22914162-the-indian-contract-act-1872.ppt

8/13/2019 22914162-the-indian-contract-act-1872.ppt

1/14

ByShafeer khan 1111249


2/14

1)An offer may be express or implied

An offer may be made either by words or by

conduct. An offer which is expressed by words,

spoken or written, is called an express offerand the one which is inferred from the conduct

of a person or the circumstances of the case is

called an implied offer


3/14

2) Specific and general offer

An offer is said to be specific when it is

addressed to a definite person or body of persons.

A general offer is one which is addressed to the

world at large.


4/14

Carlill v. Carbolic Smoke Ball Co.

Carbolic Smoke Ball Co. (D) manufactured and sold The

Carbolic Smoke Ball. The company placed ads in various

newspapers offering a reward of 100 pounds to any

person who used the smoke ball three times per day asdirected and contracted influenza, colds, or any other

disease. After seeing the ad Carlill (P) purchased a ball

and used it as directed. Carlill contracted influenza and

made a claim for the reward. Carbolic Smoke Ballrefused to pay and Carlill sued for damages arising from

breach of contract. Judgment for 100 pounds was entered

for Carlill and Carbolic Smoke Ball appealed.


5/14

An offer must be such that when accepted it will result in

a valid contract. A mere social invitation cannot be

regarded as an offer, because if such an invitation is

accepted it will not give rise to any legal relationship.

3) offer must be given with an intention tocreate a legal relationship


6/14

(Balfour Vs. Balfour 1919)

Summary of case study

A husband worked overseas and agreed to send maintenance payments to his

wife. At the time of the agreement the couple were happily married. The

relationship later soured and the husband stopped making the payments. The

wife sought to enforce the agreement

Issue :

Weather arrangements that are agreed between a husband and wife constitute a

contract

Rules :

Court held that arrangements between spouses do not constitute a contract

Parties did not intended to form a contract with legal consequences.


7/14

4) Offer must be definite

The terms of an offer must be definite, clear and

certain. If the terms of the offer are vague and

uncertain, no contract will come into existence.

The reason for the same is that when the offer is

vague or uncertain, it cannot be said what exactly

the parties intended to do


8/14

Taylor Vs. Portington

A contract for the lease of a house for three

years at $85 per annum if the house was put

into thorough repairs and the drawing roomshandsomely decorated according to the

present style the court refused specific

performance on the ground that the termswere indefinite


9/14

5)Offer and invitation to treat.

They should be a clear cut about the

invitation and offer they are not the same


10/14

Harris Vs. Nickerson

The defendant advertised that an auction of certain goods would take

place at a stated time and place. The plaintiff travelled to the auction

only to find that items that he was interested in had been withdrawn.

He claimed compensation for breach of contract, arguing that theadvertisement constituted an offer, and his travelling to the auction,

an acceptance by conduct.

The advertisement was not an offer, merely a declaration of intention.


11/14

6) Offer must be communicated.

The offer must be communicated to the person to

whom it is made. An offer becomes effective

only when it is communicated to the offeree


12/14

Lalman Shukla vs Gauri Datt :-

the defendants nephew absconded fromhome. He sent his servant, the plaintiff to

search him. After the servant left thedefendant announced for Rs.501 as rewardto any body giving information relating tothe boy. The servant unaware about the

reward informed the defendant about theboy. Latter on reading the notice theservant claimed the reward.


13/14

If the offer does not intend to give rise to

legal consequences, it is not a valid offer inthe eye of law.

Even if in business agreement if the parties

agrees that the breach of the agreementwould not confer on either parties a right toenforce the agreement in a court of law,there is no contract.

7) Offer Must be Competent to give rise to legal

consequences


14/14

Rose & Frank Co. vs Crompton & Brothers Ltd.

Summary of case study

Rose and Frank Co. were the exclusive American distributor

for J.R. Crompton's new paper product. In their agreement

there was a clause included stating that the arrangement wasnot intended to be a formal legal agreement and would not

be subject to legal jurisdiction of either the US or the UK.

J.R Crompton cancelled the agreement because they were

unhappy with Rose and Frank Co.'s proceedings and Rose

and Frank Co. sued for breach. They were successful at trial,which J.R. Crompton appealed.

Date post:	04-Jun-2018
Category:	Documents
Upload:	shafeer-khan
View:	220 times
Download:	0 times

22914162-the-indian-contract-act-1872.ppt

Documents