepting the proposal is called as promisee.
Consideration 2(d):- When at the desire of the promisor, the promisee or any other person
has done or abstained from doing something or does or abstains from doing something or
promises to do or abstain from doing something, such act or abstinence or promise is called
a consideration for the promise.
Price paid by the one party for the promise of the other Technical word meaning QUID-
PRO-QUO i.e. something in return.
Agreement 2(e) :- Every promise and set of promises forming the consideration for each
other.
In short, agreement = offer + acceptance.
Contract 2(h) :- An agreement enforceable by Law is a contract.
Void agreement 2(g):- An agreement not enforceable by law is void.
Voidable contract 2(i):- An agreement is a voidable contract if it is enforceable by Law
at the option of one or more of the parties (i.e. the aggrieved party)
Void contract: - A contract which is not to be enforceable by Law
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introduction to contract act defintions
- 1. June 27, 2019 CONTRACTACT: STUDY NOTES FOR LLB STUDENTS C O M I P L E D A N D W R I T T E N B Y Page 1 CONTRACT ACT: INTRODUCTION AND DEFINITIONS Law means a ‘set of rules’ which governs our behaviors and relating in a civilized society. So there is no need of Law in a uncivilized society. Why Should One Know Law? One should know the law to which he is subject because ignorance of law is no excuse. Short Title Extent and commencement Prior to this English law of contract was followed in India. It has XI chapter. Law of contract creates jus in personem and not in jus in rem. The Contract Act consists of the following two parts: (a) General principal of the Law of Contract. (b) Special kinds of contracts. The general principals of the Law of Contract are contained in Sections 1 to 75 of the Contract Act. These principles apply to all kinds of contracts irrespective of their nature. Special contracts are contained in Sections 124 to 238 of the Contract Act. These special contracts are Indemnity, Guarantee, Bailment, pledge and Agency. Important Note: The contract Act 1872 is applicable to whole Pakistan except the state of Jammu & Kashmir.
- 2. June 27, 2019 CONTRACTACT: STUDY NOTES FOR LLB STUDENTS C O M I P L E D A N D W R I T T E N B Y Page 2 DEFINITIONS (Sec 2) Offer(i.e. Proposal) [section 2(a)]:-When one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other person either to such act or abstinence, he is said to make a proposal. Acceptance 2(b):- When the person to whom the proposal is made, signifies his assent there to, the proposal is said to be accepted. Promise 2(b) :- A Proposal when accepted becomes a promise. In simple words, when an offer is accepted it becomes promise. Promisor and promise 2(c) :- When the proposal is accepted, the person making the proposal is called as promisor and the person accepting the proposal is called as promisee. Consideration 2(d):- When at the desire of the promisor, the promisee or any other person has done or abstained from doing something or does or abstains from doing something or promises to do or abstain from doing something, such act or abstinence or promise is called a consideration for the promise. Price paid by the one party for the promise of the other Technical word meaning QUID- PRO-QUO i.e. something in return. Agreement 2(e) :- Every promise and set of promises forming the consideration for each other. In short, agreement = offer + acceptance. Contract 2(h) :- An agreement enforceable by Law is a contract. Void agreement 2(g):- An agreement not enforceable by law is void. Voidable contract 2(i):- An agreement is a voidable contract if it is enforceable by Law at the option of one or more of the parties (i.e. the aggrieved party) Void contract: - A contract which is not to be enforceable by Law .
- 3. June 27, 2019 CONTRACTACT: STUDY NOTES FOR LLB STUDENTS C O M I P L E D A N D W R I T T E N B Y Page 3 Difference Between Void and Voidable Contract Matter Void contract Voidable contract Definition It means contract which cease to be enforceable. It means an agreement enforceable by law by one or more parties. Nature Valid when made subsequently becomes unenforceable. It remains voidable until cancelled by party. Rights or remedy No legal remedy. Aggrieved party has remedy to cancel the contract. Performance of contract Party can’t demand performance of contract If aggrieved party does not cancel it within reasonable time, performance can be demanded. Distinction between Contract & Agreement Basis Contract Agreement 1. Section : 2. Definition : 3. Enforceability : 4. Interrelationshi p Sec. 2(h) A contract is an agreement enforceable by law. Every contract is enforceable A contract includes an agreement. The scope of a contract is limited, as it includes only commercial agreements. Sec. 2(e) Every promise or every set of promises forming consideration for each other is an agreements. Every promise is not enforceable. An agreement does not include a contract.
- 4. June 27, 2019 CONTRACTACT: STUDY NOTES FOR LLB STUDENTS C O M I P L E D A N D W R I T T E N B Y Page 4 5. Scope : 6. Validity : 7. Legal : Obligation Only legal agreements are called contracts. Every contract contains a legal obligation. Its scope is relatively wider, as it includes both social agreement and commercial agreements. An agreement may be both legal and illegal. It is not necessary for every agreement to have legal obligation.