INDIAN CONTRACT ACT,1872


ESSENTIALS OF VALID CONTRACT

1. Proper offer and acceptance-A contractual obligation arise when there is proper offer from one party and its acceptance by other party.

2. lawful object-the object of contract should be lawful. 

3. agreement not expressly declared void

4. Free consent-the consent of parties should be free. It should not be obtained out of force.

5. Intention to create legal relationship-there should be intention to create legal relationship.

6. Certainty of meaning- the contract should be certain. Its terms and condition should not be ambiguous.

7.Capacity of parties to enter into contract-The parties to contract should be capable of entering into contract.

8.Possibility of performance-The performance of contract should be possible.

9. Lawful consideration- The consideration of contract should be legal and certain.

10. Legal formation-the contract should create legal obligation.
DISCHARGE OF CONTRACT

 Discharge of contract-It is a situation when contract ceases to operate. When right and obligation between them comes to an end. Discharge of contract means termination of contractual relationship between parties.


MODES OF DISCHARGE OF CONTRACT

 -By performance
-By agreement or by consent
-By Impossibility of performance
-By death

BREACH OF CONTRACT AND ITS REMEDIES

 Breach of contract-when one of the party to the contract does not fulfill the obligation of the contract than the other party can adopt any of the following remedies.

 1. Recession of contract-When one of the party does not fulfill the contract than the other party can rescind the contract. As per section 65 of the Indian Contract Act, the party that rescinds the contract must restore any benefits he got under the said agreement.

2. Sue for damage-Section 73 clearly states that the party who has suffered, since the other party has broken promises, can claim compensation for loss or damages caused to them in the normal course of business. Two types of damages are available. liquidated damage and liquidated damage.

 3.Sue for specific performance-This means the party in breach will actually have to carry out his duties according to the contract. In certain cases, the courts may insist that the party carry out the agreement.

 4. Injunction-An injunction is basically like a decree for specific performance but for a negative contract. An injunction is a court order restraining a person from doing a particular act.

Quasi-contract

An obligation of one party to another imposed by law independently of an agreement between the parties.

This is also known as an implied contract and forces the unjustly enriched party to make restitution for the products or services received, even in the absence of a written contract. The restitution is called quantum meruit and is determined by the degree to which the defendant was unjustly enriched.

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