merchantile law presentation - unitedworld school of business

7/28/2019 Merchantile Law Presentation - Unitedworld School of Business

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Nature and Type of Contracts


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Contract

Section 2(b) defines promise in these words

when the person to whom the proposal is made

signifies his assent thereto, the proposal is said

to be accepted. Proposal when accepted ,becomes a promise.

Section 2(e) defines agreement as every

promise & every set of promises, forming theconsideration for each other.

Section 2(h) of the act defines the term contract

as an agreement enforceable by law.


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Essential elements of a valid contract

Proposal and acceptance

Consideration-lawful consideration with a lawful object

Capacity of parties to contract-competent parties

Free consent

An agreement must not be expressly declared to be void

Writing and registration, is so required by law

Legal relationship

Certainty

Possibility of performance

Enforceable by law


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Void contract

It is a contract without any legal effect and

cannot be enforced in a court of law.

Section 2(j) defines a void contract as a contract

which ceases to be enforceable by law becomes

void when it ceases to be enforceable

Eg- Agreement in restraint of marriage

Agreement in restraint of trade


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Contingent contract

The contingent contract is all about happening or not happeningof some future uncertain event .

Rules

Contingent contract depends on the happening of an uncertainfuture event , cannot be forced until the event has happened

If a contingent contract depends for its performance on doing ofact by the promissory, the contract becomes void where thepromissory makes the performance impossible

If a contingent contract contemplates doing of a thing in aspecified event ,happens within a fixed time .It becomes void ifthe event does not happen within the time.

If a contingent contract contemplates to do anything if animpossible event happens, it is void.


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Unlawful/Illegal contract

It is a contract which the law forbids to bemade. The court will not only enforce such acontract but also connected contracts. Allillegal agreements are void but all voidcontracts are not necessarily illegal.

E.g:

Contract to commit crime

Contract to destroy public property


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Uncertain agreement

According to Sec 29 agreements, themeaning of which is not certain, or capable ofbeing made certain, are void.

Through this sec the law aims to ensure thatthe parties to a contract should be aware ofthe precise nature and scope of their naturalrights and obligations under the contract.


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Wagering Agreement

It is an agreement involving payment of asum of money upon the determination of anuncertain event.

The essence of a wager is that each sideshould stand to win or lose, depending on theway an uncertain event takes place.


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Bibliography

Mercantile law- CPT-ICAI

Business law for management-

K.R.BULCHANDANI

Element of mercantile law- N.D.KAPOOR


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Campus Overview

907/A Uvarshad,GandhinagarHighway, Ahmedabad 382422.

Ahmedabad Kolkata

Infinity Benchmark, 10thFloor, Plot G1,Block EP & GP,Sector V, Salt-Lake,Kolkata 700091.

Mumbai

Goldline Business CentreLinkway Estate,Next to Chincholi FireBrigade, Malad (West),Mumbai 400 064.


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Thank You

merchantile law presentation - unitedworld school of business

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