THE INDIAN CONTRACT ACT, 1872

Indian Contract Act does not profess to be a complete and exhaustive code. It deals with

• General Principles of the law of contract (Secs. 1 to 75)•Some special contracts only (Secs. 124 to 238)

Some Contracts not dealt with are those relating to partnership, sale of goods, negotiable instruments, insurance, bill of lading etc.

jus in personam vs jus in rem

jus in personam jus in remRight against or in respect of a specific person

Right against or in respect of a thing

Available against particular persons

Available against the world at large

jus in personam - Example

A owes a certain sum of money to B. B has a right to recover this amount from A. This right can be exercised only by B and by none else against A. this right of B is jus in personam.

jus in rem - Example

X is the owner of a plot of land. He has a right to have quiet possession and enjoyment of that land against every member of the public. Similarly every member of the public is under an obligation not to disturb X’s possession or enjoyment. This right of X is a jus in rem.

Definition of Contract

Pollock’s define as“Every Agreement and promise enforceable at law is a contract”

Definition of Contract

Anson defines as“a legally binding agreement between two or more persons by which rights are acquired by one or more to acts or forbearances (abstaining from doing something) on the part of the others”

Agreement - Definition

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

Promise defined as “when the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal, when accepted becomes a promise.

Agreement = Offer + Acceptance

Consensus ad idem

The essence of an agreement is the meeting of the minds of the parties in full and final agreement; there must, in fact, be consensus ad idem. (The parties to the agreement must have agreed about the subject-matter of the agreement in the same sense and at the same time)

ESSENTIAL ELEMENTS OF A VALID CONTRACT

•Offer and acceptance•Intention to create legal relationship•Lawful consideration•Capacity of parties – competency•Free and genuine consent•Lawful object•Agreement not declared void•Certainty and possibility of performance•Legal formalities