Professional Documents
Culture Documents
COMMERCIAL LAW
INTRODUCTION
Definition of Contract
Essential
Requirements of a
Valid Contract
Illustration
A asks B Will you purchase my car for
Rs. 5000/-?
Offer may be express or implied;
specific or general
Illustration 1
A asks B in a letter whether he will buy his
house for Rs. 1 Lakh.
Illustration 2
A transport company running a route bus in
a specific route.
Illustration 3
A advertises in a newspaper offering Rs.
50/- to anyone who returns his lost dog
1.
2.
3.
4.
5.
6.
Lapse of Offer
An offer lapses
1.
By communication of termination of offer
2.
By lapse of specified or reasonable time
3.
By death or insanity of the offerer
4.
By counter offer
5.
By not being accepted according to the
prescribed or usual mode.
6.
By non-fulfillment of a condition precedent.
Acceptance
Rules as to acceptance:
1.
Must be absolute and unqualified
2.
Must be communicated
3.
Must be according to the prescribed or usual
mode
4.
Given within prescribed of reasonable time
5.
Acceptance should follow offer
6.
Accepted by the offeree
7.
Given before offer lapses
Communication of Offer,
Acceptance and Revocation
Illustrations
1. A proposes, by letter, to sell a house to B
at Rs. 1 Lakh.
2. B accepts As proposal by a letter sent by
post.
3. A revokes his proposal by telegram.
4. B revokes his acceptance by telegram.
Acceptance
Capacity to Contract
Minors
Persons of unsound mind and
Persons disqualified by any law to which they
are subject (insolvents etc)
(a)
(b)
(c)
(d)
(e)
(f)
Minors Agreements
an agreement with or by a minor is void and
inoperative of ab initio. [Mohiri Bibi vs. Dharmodas
Ghose (1903) 30 cal 539]
He can be a promisee or a beneficiary [Sharafat Ali
vs. Noor Mohammed (1924) rang 136]
Cannot be ratified by him on attaining the age of
majority.
He cannot be asked to compensate or pay for what
he has received under void contract. However, his
estate will be liable for the necessities supplied to
him.
He cannot be a partner in a partnership
He cannot be adjudged as insolvent
(a)
(b)
(c)
(a)
(b)
(c)
(d)
(e)
Others
Alien enemies
Foreign sovereigns and accredited
representatives of foreign states
Corporations
Insolvents
Convicts
Consideration
Exceptions
VOID AGREEMENTS
1.
3.
4.
5.
6.
7.
8.
9.
11.
12.
Thank You!!!