Definition of Law

1. Citizen Point of View2. Lawyer3. Legislator4. Judge

Definition of Law

Rules of conduct if recognized by state & enforced by it on people are termed as law

Sources of Law

1. English Mercantile law2. Statute Law3. Judicial Deacons4. Customs & Usages

Definition of Agreement

Every promise and every set of promises forming consideration for each other

Essentials of Valid Contract1. Offer & Acceptance2. Intention to create legal relationship Balfour

Vs Balfour3. Lawful Consideration 4. Capacity of Parties5. Free Consent6. Lawful Object7. Agreement not declared void8. Certainty & possibility of performance9. Legal formalities

Classification of Contracts

1. Voidable Contract2. Void Contract3. Illegal Agreement4. Unenforceable Contract5. Express Contract6. Implied Contract7. Executed Contract8. Executory Contract9. Unilateral Contract

Offer & Acceptance Legal rule as to offer1. Should give rise to legal obligations2. Terms must be definite Taylor vs Portington3. Offer be different from intention4. Must be communicated Lalman vs Gauri

dutt5. Should be with intention to receive assent6. No terms of non-compliance7. Statement of price not an offer

Special terms in contract

Parker vs SE RailCross offers

Legal Rules as to Acceptance1. It must be absolute Neale vs Merret2. Must be communicated Brogden vd Metroploitan

Rail Co3. According to mode prescribed4. Reasonable time5. It cannot precede an offer6. Must have intention to fulfill terms of the promise7. Acceptance only by party to whom offer is made8. Accept before offer lapses9. Cannot be implied from silence

Communication of offer, Acceptance and Revocation

Free Consent There is free consent in the absence of 1. Coercion2. Undue influence3. Fraud 4. Misrepresentation5. Mistake

Mistake Mistake is of two types1. Mistake of law2. Mistake of fact

Mistake of law 1. Mistake of law of the country2. Mistake of the foreign country

Mistake of Fact1. Bilateral Mistake2. Unilateral Mistake

Bilateral Mistake1. Mistake as to the subject matter2. Mistake as to the possibility of

performance

Mistake as to the subject matter1. Mistake as to the existence of subject matter

Case Courturier vs Hastie2. Mistake as to the identity of subject matter

Raffel vs Wichelhaus3. Mistake as to the quality of subject matter

nicholson vs smith4. Mistake as to the quantity of subject matter5. Mistake as to the title of subject matter6. Mistake as to the price of subject matter

Unilateral Mistake

1. Mistake as to the identity of the person

2. Mistake as to the nature of the contract

Coercion

1. Effect of Coercion2. Threat to commit suicide

Undue influence

1. Effect of Undue influence2. Burden of proof3. Rebutting of the presumption

Misrepresentation & FraudRequirements of misrepresentation1. Material fact2. It must have induced3. Must have acted4. It is wrong & person making believes it to be

true5. No intention to deceive6. Need not be made directly

Fraud

1. The statement is not true and person making it knows about it

2. Active concealment of fact3. Promise made with no intention to

perform4. Any act to deceive5. Any act declared to be fraudulent

Consequences of Misrepresentation

1. Can rescind the contract2. Insist to be placed in the same

situation

Essentials of fraud1. There is representation which is false2. The representation must relate to material fact3. Representation made before conclusion of contract4. Had the knowledge that it is false makes it

recklessly5. The party acted on it6. Must have been deceived7. Suffered a loss