1. Proposal 2. Promise 3. Agreement 4. Consent 5. Consensus idem 6. Communication 7. Competancy 8. Lawful consideration 9. Lawful object 10.

Law should not prohibit such contract

OPERATION PORTION
Consideration how much? How to be paid? Where? To whom? Default effect viz. majeure force majeure Penalty Form for redress Arbitration clause Duties and taxes Guarantee & warranty Speed discount After sales services Any other conditions

RECITAL PORTION
Date of execution Place of execution Names of the parties Their address Offeror and acceptor Nominee details Attesting witness Verification clause

1. 2. 3. 4. 5. 6. 7. 8.

Right to sell or transfer Right of possession and delivery Exclusive use and enjoyment Right to create a pledge Right to create a charge Right to hypothecate Right to give license to others to use Right to gift

DOCUMENTS FOR HYPOTHECATION

Borrower to give to the lender 1. Tom give properties as securities (without possession) 2. To assign the right to sell in favour of the lender 3. Promisory note 4. Affidavit cum indemnity binding the L.R. too 5. Post dated cheques 6. Insurance policy to be taken for the advanced amount 7. If necessary a letter of undertaking.

Parties Individual II
Competency

Firm
Partnership deed

Company
Memorandum article

Solvency

Registered partners details

Implied authority Post dated cheque

Board resolution

Surety

Surety

Post dated cheque

Post dated cheque

Insurance

Insurance surety

Insurance

COMPONENTS OF A CONTRACT
CONTRACT Agreeme nts Obligation

Which surrende r rights

Which assign rights

which create,define,protec t,and preserve right and obligations (contract act)

Social

Tortious

Compromise decree

Quasi contract

leg al obli gati on

DRAFT AGREEMANT
1. In a non judicial stamp paper 2. Written after the date of purchase of stamps papers

CLASSIFICATION OF CONTRACT
CONTRACT

Validity

Formation

Performance

1.Valid contract 2(h) 2.Void agreement 2 (g) 3.Voidable contract 2 (i) 4.Void contract 2 (j) 5.Unenforceable agreement 6. Unlawful agreement 7.Illegal agreement

Express: oral or written tacit Implied

1.Executed contract 2.Executory contract 3.Unilateral contract. 4. Bilateral contract

CLASSIFICATION OF LAW
LAW Adjectival (or) Procedural law

Substantive law

Private law Contract act Sales of goods act Transfer of property act

Public law constitutio n

Personal law Christian muslim and hindu law

civil procedure

Criminal procedure

evidence

THANK YOU