Law of Contract L
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Aadarsh Vivek MitraLaw of Contract L
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Aadarsh Vivek Mitra📘 Law of Contract – Overview (Based on Indian Contract
Act, 1872)
"The Law of Contract is the backbone of all
commercial transactions — it governs how
promises become enforceable agreements under
the law."
🔍 Definition:
A contract is an agreement enforceable by law.
— Section 2(h), Indian Contract Act, 1872
✅ Essential Elements of a Valid Contract (Section-wise):
S.No. Element Relevant Explanation
Section
A lawful offer made by one
1.
Offer and Sec. 2(a), party and lawful acceptance by
Acceptance 2(b) the other, forming an
agreement.
Intention to Parties must intend for the
2. Create Legal — agreement to be legally
Relations binding.
Something of value exchanged
3.
Lawful Sec. 2(d) — it must not be illegal or
Consideration immoral.
Parties must be of sound mind,
4.
Capacity of Sec. 11 not minors, and not disqualified
Parties by law.
Consent must be free — not
caused by coercion, undue
5. Free Consent Sec. 13–19
influence, fraud,
misrepresentation, or mistake.
S.No. Element Relevant Explanation
Section
The purpose of the contract
6. Lawful Object Sec. 23 must not be illegal, immoral, or
against public policy.
Certainty and Terms must be clear, and the
7. Possibility of Sec. 29 contract must be capable of
Performance being performed.
Agreements expressly declared
8. Not Declared Void Sec. 24–30 void (e.g., wagering
agreements) are not
enforceable.
📚 Types of Contracts (Based on Formation, Enforceability,
and Performance):
1. Based on Formation:
Express Contract – Terms clearly stated
(oral/written).
Implied Contract – Arises from conduct or
circumstances.
Quasi-Contract – Not a true contract; imposed by law
to prevent unjust enrichment.
2. Based on Enforceability:
Valid Contract – Meets all essentials.
Void Contract – Was valid once, but ceases to be
enforceable (Sec. 2(j)).
Voidable Contract – One party has the option to void
it (e.g., consent obtained by coercion).
Unenforceable Contract – Cannot be enforced due
to some technical defect (e.g., lack of stamp).
3. Based on Performance:
Executed Contract – Fully performed.
Executory Contract – Yet to be performed.
Unilateral/Bilateral Contracts – One or both parties
have obligations.
⚖️ Case Law Example:
Case: Carlill v. Carbolic Smoke Ball Co. (1893)
Facts: Company promised to pay £100 to anyone who used
their product and still got flu. Carlill did — and sued.
Held: Advertisement = valid offer. Her acceptance by using
the product = binding contract.
🎯 Catchy Summary:
"The Law of Contract transforms promises into
enforceable duties — protecting trust, trade, and
transactions in everyday life."
Would you like a summary of different chapters (like Special
Contracts, Quasi-Contracts, etc.), or go deeper into Sections 1–75
of the Indian Contract Act, 1872?
