CHAPTER NO.1 (CONTRACT AND ITS KINDS)

BUSINESS LAW
(KHALID MAHMOOD CHEEMA)

CHAPTER NO.1 (CONTRACT AND ITS KINDS)


ESSENTIALS OF VALID CONTRACT

Section 2(h) .A valid contract is an agreement which is binding and enforceable .In valid contrac all the parties legally bound to performed the contract. (page no.3)
1.PROPOSAL: For valid contract proposal is necessary . There are two parties in proposal.
e.g: A says to z that he will sell his cycle to him for Rs. 2500. This is an proposal.
2.ACCEPTANCE: When the promisee significe the willingness then proposal is said to be acceptance.
e.g: A says to z that he will sell his cycle to him for Rs. 2500. This is an proposal. If z accepts this offer there is an acceptance.
3. AGREEMENT: After the acceptance or offer it will be only promise . For the valid contract there must be an agreement enforceable by law.
4. WRITTING AND REGISTRATION( AGREEMENT IN MUST BE IN WRITTING): (PAGE NO.5 WITH EXAMPLE)
5. LAWFUL CONSIDERATION( LAWFUL AGREEMENT): (PAGE NO.4 WITH EXAMPLE)
6. LEGAL RELATIONSHIP: Agreement must create legal relationship b/w the parties of the contract each party should no the rights & duties.
e.g: If A offered to sell his house to B Rs 80Lac. & B agree o buy . It is legal relationshipin both the party.(PAGE NO.3 WITH EXAMPLE is also best diffination)
7. lawful object: The object of the contract is not lawful . Then it is in validcontract ,Illegal or immoral object makes the contract in valid.
e.g: MR Arshad promises to pay 1 Lac. to Mr Adil in condition , he killed Mr Ahmad . The agreeent is legal but object is illegal.
8. FREE CONCENT:(PAGE NO.5 WITH EXAMPLE)
9. PARTIES CONSIDERATION: It is also essentilas of valid contract when at the wish of the promiser . THe promisery does or steps fro doing any act or promise .
10. lawFUL CONSIDERATION:(PAGE NO.4 WITH EXAMPLE)
11. COMPETENCY OF THE PARTY : Only competent parties can into the contract ,According to contract act following persons are competent.
a)Any one the age of majurity.
b)Who is soundmind.
c)Who is not disqualified to enter into the contract.
12. POSSIBLITY OF PERFORANCE:(PAGE NO.6 WITH EXAMPLE)
13. CERTAINTY OF TERMS & DEFINITE: It must be clear if the performance of the contract is not possible when it will not be a void ontract.(PAGE NO.6 WITH EXAMPLE)
14. DICLEARED VOID: It is also essentials the agreements must happened decleared void by any law of country.
a)Agreement of immoral acts.
b)Agreement will both parties are under-mistake.
c)Agreement to stop the trade.
d)Agreement to stop legally proceedings.
e)Agreement to due an act which is possible.
f)Agreement to stop the marriage of any person .
g)Agreement by way of bet.