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LAW OF CONTRACT

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WHAT IS LAW OF CONTRACT?

Body of law or a set oflaw that governs oral and written

agreements and subjects,

such as agency relationship, commercial

paper, and business organization,

provided such agreements fulfilled the

requirements under law.

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WHAT IS CONTRACT?

1. An agreement enforceable by law

(defined under Section 2 (h)

of Contract Act 1950)

2. A binding agreement between two or

more parties for performing, or refrainingfrom performing, some specified act(s)

in exchange for lawful consideration.

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REFRESH YOUR MIND!!!

What is the difference

between contract and

agreement?

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Agreement may not intend to have

legal relation

Some agreement might consistillegality

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HOW TO MAKE A CONTRACT

BINDING AND VALID?

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ANYBODY CAN TELL ME HOW TO

MAKE A CAKE?

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IF ONE OFTHE

INGREDIENTSIS MISSING

THEN YOUR

CAKE WILL BE

LIKE THIS!!

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A cake will not be a cake withoutthe right ingredients

If you agree with thisstatement, please raise up yourhands.

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The same goes to contract.

To have a valid contract we need to know the

right ingredients!

The ingredients are:- offer

acceptance intentionto have legal relation

consideration

capacity

certainty

consent

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OFFER!

Whatdoyouunderstandaboutoffer? discounted shoes

buy 1 free 2

buy 3 free Me 30%- 80% sale!!!

Year End Sales!

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Section 2 (a)ofContract Act 1950

when one person signifies to another

his willingness to do or not to dosomething, with a view to get/obtain

consent from the other party to the act,he is said to make a proposal

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Sound a little bit complicated

right?.....

Those who agree that thisdefinition is complicated,please blink your eyes

twice..

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LETSSHARE YOUR FINDINGS..

ANYONE WOULD LIKE TO SHARE

DEFINITION OF OFFER THAT YOU

FOUND..

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My definition..

Expression of willingness to enter intocontract with the intention to be bound incase if such willingness accepted by the otherparty.

Those who express the willingness known asofferorand those who accept is called asofferee

This definition is similar with the words undersection 2 (a) of Contract Act 1950

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ISSUE!!!

How are we going to determine

that the situation is offer or justan advertisement?

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There are two situation that similar with

offer that we call it as MERE OFFER

In law, there are 2 types of offer namely:-

VALID OFFER

MERE OFFER

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To have a contract we need to have valid

OFFER

To determine whether the offer is valid or

not, we have to differentiate between

valid and mere offer

If the situations or circumstances of

mere offer exist in a scenario , THEN

valid offer will not exist

If the circumstances of the scenario is

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WHAT ARE THE

SITUATIONS/CIRCUMSTANCES

THAT INDICATES MERE OFFER?

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Mere offer means aninvitation to deal withthe product or subject

matter

3situationsof mereoffer:-

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1. MERE OFFER

a word that simply present theintention or aims of the parties withoutany intention to bind the transaction.

Re FICKUS CASE

2. MERE INFORMATION a statement shows the informationabout the subject matter such as price,colour, capacity and etc without intentionto bind the statement

HARVEY v FACEY

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3. INVITATIONTOTREAT (ITT)

ITT is the situations where the offerorinvites peple to make further dealing

with the business.ITT is not an offer butinvitation to make a valid offer.

Divided into 3 circumtances:-

display goods in shop windows display goods on shelf

public advertisement

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HOMEWORK..

1. 3 SITUATIONS WHEREOFFERCAN BEREVOKED.

2. WHATIS ACCEPTANCE?