Business Law (Contract and its kinds)
The term fraud includes all acts committed by a party to induce the other party to enter into a contract with an intention to deceive. Definition Section 17 provides, “Fraud means and includes any of the following acts committ…
The following are the points of difference between the two. a. Coercion 1. Nature Coercion is a physical threat to property or person. 2. Illegal & Unfair Coercion involves doing or threatening to do an illegal act. 3. Pen…
A Pardahnashin lady is one who is illiterate, ignorant and observes complete seclusion (pardah) according to the custom of her family. If a lady keeps her face covered but transacts her own business, collects rents from her te…
Definition The term undue influence means the unfair use of one’s superior power in order to obtain the consent of person who is in a weaker position. It is described under 1. section 16 (1 & 2). Section. 16 (16) It define…
Definition of Consent An agreement is valid only when it is made with free consent of parties. Section 13 defines consent as, two or more persons are said to consent when they agree upon the same thing in the same sense. Defin…
Following persons are disqualified from contracting: (Sec. 11). 1. Joint Stock Company Joint stock company cannot enter into contract outside the powers giver, to it by its Memorandum of Association or by the provisions of the…
bFor a valid contract, it is necessary that each party to the contract must have sound mind. (Sec.11) Sound Mind Section 12 defines, “A person is said to be of sound mind for the purpose of making a contract if, at the time wh…
The contracting parties must be competent to contract. Every person is competent to contract who is of the age of majority, has sound mind, and is not disqualified from contracting by any law. A minor, person of unsound mind a…
For the valid agreement, the object and consideration of an agreement must be lawful. If the consideration or object of a contract is unlawful the agreement is illegal and therefore void. The words ‘object’ and ‘consideration’…
Privity of contract means relationship existing between the parties who have entered into agreement. There are two consequences of the doctrine of privity of contract. 1. A person who is not a party to a contract cannot sue u…
According to law, agreement without consideration is void. Following are the agreements which are valid even without consideration. Natural Love and Affection: The agreement which is expressed in writing and registered under t…
The essentials or legal rules of a valid consideration are as under: 1. Desire of Promisor: For a valid consideration, the act or absitinence which forms the consideration must be done at the desire of the promisor. It means t…
Meaning and Definition: Consideration is one of the essentials of valid contract. An agreement with out consideration is void. A consideration is what a promisor demands for his promise. An agreement is enforceable when both t…
If the letter of acceptance is delayed or lost, following is the effect: 1. Position of Offeror: When the letter of acceptance is posted, the offeror is bound by that acceptance. The contract is valid even if the letter of acce…
When the contracting parties are face to face with each other, there is immediate communication of offer and acceptance. The moment the offeree gives his acceptance there is a valid agreement. When the parties are at a distance f…