PPT: Introduction to the Law of Contracts | Civil Law for Judiciary Exams PDF Download

 Page 1


Law of Contracts
Page 2


Law of Contracts
Law of Contracts: 
Meaning, Nature and 
Important Definitions
Meaning
A legally binding agreement 
between parties that 
creates mutual obligations.
Nature
Combines promises with 
legal enforceability to 
create binding 
relationships.
Importance
Forms the foundation of business and personal transactions in 
society.
Page 3


Law of Contracts
Law of Contracts: 
Meaning, Nature and 
Important Definitions
Meaning
A legally binding agreement 
between parties that 
creates mutual obligations.
Nature
Combines promises with 
legal enforceability to 
create binding 
relationships.
Importance
Forms the foundation of business and personal transactions in 
society.
Contract under Indian 
Contract Act
Definition of 
Contract
An agreement 
enforceable by law is 
termed as a contract.
Key Points for 
Contract Formation
A contract comprises an 
agreement and 
enforceability.
Illustration
X agrees to build a house for Y for Rs. 10 Lakhs, highlighting 
enforceability.
Page 4


Law of Contracts
Law of Contracts: 
Meaning, Nature and 
Important Definitions
Meaning
A legally binding agreement 
between parties that 
creates mutual obligations.
Nature
Combines promises with 
legal enforceability to 
create binding 
relationships.
Importance
Forms the foundation of business and personal transactions in 
society.
Contract under Indian 
Contract Act
Definition of 
Contract
An agreement 
enforceable by law is 
termed as a contract.
Key Points for 
Contract Formation
A contract comprises an 
agreement and 
enforceability.
Illustration
X agrees to build a house for Y for Rs. 10 Lakhs, highlighting 
enforceability.
Understanding Agreement under the Indian 
Contract Act
Definition
"Every promise and every set of promises, forming the 
consideration for each other, is an agreement." - 
Section 2(e)
Balfour Vs Balfour Case
Court ruled Mr. Balfour's promise to send £30 monthly 
was not legally binding. No intention to create legal 
relations existed.
Page 5


Law of Contracts
Law of Contracts: 
Meaning, Nature and 
Important Definitions
Meaning
A legally binding agreement 
between parties that 
creates mutual obligations.
Nature
Combines promises with 
legal enforceability to 
create binding 
relationships.
Importance
Forms the foundation of business and personal transactions in 
society.
Contract under Indian 
Contract Act
Definition of 
Contract
An agreement 
enforceable by law is 
termed as a contract.
Key Points for 
Contract Formation
A contract comprises an 
agreement and 
enforceability.
Illustration
X agrees to build a house for Y for Rs. 10 Lakhs, highlighting 
enforceability.
Understanding Agreement under the Indian 
Contract Act
Definition
"Every promise and every set of promises, forming the 
consideration for each other, is an agreement." - 
Section 2(e)
Balfour Vs Balfour Case
Court ruled Mr. Balfour's promise to send £30 monthly 
was not legally binding. No intention to create legal 
relations existed.
Types of Agreements
Valid Agreements
Enforceable by law, legally 
binding on parties 
involved.
Voidable 
Agreements
Enforceable, but one 
party can void or enforce 
it.
Void Agreements
Not enforceable by law, 
lack legal effect from 
outset.
Illegal Agreements
Against the law, not 
enforceable by legal 
means.