Description
A contract is an agreement having a lawful object entered into voluntarily by two or more parties, each of whom intends to create one or more legal obligations between them.
Overview of Contract Law
1
Overview of Contract Law
2
Abhay, deciding to go to his office in his car than by public transport, stopped at a cross-section when the light turned red. He saw a colleague and gave him a lift. Later, traffic police demanded pollution control certificate from Abhay. The validity of the certificate, which Abhay had, was over. Abhay was fined Rs. 500 which he had to pay. Which among the above actions Abhay could not have avoided? Which among the above actions of Abhay were voluntary?
3
• Stopping
at the red light
• Producing certificate for inspection
• Paying fine for not possessing proper certificate
The state makes laws and requires compliance, at the threat of punishment.
4
• Going
by car than public transport
• Giving a lift to his colleague
Beyond the impositions of the state and law, people are free to do what they like. Let us explore this domain of individual action and interaction.
5
Suman books to buy a car with a motor agency. If the car is delivered and sold to him beyond two weeks, he would have to pay Rs. 25, 000 more in increased price of the car and taxes. The agency said, “We cannot promise but will try to get it for you within two weeks.” The car was delivered beyond the two weeks. Can Suman hold the motor agency responsible for paying additional Rs. 25, 000 for the car? Can he demand the additional money from the agency?
6
A motor car agency selling motor cars agreed to supply car of a certain make to Gaurav in a week. The firm finally supplied him the car five months later. In the process, Gaurav was required to pay Rs. 45, 000 more as the price of the car had increased.
Can Gaurav hold the motor agency responsible for paying additional Rs. 45, 000 for the car? Can he demand the additional money from the agency?
7
Agreements must be performed by the parties.
8
Dilip, son of an ex-colleague of Avinash, is in Avinash’s office soliciting money as donation for his studies. Avinash says, “I can give you Rs. 5, 000.” Dilip says, “Thank you for this help.” Raman, a caterer, also comes to Avinash’s office. He has done the catering for a party hosted by Avinash the previous evening, celebrating his son’s birthday. Raman’s bill is for Rs. 10, 000.
9
While Avinash was counting the money to give to Dilip and Raman, the phone rang. A stockbroker informed Avinash that he had lost 8 lakhs in a stock transaction. Avinsh, as he has lost money, refuses to give any money to Raman and Dilip.
Is there an agreement between Avinash and the Raman, the caterer? Should Avinash be required to Raman Rs. 10, 000?
Is there an agreement between Avinash and Dilip? Should Avinash be required to pay Dilip Rs. 5000?
10
Consideration is the material benefits parties transact. Only agreements which have consideration for both the parties are to be enforced. Such agreements are called contracts.
11
Situation 1: Arvind, “I want a Carrier, 1.5-ton air conditioner. I will only pay Rs. 25, 000, the price advertised by the company. Will you sell me one for this price? Maulik, “Yes.” Situation 2: Arvind, “I want to buy a Carrier, 1.5-ton air conditioner.” Maulik, “It will be Rs 25,000, sir”. Arvind, “I will buy one.”
Situation 3: Maulik, “I recommend a 1.5-ton air conditioner for the size of the room you describe. Carrier is a good brand. We will sell it to you for Rs 25,000. Arvind, “Fine. I will buy it.”
12
Situation 1: Arvind offers Rs. 25, 000 for the AC. Maulik accepts. Situation 2: Maulik offers the AC for Rs. 25,000. Arvind says yes. Situation 3: Maulik recommends and offers AC for Rs. 25,000.
13
An agreement is formed by acceptance of an offer or proposal. Offer, acceptance and consideration are the essential elements for formation of a contract.
14
Mahim sold Abhay a fake pollution control certificate for his car. He reassured him that the traffic police would never be able to make it out. Abhay was to pay him Rs. 500 for it the next evening. The same morning Abhay encountered a special traffic police force checking for the pollution certificate. The traffic police had one look at the certificate and declared it to be a fake one. Abhay had to pay a fine of Rs. 1000. In this context, Abhay is refusing to pay Rs. 500 to Mahim for the fake certificate while Mahim is demanding the contracted amount. Decide.
15
Contracts tainted with illegality should not be enforced. There could be other similar grounds on which contracts could be set aside.
16
A shop selling motor cars agreed to supply car of a certain make to Gaurav in a week. The firm finally supplied him the car five months later. In the process, Gaurav was required to pay Rs. 45, 000 more as the price of the car had increased.
How can we do justice to Gaurav?
17
In the cases where a contract is not performed, a money equivalent can be worked out for the losses, damages and suffering of the party. The infringing party can be made to pay this.
18
1. Offer, acceptance and formation of agreements.
2. Consideration
3. Setting aside of bad contracts 4. Damages and Compensation
19
doc_299590444.ppt
A contract is an agreement having a lawful object entered into voluntarily by two or more parties, each of whom intends to create one or more legal obligations between them.
Overview of Contract Law
1
Overview of Contract Law
2
Abhay, deciding to go to his office in his car than by public transport, stopped at a cross-section when the light turned red. He saw a colleague and gave him a lift. Later, traffic police demanded pollution control certificate from Abhay. The validity of the certificate, which Abhay had, was over. Abhay was fined Rs. 500 which he had to pay. Which among the above actions Abhay could not have avoided? Which among the above actions of Abhay were voluntary?
3
• Stopping
at the red light
• Producing certificate for inspection
• Paying fine for not possessing proper certificate
The state makes laws and requires compliance, at the threat of punishment.
4
• Going
by car than public transport
• Giving a lift to his colleague
Beyond the impositions of the state and law, people are free to do what they like. Let us explore this domain of individual action and interaction.
5
Suman books to buy a car with a motor agency. If the car is delivered and sold to him beyond two weeks, he would have to pay Rs. 25, 000 more in increased price of the car and taxes. The agency said, “We cannot promise but will try to get it for you within two weeks.” The car was delivered beyond the two weeks. Can Suman hold the motor agency responsible for paying additional Rs. 25, 000 for the car? Can he demand the additional money from the agency?
6
A motor car agency selling motor cars agreed to supply car of a certain make to Gaurav in a week. The firm finally supplied him the car five months later. In the process, Gaurav was required to pay Rs. 45, 000 more as the price of the car had increased.
Can Gaurav hold the motor agency responsible for paying additional Rs. 45, 000 for the car? Can he demand the additional money from the agency?
7
Agreements must be performed by the parties.
8
Dilip, son of an ex-colleague of Avinash, is in Avinash’s office soliciting money as donation for his studies. Avinash says, “I can give you Rs. 5, 000.” Dilip says, “Thank you for this help.” Raman, a caterer, also comes to Avinash’s office. He has done the catering for a party hosted by Avinash the previous evening, celebrating his son’s birthday. Raman’s bill is for Rs. 10, 000.
9
While Avinash was counting the money to give to Dilip and Raman, the phone rang. A stockbroker informed Avinash that he had lost 8 lakhs in a stock transaction. Avinsh, as he has lost money, refuses to give any money to Raman and Dilip.
Is there an agreement between Avinash and the Raman, the caterer? Should Avinash be required to Raman Rs. 10, 000?
Is there an agreement between Avinash and Dilip? Should Avinash be required to pay Dilip Rs. 5000?
10
Consideration is the material benefits parties transact. Only agreements which have consideration for both the parties are to be enforced. Such agreements are called contracts.
11
Situation 1: Arvind, “I want a Carrier, 1.5-ton air conditioner. I will only pay Rs. 25, 000, the price advertised by the company. Will you sell me one for this price? Maulik, “Yes.” Situation 2: Arvind, “I want to buy a Carrier, 1.5-ton air conditioner.” Maulik, “It will be Rs 25,000, sir”. Arvind, “I will buy one.”
Situation 3: Maulik, “I recommend a 1.5-ton air conditioner for the size of the room you describe. Carrier is a good brand. We will sell it to you for Rs 25,000. Arvind, “Fine. I will buy it.”
12
Situation 1: Arvind offers Rs. 25, 000 for the AC. Maulik accepts. Situation 2: Maulik offers the AC for Rs. 25,000. Arvind says yes. Situation 3: Maulik recommends and offers AC for Rs. 25,000.
13
An agreement is formed by acceptance of an offer or proposal. Offer, acceptance and consideration are the essential elements for formation of a contract.
14
Mahim sold Abhay a fake pollution control certificate for his car. He reassured him that the traffic police would never be able to make it out. Abhay was to pay him Rs. 500 for it the next evening. The same morning Abhay encountered a special traffic police force checking for the pollution certificate. The traffic police had one look at the certificate and declared it to be a fake one. Abhay had to pay a fine of Rs. 1000. In this context, Abhay is refusing to pay Rs. 500 to Mahim for the fake certificate while Mahim is demanding the contracted amount. Decide.
15
Contracts tainted with illegality should not be enforced. There could be other similar grounds on which contracts could be set aside.
16
A shop selling motor cars agreed to supply car of a certain make to Gaurav in a week. The firm finally supplied him the car five months later. In the process, Gaurav was required to pay Rs. 45, 000 more as the price of the car had increased.
How can we do justice to Gaurav?
17
In the cases where a contract is not performed, a money equivalent can be worked out for the losses, damages and suffering of the party. The infringing party can be made to pay this.
18
1. Offer, acceptance and formation of agreements.
2. Consideration
3. Setting aside of bad contracts 4. Damages and Compensation
19
doc_299590444.ppt