Understanding the concept of Contract Law

The Indian Contract Act,1872 defines the term “Contract” under its section 2 (h) as “An agreement enforceable by law”

An agreement is not a contract, as an agreement is just coming into harmony with regard to the terms and conditions of the parties, whereas an agreement enforceable by law in a Contract.

We can say that a contract is anything that is an agreement and enforceable by the law of the land.

Difference between a void and a voidable contract - 

Void Contract - It a contract that is not applicable by the nature of it, as it violates the clauses of the Indian Contract Act.

Voidable Contract - Voidable contracts are contracts that can be terminated by the consent of the parties as it does not violates the provision of the Indian Contract Act. It only violates the provision of the agreement and which shall be subject to the parties if they want the contract to be invalid.

Essentials Features of a Contract

1. Two Parties - There shall be to or more parties to a contract. A single person can not come to a contract single-handedly.
2. Free Consent - A contract shall be mutually accepted without any force from either of the parties.
3. Lawful Consideration -  Quid Pro Quo means ‘something in return’ which means that the parties must accrue in the form of some profit, rights, interest, etc. In simpler words, we may say that in a contract each party shall be capable and will to provide something in return as consideration.
4. Competency Of the Parties - Section 11 of the Indian Contract Act, 1872 states “Who are competent to contract:

• Every person is competent to contract who is Of the age of majority according to the law to which he is subject. 
• He/She is of sound mind.
• And, is not disqualified from contracting by any law to which he is subject.

5. Possibility of the performance of the contract - The contract shall be in such a nature so that becomes possible to fulfill. Suppose two people decide to get into an agreement where a person A agrees to bring back the person B’s dead relative back to life. Even when all the parties agree and all other conditions of a contract are satisfied, this is not valid because bringing someone back from the dead is an impossible task. Thus the agreement is not possible to be enforced and the contract becomes void.

Damages under Breach of Contract

• Section 73 of the Contract Act lays down the provision relating to damages. It provides that the party, who breaches a contract, is liable to compensate the injured party for any loss or damage caused, due to the breach of contract. 
• Section 74 of the Act deals with the situation where the parties to a contract agree that the contract itself will stipulate the penalty for the breach of the contract 

For any further assistance, you may contact Solutions Legalis

Contact us to getting more extra information:- +91- 8851087095