PPT - Nature of contract | Business Laws for CA Foundation PDF Download

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NATURE OF CONTRACT
The Indian Contract Act, 1872
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NATURE OF CONTRACT
The Indian Contract Act, 1872
Contents
Objects of Law of Contract
The Indian Contract Act,1872
Definition of Contract
Essential Elements of a Valid Contract
Classification of Contracts
Classification of Contracts in English Law
Page 3


NATURE OF CONTRACT
The Indian Contract Act, 1872
Contents
Objects of Law of Contract
The Indian Contract Act,1872
Definition of Contract
Essential Elements of a Valid Contract
Classification of Contracts
Classification of Contracts in English Law
Object of Law of Contract
Definiteness in business transactions.
To ensure realisation of reasonable expectation of the parties who 
enter into a contract. 
Of particular importance to people engaged in trade, commerce and 
industry as bulk of their business transactions are based on 
contracts.
Page 4


NATURE OF CONTRACT
The Indian Contract Act, 1872
Contents
Objects of Law of Contract
The Indian Contract Act,1872
Definition of Contract
Essential Elements of a Valid Contract
Classification of Contracts
Classification of Contracts in English Law
Object of Law of Contract
Definiteness in business transactions.
To ensure realisation of reasonable expectation of the parties who 
enter into a contract. 
Of particular importance to people engaged in trade, commerce and 
industry as bulk of their business transactions are based on 
contracts.
The Indian Contract Act,1872
Branch of law which determines circumstances in which promises made 
by parties to a contract shall be legally binding on them.
It deals with
? General Principles of the Law of Contract (Sec 1-75)
? Some special contracts only (Sec124-238)
The A ct is not exhaustive : Does not deal with contracts relating to 
partnership, sale of goods, negotiable instruments, insurance etc.
N ature of the Law: Does not lay down the rights and duties law will 
enforce, but consists of limiting principles subject to which the parties 
may create rights and duties for themselves, which the law will uphold.
Page 5


NATURE OF CONTRACT
The Indian Contract Act, 1872
Contents
Objects of Law of Contract
The Indian Contract Act,1872
Definition of Contract
Essential Elements of a Valid Contract
Classification of Contracts
Classification of Contracts in English Law
Object of Law of Contract
Definiteness in business transactions.
To ensure realisation of reasonable expectation of the parties who 
enter into a contract. 
Of particular importance to people engaged in trade, commerce and 
industry as bulk of their business transactions are based on 
contracts.
The Indian Contract Act,1872
Branch of law which determines circumstances in which promises made 
by parties to a contract shall be legally binding on them.
It deals with
? General Principles of the Law of Contract (Sec 1-75)
? Some special contracts only (Sec124-238)
The A ct is not exhaustive : Does not deal with contracts relating to 
partnership, sale of goods, negotiable instruments, insurance etc.
N ature of the Law: Does not lay down the rights and duties law will 
enforce, but consists of limiting principles subject to which the parties 
may create rights and duties for themselves, which the law will uphold.
Is not the whole law of agreements nor whole law of obligations: 
Excludes from its purview all obligations not contractual in nature and  
agreements which are social in nature
Creates jus in personam as distinguished from jus in rem: 
Example:
A owes a certain sum of money to B. B has a right to recover it from A. This right 
can be exercised only by B and by none else against A. This right of B is a jus in 
personam. 
?Right against or in respect of a     
thing
?Available against the world at  
large
?Right against or in respect of a     
specific person
?Available only against 
particular   
persons