Management Laws

BY BHIMRAJ SONAWANE BE BIOTECHNOLOGY

Sonawane ,B.S. 2012

Content
Contract

Contract Act
Types of Contract

Sonawane ,B.S. 2012

Contract
A contract is a legally binding exchange of promises

or agreement between parties that the law will enforce. Contract law is based on the Latin phrase pacta sunt servanda meaning ,literally, promises must be kept.

Sonawane ,B.S. 2012

 In common law jurisdictions there are two key

elements to the creation of a contract. These are:1.offer and acceptance, and 2. consideration and an intention to create legal relations. But ,in civil law systems the concept of consideration is not central.

Sonawane ,B.S. 2012

Offer and acceptance

An Offer is an expression of willingness to contract

on certain terms, made with the intention that it shall become binding as soon as it is accepted by the person to whom it is addressed, the "offeree. Acceptance is a final and unqualified expression of assent to the terms of an offer.

Sonawane ,B.S. 2012

 Rules of acceptance: 1. The acceptance must be communicated. 2. An offer can only be accepted by the offeree. 3. An offeree is not bound if another person accepts the 4. 5.

6. 7.

offer on his behalf without his authorization. Silence cannot be construed as acceptance If the offer specifies a method of acceptance (such as by post or fax), you must accept it using a method that is no less effective than the method specified. It may be implied from the construction of the contract that the offeror . has dispensed with the requirement of communication of acceptance.
Sonawane ,B.S. 2012

 Perhaps the most important feature of a contract is

that one party makes an offer for a bargain that another accepts. This can be called a 'concurrence of wills' or a 'meeting of the minds' of two or more parties. There must be evidence that the parties had each from an objective perspective engaged in conduct manifesting their assent, and a contract will be formed when the parties have met such a requirement
Sonawane ,B.S. 2012

 An objective perspective means that it is only

necessary that somebody gives the impression of offering or accepting contractual terms in the eyes of a reasonable person, not that they actually did want to contract.

Sonawane ,B.S. 2012

Types of Contract
Express or Implied

Bilateral or Unilateral
Void Contract Executed or Executory

Sonawane ,B.S. 2012

Unilateral Contract
It is the one where an offer is made to the whole

world and acceptance comes from particular people upon their fulfillment of the contractual terms or the condition precedent. The offeree accepts the offer by performing his or her side of the bargain. A Bilateral Contract is, where there is an exchange of promises between two parties.

Sonawane ,B.S. 2012

Implied Contract
Offer and acceptance does not always need to be

expressed orally or in writing. An implied contract is one in which some of the terms are not expressed in words. A contract which is implied in fact is one in which the circumstances imply that parties have reached an agreement even though they have not done so expressly.

Sonawane ,B.S. 2012

Void Contract
A contract which ceases to be enforceable by law be-

comes void when it ceases to be enforceable. Thus, initially a contract cannot be void, i.e. a contract cannot be void ab initio. The simple reason is that in such a case, it is not a contract at all to begin with. Hence, only a valid contract can become void contract due to some subsequent events.

Sonawane ,B.S. 2012

 Example: the person dies or property is destroyed or

Government imposes a ban etc. A void agreement is void ab initio. It never becomes a contract. It is nullity and cannot create any legal rights.

Sonawane ,B.S. 2012

 Voidness implies that a contract never came into

existence. Voidability implies that one or both parties may declare a contract ineffective at their wish. Unenforceability implies that neither party may have recourse to a court for a remedy. Recission is a term which means to take a contract back.

Sonawane ,B.S. 2012

Executed Contracts
the infant has obtained some benefit under the

contract, he/she cannot avoid obligations unless what was obtained was of no value. Upon repudiation of a contract, either party can apply to the court. The court may order restitution, damages, or discharge the contract. All contracts involving the transfer of real estate are considered valid until ruled otherwise.

Sonawane ,B.S. 2012

 Thank you

Sonawane ,B.S. 2012