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BUSINESS REGULATORY FRAMEWORK

BUSINESS REGULATORY FRAMEWORK. VALID CONTRACT AND ITS ELEMNENTS. DEFINITIONS OF CONTRACTS According to justice SALMOND ,’’ A Contract is an agreement creating and defining obligations between the parties.

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BUSINESS REGULATORY FRAMEWORK

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  1. BUSINESS REGULATORY FRAMEWORK

  2. VALID CONTRACT AND ITS ELEMNENTS • DEFINITIONS OF CONTRACTS • According to justice SALMOND,’’ A Contract is an agreement creating and defining obligations between the parties. • ACCORDING TO LEAKE, ’’An agreement as the source of legal contracts imparts that one party shall be bound to some performance, which the other shall have a legal right right to enforce.’’ • ACCORDING TO Section 2(h) of the Indian Contract Act, “Contract is an agreement enforceable by law.” From the above definitions a contract must have the following two elements • The agreement between the parties. • Agreement must be enforceable by law.it should create legal obligation between the parties.

  3. 1. AGREEMENT :- According to section 2(e) of indian contractAct, “Every promise or every set of promises forming the consideration for each other is an agreement.’’ The word promise had been defined in the section 2 (b) of the indian Contract Act “ When the person to whom proposal is made, it signifies his assent there to the proposal is said to be accepted. AGREEMENT= OFFER + ACCEPTANCE 2.ENFORCEABLE BY LAW :- An agreement to become a contract must give rise to legal obligation between the parties so that it may be enforced from law. IF AN AGREEMENT DOES NOT CREATE LEGAL OBLIGATIONS BETWEEN THE PARTIES THEN IT DOES NOT BECOME CONTRACT. CONTRACT=AGREEMENT + ENFORCEABILITY

  4. ESSENTIALS OF A VALID CONTRACT • OFFER AND ACCEPTANCE (section 2(a) and 2(b)) • INTENTION TO CREATE LEGAL OBLIGATIONS (Balfour and Mrs Balfour) • CONTRACTUAL CAPACITY OF THE PARTIES -Person must be in the age of majority -is of sound mind -is not disqualified from contracting by any law to which he is subject • LAWFUL CONSIDERATION • LAWFUL OBJECT • FREE CONSENT • AGREEMENT NOT EXPRESSLY DECLARED AS VOID • THE AGREEMENTMUST BE IN WRITING AND REGISTERED • POSSIBILITY OF PERFORMANCE

  5. ALL CONTRACTS ARE AGREEMENTS BUT ALL AGREEMENTS ARE NOT CONTRACTS • The statement can be divided into two parts 1.All contracts are agreements 2. All agreements are not contracts 1.All contracts are agreements:- Agreement = proposal + Acceptance Contract = Agreement + Enforceability 2. All agreements are not contracts:- The case of BALFOUR AND MRS BALFOUR need to be mentioned here.

  6. Kinds of Agreements • According to sec 2 (e) every set of promise forming the consideration for each other is called agreement. VALID ILLEGAL KINDS OF AGREEMENTS VOIDABLE VOID

  7. TYPES OF CONTRACT • On the basis of obligations • Unilateral contract • Bilateral contract • On the basis of formation • Express contract • Implied contract • On the basis of execution • Executed contract • Executory contract • On the basis of enforceability • Enforceable contract • Unenforceable contract • On the basis of validity 1) Valid contract • Void contract • Voidable contract

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