Tamilnadu Samacheer Kalvi 11th Commerce Notes Chapter 29 Elements of Contract Notes
→ Law means a ‘set of rules’ which governs our behaviour and relating in a civilized society.
→ The English common law is the base for the development of Indian Contract Act 1872.
→ As per the Indian Contract Act, 1872, a “contract” is an agreement enforceable by law.
→ 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.
→ When the person to whom the proposal is made, signifies his assent thereto , the proposal is said to be accepted.
→ Every promise and set of promises forming consideration for each other is an agreement. In short, Agreement = Offer + Acceptance.
→ 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.
→ Consent means agreeing upon same thing in the same sense at the same time.
→ The agreement should be clear to the parities of the agreement.
→ The agreement should be such that it should be capable, of being enforced by law.
→ An agreement which is enforceable by law at the option of one or more parties but not at the option of the other or others is a voidable contract.
→ A contract is said to be tacit when it has to be inferred from the conduct of the parties.
→ A contract in which both the parties are yet to fulfil their obligations, it is said to be an executory contract.
→ A unilateral contract is a one sided contract in which only one party has performed his promise or obligation, the other party has to perform his promise or obligation.
→ A contract in which both the parties commit to perform their respective promises is called a bilateral contract.