Business Law - The Indian Contract Act, 1872

After studying this unit, you would be able to understand

UNIT -1 NATURE OF CONTRACT

1. Understand the meaning of the terms ‘agreement’ and ‘contract’ and note the distinction between the two.

2. Note the essential elements of a contract.

3. Be clear about various types of contract.

4. Understand the concept of offer and acceptance and rules of communication and revocation thereof.

UNIT-2: CONSIDERATION

1. Understand the concept of consideration, its importance for a contract and its double aspect.

2. Clearly understand how consideration may move from a third party and how this makes the contract valid.

3. Learn about the peculiar circumstances when a contract is valid even without consideration.

4. Be aware of the rule ‘A stranger to a contract cannot sue’ and exceptions thereof.

UNIT-3: OTHER ESSENTIAL ELEMENTS OF A CONTRACT

1. Note the various ingredients of incapacity to contract.

2. Be clear about the legal consequence of contracting with a minor.

3. Be familiar with the concept of ‘consensus ad idem’ i.e. parties agreeing upon the same thing in the same sense.

4. Try to grasp the characteristics of different elements vitiating free consent and particularly to distinguish amongst fraud, misrepresentation and mistake.

5. Understand the circumstances when object and consideration become unlawful.

6. Be aware of the agreements opposed to public policy.

UNIT – 4: PERFORMANCE OF CONTRACT

1. Understand how obligations under a contract must be carried out by the parties.

2. Be familiar with the various modes of performance.

3. Be clear about the consequence of refusal of performance or refusal to accept performance, by either of the parties.

4. Understand rights of joint promisees, liabilities of joint promisors, and rules regarding appropriation of payments.

UNIT – 5: BREACH OF CONTRACT AND ITS REMEDIES

1. Understand the concept of breach of contract and various modes thereof.

2. Be clear about how the damages are to be measured.

UNIT – 6: CONTINGENT AND QUASI CONTRACTS

1. Have clarity about the basic characteristics of ‘Contingent contract’ and ‘Quasicontract’ so that you are able to distinguish between a contract of any of these types and a simple contract.

2. Be familiar with the rules relating to enforcement of these in order to gain an understanding of rights and obligations of the parties to the contract.