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CONTRACT
= AGREEMENT + ENFORCEABILITY
An agreement enforceable by law is Contract. - Section 2(h) There must be legal relationship.
VOID AGREEMENT
= AGREEMENT + NO ENFORCEABILITY
An agreement not enforceable by law is said to be void agreement. Section 2(g) A contract which ceases to be enforceable by law becomes void when it ceases to be enforceable. Section 2 (j) Example: An agreement with minor
Two or more persons are said to consent when they agree upon the same thing in the same sense. (Section 13)
Coercion
Coercion is the committing or threatening to commit any act forbidden by the Pakistan Penal code or the unlawful detaining or threatening to detain any property.
Undue Influence
Consist in the improper exercise of a power over the mind of one of the contracting parties by the other.
Fraud
In the broadest sense, a fraud is a deception made for personal gain or to damage another individual. Fraud is a crime and is also a civil law violation The suggestion that a fact is true when it is not true, by the one who does not believe it to be true
Misrepresentation
It means a false statement of fact made by one party to another party, which has the effect of inducing that party into the contract. For example, under certain circumstances, false statements or promises made by a seller of goods regarding the quality or nature of the product that the seller has may constitute misrepresentation.
Mistake
Mistake refers to mis-understanding or wrong thinking or wrong belief. When both the parties to an agreement are under a mistake as to a matter of fact essential to the agreement is void.
Every person is competent to contract who is of the age of majority according to the law to which he is subject, and who is of sound mind, and is not disqualified from contracting by any law to which he is subject. (Section 11)
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has done or abstained from doing (PAST), or does or abstains from doing (PRESENT), or promises to do or to abstain from doing, something (FUTURE),
such act or abstinence or promise is called a consideration for the promise. -Section 2 (d) A promise without consideration is not
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Agreements which create legal relations or are capable of creating legal relations are contracts, for example, an invitation to a dinner does not create any legal relation and therefore is not a contract.
Husband & Wife Agreements The courts consider domestic arrangements between husband and wife to be social agreements and not legally enforceable
The terms of a contract should be clear. In other words, the contract must not be vague. Contracts which are vague cannot be enforced.
Example: A agrees to sell to B a hundred tons of oil. There is nothing whatever to show what kind of oil was intended. The agreement is void for uncertainty.
There are Certain agreements which have been expressly declared void by the law. Thus an agreement made by parties should not fall in this category.
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Oral contract is a valid contact. However the contract must be in writing and registered, if so required by any law, for example, gift, sale, lease under the Transfer of Property Act 1882, Memorandum and Articles of Association of a Company under the Pakistan Companies Act
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Thank You
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