The Indian
Contract Act 1872, sections 1-75 came into
force on 1st September 1872. It applies to the whole of India
except the state of Jammu and Kashmir.
SOME FUNDAMENTALS DEFINITIONS
1.
PROPOSAL (SEC 2(A)): “ when one person signifies to
another his willingness to do or abstain from doing anything with a view to obtain the assent of the other to such
act or abstinence, he is said to make a proposal.”For eg. If A says to B that he wants to buy his scooter for Rs 5000
then it would be said that A has made a proposal to B.
2.
ACCEPTANCE
AND PROMISE(SEC 2(B)):
“ when the person to whom proposal is made signifies his assent then proposal
is said to be accepted. A proposal when accepted becomes a promise” .For eg. If in response to A proposal, B
says that,”yes i am prepared to sell my scooter for Rs 5000 then it would the
acceptance of A proposal by B.
3. PROMISER
AND PROMISEE(SEC2(C)):
the person making the proposal is called promiser
and the person accepting the proposal is called promisee.
4.
CONSIDERATION(SEC2(D)): “when at the desire of the
promiser,the promise has done or abstained from doing then such act or
abstinence or promise is called consideration” For eg. If A buys B scooter for Rs 5000 for him the consideration
for the amt is the scooter whereas for B the consideration for scooter is the
amt of Rs 5000.
5.
AGREEMENT(SEC 2(E)): “ Every promise or set of promises
forming the consideration for each other is an agreement” .For eg. If A promises to
sell his car to B for Rs 500000 and B promises to pay the said amt then it is a
agreement b/w two parties.
6.
CONTRACT(SEC2(H)): “An agreement enforceable by law”.
7.
VOID CONTRACT(SEC 2(J)): “An agreement not enforceable by
law” For eg. Contract with a minor
is considered as void contract.
8.
VOIDABLE CONTRACT(SEC 2(I)): “An agreement which is enforceable
by law at the option of one or more parties but not at the option of other
parties”.For eg. A wants to buy a
young, healthy horse from B who is a horse trader. B sells him old sick horse to A saying that
the animal is young and healthy. So this a case of cheating one party by the
other .Hence,A has full right to break the contract and make the other party
fulfil his obligations.
9.
PLAINTIFF : A person who files a suit in a
court of law against other for breach of contract is called plaintiff.
10.
DEFENDANT: The person against whom a suit has
been filed in court and who has to defend himself against the charges of breach
of contract is called the defendant.
