Category: Essays

Important rules relating to an offer, as provided in the Indian contract act, 1872 are listed below: Rules (1) An offer must be capable of creating legal relations: An offer must be such that when accepted it will result in a valid contract. A mere social invitation cannot be regarded as an offer, because if such an invitation is accepted it will not give rise to any legal relationship. Image Source: laszlolaw.com (2) The offer must be distinguished from mere statement of intention: The terms of an offer should be clear so that there is no confusion whether; it is a valid offer or a mere statement of intention. Sometimes, a person declares that he has the intention to do something; this does not amount to an offer. ADVERTISEMENTS: Such…

Difference between Executed and Executory Types of Contracts are given below: 1. Executed Contract: A contract in which both the parties performed their respective promises. When a contract has been completely performed, it is termed as executed contract, i.e. it is a contract where, under the terms of a contract, nothing remains to be done by either party.A contract may be executed at once i.e. at the time when it is made. For example, in case of cash sales, the contract is executed at once. It may become executed in some future date when the terms of the contract are carried out. Image Source: guerrillafreelancing.com 2. Executory contract: A contract in which the promises of both the parties have yet to be performed. Thus, executory contract is that where under…

Most important kinds of offer are listed below: 1. Express Offer: When an offer is made by words spoken or written it is called an express offer. Image Source: bizzyweb.com 2. Implied Offer: When an offer is implied by conduct of parties or circumstances of the case it is called an implied offer. 3. General Offer: When an offer is made to the public at large it is called general offer. This offer may be accepted by anyone. For example, an offer to give reward to anybody who finds the lost horse is a general offer.Though the general offer is made to the public at large, the contract in this case comes to an end when any person acts upon the conditions of the offer. 4. Specific Offer: Specific offer…

Usually students are fully wired upon the day before an exam. But I have always bucked the trend. When others are burning the midnight oil you will find me chilling out at a cinema hall or an ice cream parlor. I don’t believe in last minute cramming for it makes me forget all that I have managed to learn with great difficulty until then. So whether I have finished the portions or not, I close my books with a big bang and chalk out stress-busting programs for the day. This ensures that I have a clear mind on the day of the exam. I also manage to get a good night’s sleep the night before the exam. Image Source : brocku.ca ADVERTISEMENTS: I have found that the great majority of…

Main essentials of a valid acceptance are mentioned below: 1. Acceptance must be given by the person to whom the proposal is made: An acceptance to be valid must be given only by a person to whom offer has been given. In other words, acceptance must move from the offeree and no one else. Image Source: 3.bp.blogspot.com 2. Acceptance can be given only when the acceptor has the knowledge of the offer: Acceptance therefore cannot be given without the knowledge of offer, as in case of Lalman Shukla v Gauri Dutt. 3. The acceptance must be absolute and unconditional: It is another important essential element of a valid acceptance. A valid contract arises only if the acceptance is absolute and unconditional. It means that the acceptance should be in total…

Essentials and legal rules for misrepresentation are explained below: Essentials and Legal Rules 1. The misrepresentation must be of material facts: It is an important and essential element of misrepresentation that the false statement must be of material facts.A mere expression of one’s opinion is not a statement of facts. It will be interesting to know that there is a lot of difference when the seller states that his property is worth one lakh of rupees, and when he states that he paid one lakh of rupees for the property. Image Source: designtekplastics.com ADVERTISEMENTS: The first is the opinion which the buyer may adopt if he so wishes. And the second is a statement of fact, which if false, makes the contract voidable. 2. The misrepresentation must be false, but…

Important Reciprocal promises are as follows:According to Sec. 2(f), “Promises which form the consideration or a part of consideration for each other are called reciprocal promises.”An agreement may consist of either (a) a promise supported by consideration given, or (b) a promise supported by another promise. ADVERTISEMENTS: In the latter case, when an agreement is supported by another promise, it will be a reciprocal promise. Thus, in reciprocal promises each party gives a promise for a promise. Reciprocal promises are of the following types:- 1. Mutual and independent reciprocal promise: When each party performs his promise independently and irrespective of the fact whether the other party has performed, or is willing to perform his promise or not, the promises are mutual and independent. Example: X agrees Y to supply milk…

Breach of contract is of following two types:1. Actual Breach ADVERTISEMENTS: 2. Anticipatory Breach 1. Actual Breach of Contract: It occurs when on the due date of performance or during the performance a party fails to perform his obligations. Thus, the actual breach of contract may be discussed under the following two heads:- Image Source: livelaw.in (I) Actual breach of contract on the due date of performance: Sometimes, on the due date of performance, one party fails to perform his obligations. In such cases, the other party is discharged from the performance of his obligations and can hold the guilty party liable for the breach of contract.Example: ADVERTISEMENTS: X agreed to sell his car to Y on 1st June. But on 1st June X refused to sell the car to…

Important remedies those are available to an aggrieved party on the breach of a contract are:1. Rescission of the Contract2. Claim for Specific Performance of the Contract ADVERTISEMENTS: 3. Claim for Injunction4. Claim for Quantum Merit, and5. Claim for Damages. 1. Rescission of the Contract: When there is breach of contract by one party, the other party may rescind the contract and thus, is absolved from all his obligations under the contract. Image Source: hawaiiesquire.com ADVERTISEMENTS: Example:X promises Y to supply him a scooter on 27th, and Y promises to pay its price on receipt of the scooter. X does not supply the scooter on 27th, Y is absolved from paying its price. Rules for Rescission: In this connection, there are two rules, viz,- ADVERTISEMENTS: (i) Sec. 65:When a party…

Sec. 129 of the Act defines continuing guarantee as, “a guarantee which extends to a series of transactions.” Generally, indefinite numbers of transactions are dealt in continuing guarantee. Such guarantee may be in respect of a future transaction during fixed period for example for one year. The features of continuing guarantee are: 1. The guarantee is not exhausted by the first advance or credit or supply upto the pecuniary limit. ADVERTISEMENTS: 2. Revocation can be made by notice to the creditor in relation to future transactions.3. Continuing guarantee is terminated by the death of the surety as regard the future transactions. epawnmarket.com epawnmarket.com Revocation of Continuing Guarantee: Following are the circumstances in which the continuing guarantee can be revoked:- 1. By notice: According to Sec. 130, the continuing guarantee may…