Scribd Logo
Upload

Welcome to Scribd!

  • 47 views

    Class Note On Contract Law

    Uploaded by

    Mustafizur Rahman Deputy Manager
    This document provides a summary of key concepts in contract law: 1) It outlines the objectives and types of contract law, including general laws around formation, performance, and breach of contracts as well as specific types like contracts of indemnity. 2) It defines a contract as an agreement enforceable by law and lists the essential elements for an agreement to be considered a contract, including competent parties, consideration, and legal relationship between parties. 3) It describes different types of contracts based on mode of creation, enforceability, and performance status, as well as circumstances that can cause a contract to become void.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Class Note On Contract Law

    Uploaded by

    Mustafizur Rahman Deputy Manager
    47 views11 pages
    This document provides a summary of key concepts in contract law: 1) It outlines the objectives and types of contract law, including general laws around formation, performance, and breach of contracts as well as specific types like contracts of indemnity. 2) It defines a contract as an agreement enforceable by law and lists the essential elements for an agreement to be considered a contract, including competent parties, consideration, and legal relationship between parties. 3) It describes different types of contracts based on mode of creation, enforceability, and performance status, as well as circumstances that can cause a contract to become void.

    Original Description:

    Law

    Original Title

    Class Note on Contract Law

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document provides a summary of key concepts in contract law: 1) It outlines the objectives and types of contract law, including general laws around formation, performance, and breach of contracts as well as specific types like contracts of indemnity. 2) It defines a contract as an agreement enforceable by law and lists the essential elements for an agreement to be considered a contract, including competent parties, consideration, and legal relationship between parties. 3) It describes different types of contracts based on mode of creation, enforceability, and performance status, as well as circumstances that can cause a contract to become void.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    47 views11 pages

    Class Note On Contract Law

    Uploaded by

    Mustafizur Rahman Deputy Manager
    This document provides a summary of key concepts in contract law: 1) It outlines the objectives and types of contract law, including general laws around formation, performance, and breach of contracts as well as specific types like contracts of indemnity. 2) It defines a contract as an agreement enforceable by law and lists the essential elements for an agreement to be considered a contract, including competent parties, consideration, and legal relationship between parties. 3) It describes different types of contracts based on mode of creation, enforceability, and performance status, as well as circumstances that can cause a contract to become void.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 11

    Class note on law of contract

    Class Note on
    Law of Contract

    Objects of Contract Act


    (a) To define certain part of law of contract.
    (b) To amend certain part of law relating to contract.

    Types of contract law


    (a) General laws relating to contract
    1) Formation of contract
    2) Performance of contract
    3) Breach of contract and remedies
    (b) Laws relating to some particular types of contract.
    1) Contract of indemnity and guarantee
    2) Contract of bailment and Pledge
    3) Contract of Agency

    Definition of Contract
    An Agreement which is enforceable by law is a contract. There are two
    agreement legal points of view. Such as
    (a) An agreement enforceable by law
    (b) An agreement not enforceable by law

    Essential requisites/elements/requirements or criteria of an agreement


    (a) Parties (offeror, offeree and acceptor)
    (b) Communication (express, implied, tacit, written and verbal)
    (c) Consideration (without consideration a contract is void. Consideration
    must be legal.)
    (d) Legal relationship (contract creates legal relationship between offeror and
    offeree or acceptor)
    (e) Capacity or competency of parties (sound mind and majority: parties
    must be competent to enter into contract))

    Usually unsound mind, sometimes sound mind, when contract is formed he was
    sound mind, contract is valid.
    Usually sound mind, sometimes unsound mind, when contract is formed he was
    unsound mind, contract is void.
    1
    Class note on law of contract

    Minor’s contract is void ab initio.

    All contracts are agreement but all agreements are not contract.

    Types of contract as regards mode of creation (S-9)


    (a) Express contract
    (b) Implied contract
    1) Written contract
    2) Oral contract

    Types of contract as regards the enforceability and validity


    (a) Valid contract: A valid contract is a contract which fulfills all the
    requirements of a contract.
    (b) Voidable contract: If a contract is vitiated by coercion, fraud, undue
    influence or misrepresentation is a voidable contract.
    (c) Void contract: A void contract is a contract which does not fulfill all the
    requirements of a contract.

    Types of contract as regards the enforceability and validity


    (a) Executed contract
    (b) Executory contract

    Circumstances when a contract becomes void

    Difference between offer and invitation to offer


    Offer is the willingness to do something or refrain from doing something. Offer
    creates legal relationship. But invitation to treat does not create legal
    relationship. Display of goods is an example of invitation to treat. Invitation to
    treat may become offer after negotiation. Examples of invitation to treat are
    tender, advertisement, display of goods. Advertisement with additional
    information or statement is an offer.

    2
    Class note on law of contract

    Rules regarding a valid offer or proposal


    1. Invitation of creating legal relationship.
    2. Offer must be communicated to offeree.
    3. Offer must be definite
    4. An offer may be made to a specific person, a class of persons or the world
    at large.
    5. Offer may be conditional or unconditional.
    6. Acceptance must be accepted as it is. Acceptance cannot be conditional. A
    conditional acceptance is a counter offer.
    7. Offer may be express or implied
    8. There must be promise to perform.
    9. Mere offer is not an offer.
    10.Primary discussion is not offer.
    11.Intention of creating legal relationship.
    12.Offer may for a particular /specific time period.
    13.There must be legal binding in the offer.
    14.Offer may be revocable.
    15.Offer and invitation to treat is different.

    List of void contracts (Void ab initio)


    1. Contract by incapable person
    2. Unlawful consideration and objects. (s-23)
    3. Agreement made under a mistake (s-20)
    4. Agreement without consideration. (s-25)
    5. Agreement to do impossible things.(s-56)
    6. Agreement for uncertainty. (s-29)
    7. Agreement in restraint of legal proceedings. (s-28)
    8. Agreement in restraint of marriage. (s-26)
    9. Agreement in restraint of trade. (s-27)
    10.Agreement by way of wager. (s-30)

    Doctrine of supervening impossibility or doctrine of frustration

    Definition of Offer (s-2-a)

    Revocation of offer

    3
    Class note on law of contract

    Acceptance of an offer (s-7)

    Who can accept offer?


    (a) Sound mind
    (b) Majority
    (c) No third party

    Rules regarding acceptance


    1. Acceptance must be unconditional. Offer must be accepted as it is.
    2. Acceptance must come to the knowledge of the offeror.
    3. Mere acceptance is not an acceptance.
    4. Procedure of accepting offer promised by offeror must followed by the
    acceptance.
    5. Acceptance must be informed in reasonable format.
    6. Acceptance may be by act or by conduct.
    - Acceptance must be informed to offeror.
    - Acceptance by fulfilling conditions of offer
    - Reciprocal promise or consideration
    7. Only offeree can accept the offer.
    8. Procedure of accepting offer must be followed
    9. Acceptance must be within limited time period.
    10.Revocation of offer must be before acceptance.

    An acceptance is to offer what a lighted match is to a train of gun powder.

    Accidental offer
    Accidental offer is a situation when both acceptance letter and revocation letter
    reaches offeror at the same time,

    Consideration
    Consideration means to give something to get something. It means something
    which has some value in the eye of law.

    Importance of consideration
    Without consideration contract is void.

    4
    Class note on law of contract

    Rules regarding consideration


    1. Consideration must be as per the intention of the promisor.
    2. Consideration may come from promisee or third party.
    3. Consideration must have value.
    4. Consideration need not be adequate.
    5. Consideration must be free from undue influence.

    Coercion

    Undue influence

    Fraud
    Fraud is a false representation of fact made with knowledge of falsehood.

    Essential requirements or elements of Fraud


    (a) Misrepresentation facts
    (b) Concealment of any information
    (c) Fraudulent activities
    *** Is mere silence fraud? (s-17)
    Mere silence is not fraud. When
    (a) Silence is equivalent to speech
    (b) When speaking is not duty
    Silence is fraud if
    (a) Being silent when duty is to speak
    (b) When silence is deceptive
    (c) Change of circumstances
    Essential elements of coercion

    Essential elements of undue influence

    Effects or consequence of fraud

    Performance of contract
    *** Offer to perform contract (s 40-43)
    (a) Offer must be unconditional
    (b) Tender must be at proper time and place.
    (c) Providing reasonable opportunity.

    5
    Class note on law of contract

    (d) Performance of partial promise.


    (e) Opportunity of seeing.

    ***Who is to perform the contract?


    (a) Performance by the promisor himself
    (b) Performance agent
    (c) Performance of promise by third party.
    (d) Performance of promise after the death of promisor.

    Legal representative will be bound to perform the contract but they are not
    personally liable. Only the property of the deceased person is liable.

    *** Contracts which need not be performed?


    (a) When promisee excuses the performance of the contract. (s 63)
    (b) If time is extended to performer. If promisee gives immunity to performer
    (c) If voidable contract is set aside by one party. (s 64)
    (d) If a contract is renewed or altered, new contract will substitute to old
    contract.
    (e) If promisee refuses to give reasonable time.

    *** Discharge of contract or termination of contract


    A contract can be discharged or terminated by
    (a) Performance of contract
    (b) Supervening impossibility
    (c) By new contract
    (d) Breach of contract
    (e) Time expiry
    (f) Enforcement of law
    (g) Death of any party (leaving no legal representative)
    (h) Mutual agreement (novation, waiver, accord or satisfaction)

    Contingent contract

    Wagering contract

    6
    Class note on law of contract

    *** Supervening impossibility


    Or impossibility of performance
    Or doctrine of frustration
    (a) Impossibility arising due to change in law
    (b) Destruction of an object necessary for the performance of contract.
    (c) Frustration of purpose
    (d) Personal incapacity or death
    (e) Change in circumstances
    (f) Declaration of war

    Effects of supervening impossibility


    Contract will become void automatically if there arises supervening
    impossibility.

    Different types of breach of contract


    (a) Actual breach
    (b) Presumed breach

    ***Remedies for breach of contract


    Breach of contract is when one party does not perform the obligation of
    contract. There are five types of remedies of breach of contract.
    (a) Rescission of contract.
    (b) Damages
    1) Nominal damages
    2) Substantial damages
    3) Exemplary damages
    4) Liquidated damages
    5) Liquidated damages
    - General damages
    - Special damages
    (c) Specific performance
    (d) Injunction: injunction is the court’s order not to do certain things.
    1) Perpetual injunction
    2) Temporary injunction
    (e) Quantum Meruit ( )

    7
    Class note on law of contract

    Difference between contingent contract and wagering contract


    (a) There is mutual promise in wagering contract and vice versa
    (b) Contingent contract is a valid and legal contract and vice versa.

    *** Features or characteristics of bailment


    (a) Delivery should be upon contract
    (b) Contractual relationship between bailee and bailor
    (c) Delivery of possession
    (d) Delivery should be upon some purpose.
    (e) There should be consideration
    (f) Minor can be bailor or bailee
    (g) Goods must be movable property

    Rights of Bailor

    Duties of Bailee

    Definition of agent and principal

    Capacity of an agent
    Or who can be agent?

    Test of agency
    Principal is responsible for functions of agent. But in case of absence of agency,
    there is no responsibility for principal.
    Wife and son cannot be agent of husband and father respectively.

    *** Methods of creation of agency


    (a) Agency created by expressed authority (with terms and conditions)
    (b) Agency created by implied authority
    (c) Agency created by estoppel
    (d) Agency created by necessity
    (e) Agency created by ratification (when agent’s voluntary and legal work is
    ratified by principal) s-196
    (f) Agency created by law
    Codification of valid ratification (s-198)

    8
    Class note on law of contract

    Review class or suggestion


    == Contract-==
    ***Definition of contract
    Difference between agreement and contract
    *** Essential elements/requirements/requisites of a valid contract
    ***Types of contract
    (a) Valid contract
    (b) Void contract
    (c) Voidable contract
    (d) Unenforceable contract
    Executed and executory contract

    Express and implied contract

    Quasi-contract
    Unilateral and bilateral contract

    On which grounds a contract becomes void?


    Or List of void contracts

    == offer==
    Definition offer
    *** Rules regarding offer
    Who can make an offer?
    To whom an offer be made?
    Communication of offer
    ***When communication of offer is completed?
    *** Difference between offer and invitation treat
    *** Revocation of offer
    *** Rules regarding revocation of offer
    Counter-offer
    ***Rules regarding acceptance
    When an acceptance is completed?
    *** An acceptance is to offer is like that of a lighted match to a train of gun
    powder.

    9
    Class note on law of contract

    = Consideration=
    Definition of consideration
    *** Rules regarding consideration.
    Types of consideration
    *** Past consideration is no consideration
    *** without consideration a contract is void’ discuss with exceptions
    Or is it possible to enter into a contract without consideration.

    = capacity to contract=
    Who is a minor?
    Age of minor
    Definition of a minor
    *** Laws relating to minor’s contract
    *** Minor’s contract is void ab initio. Discuss with exceptions

    = Free consent=
    Definition of consent
    *** Definition of free consent
    Coercion
    Proof of coercion
    Effects of coercion
    *** Undue influence
    ***Elements/presumptions of undue influence
    ***On whom burden of proof of undue influence rest?
    ***Effects of undue influence

    = Fraud=
    *** Elements of fraud
    ***** Mere silence is not fraud
    When silence is fraud?
    Effects of fraud
    *** Difference between fraud and misrepresentation
    *** Difference between mistake law and mistake of fact
    *** Consequence of mistake
    Or effects of mistake

    10
    Class note on law of contract

    = Discharge of contract=
    When does question of breach of contract arises?
    *** Remedies of breach of contract
    Methods of termination of contract
    *** Doctrine of frustration or supervening impossibility
    *** Effects of supervening impossibility
    Quasi-contract
    Rules regarding quasi-contract
    Difference between contingent contract and quasi-contract
    ***Difference between wagering contract and contingent contract

    = bailment=
    Define bailment
    ***Features of bailment
    Rights of bailor
    Duties of bailee
    *** can a bailee transfer the goods to another person other than the bailor?

    = agency=
    Definition of agent and principal
    ***Capacity of agent
    Test of agency
    ***Creation of agency
    *** Methods of creation of agency
    ***Conditions of valid ratification (s- 198)
    Agent’s authority in an emergency

    11

    You might also like