20 types of contracts There are many types of contracts. 26 The Fraud Act The Fraud Act is a law that requires certain types of contracts to be recorded in writing before they are considered legally enforceable. 9 IS A VOID CONTRACT THE SAME AS AN ILLEGAL CONTRACT? NO, NOT ALL ILLEGAL CONTRACTS ARE NULL AND VOID CONTRACTS, BUT NOT ALL NULL CONTRACTS ARE ILLEGAL CONTRACTS. 5 Mutual consent Mutual consent is the final product of a valid offer and acceptance. Also often referred to as “leaders` meeting” 24 I MAKE AN OFFER – “I WANT TO SELL MY HOUSE TO RS. 5 LAKHI MAKE AN OFFER – “I WANT TO SELL MY HOUSE FOR RS. 5 LAKH. IF ANYONE IS INTERESTED, THEY SHOULD SEND THE ANSWER TO. MOHAN REPLIES BY MAIL. IS THAT A VALID ASSUMPTION? NO – ACCEPTANCE ONLY HAD TO BE MADE BY (IT WAS A CONDITIONAL OFFER).
Ram Rama Sewa Sansthan Chapter 8—Introduction to Contracts – Classifications, Terminology and Education REED SHEDD PAGNATTARO MOREHEAD F I F T E N T H E D I T I O N McGraw-Hill/Irwin. 16 HOW MANY TYPES OF OFFERS CAN YOU NAME? GENERAL OFFER SPECIAL OFFER COUNTER-OFFER STANDING OFFER Ram Rama Sewa Sansthan 19 The object of the contract must be legal A contract involving illegal activities will not be enforced in court for obvious reasons. 17 I MAKE RAM AN OFFER TO BUY HIS HOUSE AT RSI, I MAKE RAM AN OFFER TO BUY HIS HOUSE AT RS. 5 LAKH, HE MAKES ANOTHER OFFER TO SELL THE HOUSE FOR RS. 6 LAKH. WHAT IS ITS OFFER? IS IT A CROSS-OFFER = NO IT IS A COUNTER-OFFER Ram Rama Sewa Sansthan 14 The termination of the power to accept a person`s power to accept may be terminated by: A revocation of the offer by the supplier A rejection of the offer by the recipient Passage of time Death or subsequent incapacity of a party Failure to comply with a requirement 15 An offer must be communicated. The terms and conditions of the offer must be communicated. Two identical offers (cross-offer) do not make a contract. Acceptance must be communicated. The adoption must be carried out in the prescribed form.
Ram Rama Sewa Sansthan 24 Enforceable and executed contracts A contract that has not yet been fully performed is a contract that has not yet been fully performed. A executed contract is a contract in which all required actions have been performed. 25 WHAT IS ACCEPTANCE? IF A PERSON SUBMITS HIS WILL/CONSENT TO THE OFFER TO ANOTHER PERSON (PARA. 2 (B)) Ram Rama Sewa Sansthan 33 CONSIDERATIONS? Must be at the request of the promising May be present future or past Does not need to be appropriate. Must be real Maybe to do something or not to do something Should be valuable It should be safe and legal Ram Rama Sewa Sansthan 5 INVALID CONTRACT? An agreement that is no longer legally enforceable. An agreement that is initially valid, but subsequently becomes null and void due to the impossibility of execution. An agreement that is null ab in initio from the outset is called “null ab in initio”. Secondly, we cannot use the term null contract.
Eg. An agreement with a minor. Article 2 (j) 21 I GIVE AN ADVERTISEMENT: “I HAVE A COMPUTER FOR SALE” IS THIS AN OFFER? THIS IS AN INVITATION TO Ram Rama Sewa Sansthan 32 WHAT IS THE QUID PRO QUO? AT THE REQUEST OF THE PROMISOR, THE PROMISOR OR ANOTHER PERSON HAS DONE OR OMITTED TO DO OR DOES OR REFRAINS FROM DOING SOMETHING OR PROMISES TO DO OR REFRAINS FROM DOING SOMETHING – THIS ACT/ABSTINENCE IS CALLED THE COUNTERPART OF PROMISES § 2 (D) Ram Rama Sewa Sansthan 20 ESSENTIAL CHARACTERISTICS OF AN OFFER? THE EXPRESS OFFER, EXPRESS OR IMPLIED, IS NOT AN INVITATION TO OFFER CERTAIN LEGAL RELATIONSHIPS PROVIDED FOR. THE OFFER DOES NOT HAVE TO BE COMMUNICATED ANY CLAUSE – THE NON-OBSERVANCE OF WHICH AMOUNTS TO AN AGREEMENT Ram Rama Sewa Sansthan 22 I MAKE AN OFFER: “IF YOU DON`T ANSWER, I GUESS YOU WILL BUY MY HOUSE IN RS. 5 LAKH » IS THIS AN OFFER? NO Ram Rama Sewa Sansthan 31 Termination of Offer Delay elapsed/reasonable death of applicant Non-compliance with a condition Rejection (by the supplier, may be explicit or implied) Destruction of the article Revocation (withdrawal at any time before the letter is transmitted, not in England) Ram Rama Sewa Sansthan 17 Consideration The essential reason for a contract; A person gives up something of value in exchange for receiving something of value through the contract. 23 I MAKE AN AD THAT I`M GOING TO SELL MY HOUSE FOR RSI MAKE AN AD THAT I`M GOING TO SELL MY HOUSE FOR RS. 5 LAKH, TO THE PERSON WHO HELPS ME IN MY DISPUTE. IS THIS AN OFFER? YES – THE OFFER CAN ALSO BE CONDITIONAL.
Ram Rama Sewa Sansthan 41 When can third parties sue Agrement? Beneficiary in a trust case A female member in the case of HUF grants for the payment of wedding expenses In case of legal forfeiture by acknowledgement If performance under the contract has been assigned to another person Ram Rama Sewa Sansthan 35 Personal life A person who is not a party to the contract cannot assert any rights under the contract, even if the contract may be in his favor. This person is known as a stranger to the contract. Ram Rama Sewa Sansthan 2 What is a contract? The legal definition of a contract is a promise (or set of promises) that, if breached by one party, gives the other party a remedy. Art. 11 Notification of acceptance The person accepting the offer (the consignee) must inform the supplier of such acceptance. 6 Offer An offer is an expression by a party (usually called a seller) that it is willing to enter into an agreement 22 Unilateral contracts Unilateral contract: A contract in which one party makes a promise in exchange for an act of the other party. 10 ILLEGAL CONTRACT An agreement is illegal if it violates land law. An agreement to commit fraud and crime. Ram Rama Sewa Sansthan 28 I SEND AN OFFER TO JITENDRA BY MAIL SEND AN OFFER TO JITENDRA BY MAIL. I SEND IT ON JULY 1, BUT JITENDRA RECEIVES IT ON JULY 10. WHEN DID I MAKE AN OFFER? JULY 10 Ram Rama Sewa Sansthan 9 How long is an offer valid for? An offer expires on its own terms or after a reasonable period of time.
A “reasonable time” depends on all the circumstances of the case. Speakers: Barry Chin (錢志庸) Lawyer (HK, UK), Engineer (HK, Canada, UK) B.Sc., MBA, LL.B. (Hons), PCLL C.Eng, P.Eng, RPE, MIEE, MIMechE, MHKIE, MAPEO. Chapter 11 Formation of Traditional and Online Contracts 45 THANK YOU Sachin Raj Singh Chauhan Exploring the World 18 Capacity If a person has legal “capacity”, it simply means that they have the legal authority to enter into binding legal agreements.
