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INDIAN CONTRACT ACT, 1872 Chapter- 3 Section- 31 [Contingent contract defined] A “contingent contract” is a contract to do or not to do something, if some event, collateral to such contract, does or does not happen. Section- 32 [Enforcement of contracts contingent on an event happening] Contingent contracts to do or not to do anything in an uncertain future event happens, cannot be enforced by law unless and until that event has happened. If the event becomes impossible, such contracts become void. Section- 33 [Enforcement of contracts contingent on an event non happening] Contingent contracts to do or not to do anything if an uncertain future event does not happen, can be enforced when the happening of that event becomes impossible, and not before. Section- 34 [When event on which contract is contingent to be deemed impossible, if it is the future conduct of a living person] If the future event on which a contract is contingent is the way in which a person will act at

INDIAN CONTRACT ACT, 1872 Chapter- 2 Section- 10 [What agreements are contract] All agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void. Section- 11 [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 , and who is of sound mind and is not disqualified from contracting by any law to which he is subject. Section- 12 [What is a sound mind for the purpose of contracting] A person is said to be of sound mind for the propose of making a contract, if, at the time when he makes it, he is capable of understanding it and of forming a rational judgement as to its effect upon his interest.A person who is usually of unsound mind, but occasionally of sound mind, may make a contract when he is of sound mind. A person who is usually of sound mind, but occ

INDIAN CONTRACT ACT, 1872 Chapter - 1 • {Contains section 3 - 9} Section- 3 [ Communication, Acceptance and revocation of proposals ] The communication of proposals, the acceptance of proposals, and the revocation of proposals and acceptance, respectively, are deemed to be made by any act or omission of the party proposing, accepting or revoking, by which he intends to communicated such proposal, acceptance or revocation, or which has the effect of communicating it. Section - 4 [ Communication when complete ] The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made. The communication of an acceptance is complete,— • as against the proposer, when it is put in a course of transmission to him so as to be out of the power of the acceptor; • as against the acceptor, when it comes to the knowledge of the proposer. The communication of a revocation is complete,—•as against the person who makes it, when it is put into a course of

INDIAN CONTRACT ACT, 1872 (Preliminary) • {Contains section 1 and 2} Preamble Whereas it is expedient to define and amend certain parts of the law relating to contracts; It is hereby enacted as follows: Section- 1 [ Short title ] This Act may be called the Indian Contract Act, 1872. Extent, Commencement. -It extends to the whole of India 1[except the State of Jammu and Kashmir]; and it shall come into force on the first day of September 1872. Saving.- 2[* * *] Nothing herein contained shall affect the provisions of any Statute, Act or Regulation not hereby expressly repealed, nor any usage or custom of trade, nor any incident of any contract, not inconsistent with the provisions of this Act. 1. Subs. by Act 3 of 1951, sec. 3 and Sch., for “except Part B States”. 2. The words “The enactments mentioned in the Schedule hereto are repealed to the extent specified in the third column thereof, but” rep. by Act 10 of 1914, sec. 3 and Sch. 11. Section - 2 [ Interpretation Clause

Introduction ‘Capacity to Contract’ means competency of the parties to enter into a valid contract. Competency of the parties is an essential element of a valid contract.  According to Section 10 of the Contract Act, “all agreements are contracts if they are made by free consent of parties competent to contract." Thus Section 10 requires parties to be competent to contract. Section 11 of the Contract Act declares that a person is incompetent to contract under the following circumstances: 1. If he is a minor, according to the law to which he is subject. 2. If he is of unsound mind and 3. If he is disqualified from contracting by any law which he is subject. 4. Incapacity to contract may arise out of mental deficiency and status. Incapacity arising out of mental deficiency may be due to minority, idiocy, lunacy or drunkenness. Incapacity arising out of status may be divided into political or civic, professional, artificial or corporate, and married. Position of a Minor

Meaning The doctrine of privity of a contract is a common law principle which implies that only parties to a contract are allowed to sue each other to enforce their rights and liabilities and no stranger is allowed to confer obligations upon any person who is not a party to contract even though the contract have been entered into for his benefit.  For example- If A makes a promise to deliver some goods to B. Then in this case, if A breaches the contract then only B has a right to prosecute him and no other person can prosecute him. Essentials of Privity of contract 1. A contract has been entered into between two parties:-  The most important essential is that there has been a contract between 2 or more parties. 2. Parties must be competent and there should be a valid consideration:-  Competency of parties and the existence of consideration are pre-requisites for application of this doctrine. 3. There has been a breach of contract by one party:-  Breach of contract by one Party

Section 25 defines exceptions to rule an agreement without consideration is void- An agreement made without consideration is void, unless – (1) it is expressed in writing and registered under the law for the time being in force for the registration of documents, and is made on account of natural love and affection between parties standing in a near relation to each other; or unless. (2) it is a promise to compensate, wholly or in part, a person who has already voluntarily done something for the promisor, or something which the promisor was legally compellable to do; or unless. (3) it is a promise, made in writing and signed by the person to be charged therewith or by his agent generally or specially authorised in that behalf, to pay wholly or in part debt of which the creditor might have enforced payment but for the law for the limitation of suits. In any of these cases, such an agreement is a contract. Explanation 1 : Nothing in this section shall affect the validity, as be

Introduction An offer, an acceptance of the proposal and their revocation to be complete, must be communicated properly as per provisions made in law. These provisions are contained in Sections 3-6 of Indian Contract Act, 1872. Communication of proposals, their acceptance, revocation and acceptances, respectively, are deemed to be made by an act or omission of the party proposing, accepting or revoking, by which that the party intends to communicate such proposal, acceptance or revocation of which has the effect of communicating it [Section 3]. Thus a proposal, its acceptance or revocation may be communicated by conduct or by words written or spoken. When the contracting parties are face to face and negotiate in person there is instantaneous communication of offer and acceptance. But where services of the post offices are utilized for communication, the following rules as laid down in Sections 4 and 5 will apply. Communication of Offer Section 4 of the Indian Contract Act 187

“Consideration means something which is of some value in the eyes of law. It may be some benefit to the plaintiff or some detriment to the defendant”.  Introduction Consideration is one of the most important essentials of valid Contract. It is the foundation of every contract. It is the sign and symbol of a bargain. It is a legal evidence of the intention of the parties to effect their legal relation. When a party to an agreement promises to do something, he must get something in return of it. If he does not get something in return, the contract is not valid. The word, ‘consider' is derived from the Latin term ‘Considerare’ and the meaning of the word consideration is ‘payment’ or 'reward’. Consideration is the normal ‘badge of enforceability’ for a contract. Subject to certain exceptions, an agreement is not enforceable unless each party to agreement gets something. This “something" is called ‘consideration'. Consideration is a quid pro quo i.e. something in r