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Law of Contract - Assignment

   

Added on  2020-05-11

8 Pages2315 Words77 Views
Running head: Contract Act, 1950Introductory Law of Contract

Contract Act, 19501ContentsIntroduction to Contractual Law............................................................................................................1Features of a Legal Contract..................................................................................................................2Offer /Proposal..................................................................................................................................2Acceptance /Approval.......................................................................................................................2Consideration /Price..........................................................................................................................2Intention to create legal relations.......................................................................................................2Capacity to contract...........................................................................................................................3Certainty............................................................................................................................................3Free consent.......................................................................................................................................3Recommendations for amendment to the Contract Act, 1950 regard to features of a legal contract......3Discharge of a contract..........................................................................................................................5Introduction.......................................................................................................................................5Modes of Discharge of the contract...................................................................................................5Discharge of contract by performance...................................................................................5Discharge of contract by agreement.......................................................................................5Discharge of contract by frustration.......................................................................................5Discharge by breach...............................................................................................................6Conclusion.............................................................................................................................................6References.............................................................................................................................................6

Contract Act, 19502Introduction to Contractual Law Contract in its general term defines as a legal agreement enforceable by law intentionally to create legal binding effect over two or more parties on a lawful consideration or price (Dunham, 2011). In the words of Pollock, a contract term as a “promise or set of promises by law put into effect” Features of a Legal ContractTo constitute a legal or valid contract, it is significant to observe seven major components of contract. These are as following:Offer /Proposal(a first step of valid contract)An offer or proposal is made by a one party (promisor) to another party (promisee). It is to benoted that an offer can be made to any person or to any particular person with a readiness to do or refrain from doing anything (McKendrick, 2014). A case which is habitually cites- Carlill v Carbolic Smoke Ball Company (1892) EWCA Civ 1 where particulars of unilateral contract is specified. In order to remove an ambiguity, the case provides that an offer must becertain and communicated. Acceptance /ApprovalAcceptance is an assurance by a party that such party is ready to accept the proposal of promisor. It is to be noted that proposal and acceptance must be communicated between each other as per section 3 of Act (Poole, 2016). A case, Hyde v Wrench (1840) EWHC Ch J90is aleading one where a counter offer and acceptance are two different entities of a contract where court held that counter offer terminates the original proposal. Consideration /PriceAs per section 2(d) of Act, defines consideration “as an action or restraint or assurance done by one party for the action or restraint or assurance of another party”. Chappell & Co Ltd v Nestle Co Ltd (1959) UKHL1 is a most leading case, where the court established the doctrineof consideration must be something valuable in the eyes of law and does not require being adequate. In this case, court held that chocolate packages were also connoting as an essential requisites of a lawful consideration.

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