Mba Bl Jollysarkar Lect 2

Contract = agreement +legal enforceability Legal enforceability depends upon two factors: 3.Intention of the parties making an agreement 5.Presence of all essential elements of a contract

BL

Lecture 2

JollySarkar

1.Intention of the parties‘Legal obligations’ will arise only when the parties to an agreement want to make themselves legally bound to perform the duties assigned in the agreement. •Domestic agreement with no legal binding- Balfour v. Balfour (1919) •Commercial agreement with legal binding •Domestic agreement with legal binding- Merritt v. Merritt (1970) •Commercial agreement with no legal binding- Rose & Frank Co. v. J.R. Cromptom & Bros. Ltd.(1923) BL

Lecture 2

JollySarkar

2.Essential Elements of a Valid Contract Sec10 of the Indian Contract Act, 1872 Provides that, “ All agreements are contracts if they are made by the free consent of the parties competent to contract, for a lawful consideration with a lawful object, and are not herby expressly declared to be void.” BL

Lecture 2

JollySarkar

Thus to form a contract, there must be Offer and acceptance Intention to create legal relationship Lawful consideration. Capacity of parties – Competency Free and genuine consent Lawful object Agreement not expressly declared void Certainty and possibility of performance Legal formalities BL

Lecture 2

JollySarkar