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Contract by Mind Map: Contract

1. Essential element

1.1. Proposal/Offer

1.1.1. s.2(a) Contracts Act 1950 A proposal is made when one person signifies to another person, his willingness to do or to abstain from doing something, inorder to obtain the assent of that other person.

1.1.2. Types Bilateral proposal Unilateral proposal

1.2. Acceptance

1.2.1. s.2(b) Contracts Act 1950 A proposal is accepted when the offeree signifies his assent to the proposal.

1.2.2. s.2(c) Contracts Act 1950 When the proposal is accepted, it becomes a "promise".

1.2.3. Mode of acceptance In case of instantaneous communication In case of communcation by post Postal rule

1.2.4. Termination of Proposal By offeree making a rejection or a counter-proposal

1.2.5. Revocation of Proposal

1.3. Consideration

1.3.1. s.2(d) Contract Act

1.3.2. Type Executory Consideration Executed Consideration Past consideration

1.3.3. Exeptions Agreement made on natural love and affection s.26(a) Agreement to compensate for past voluntary act / for an act which the promisor was legally compellable to do s.26(b) Agreement to pay a statue barred debt a.26(c) Goverment scholarship s.4(c) Contract Act 1976

1.3.4. Waiver of debt or oligation s.64 CA 1950

1.4. Certainty of terms

1.4.1. s.30 CA 1950 Agreements that are not certain in meaning or which the meaning is not capable of being made certain, are void

1.5. Intention to create legal relations (ITCLR)

1.5.1. the parties must have intended their agreement to be legally-binding,have legal consequences

1.5.2. Type Business or Commercial Agreements Social, Domestic and Family Agreements

1.6. Formalities

1.6.1. Contract can be made orally, in writing or by conduct.

1.6.2. Exceptions Hire purchases agreement Hire Purchase Act 1967 Agreement made on natural love and affection s.26(a) Agreement to pay a statue barred debt a.26(c)

1.7. Legal Capacity

1.7.1. Parties must be legally competent to enter into contract Section 11 CA 1950 Age of majority Sound Mind Not disqualified from contracting by any law

1.7.2. Parties must have legal capacity to contract

1.8. Free Consent of parties

1.8.1. Coercion

1.8.2. Undue influence

1.8.3. Fraud

1.8.4. Misrepresenation

1.8.5. Mistake

1.9. Legality or lawfulness of object

2. Defination

2.1. agreement

2.1.1. legally binding on parties

2.2. Orally

2.2.1. in writing by the conduct of parties

3. Contract Act 1950