We all of us face many legal difficulties in our life and many transaction related to Real Estate. We enter in an agreement but most of time we do not about contract and agreement formalities.Mostly people do not aware about legal content according to law even educated people also fell in problems due to unknowing of condition of contracts. contract law is complicated ,but we cannot avoid it, because we enter many time into different - different type of contracts, so we must know,that what is lawful contracts ?
All contracts are agreements, but all agreements are not contracts. An agreement not enforceable by law is said to be void; An agreement enforceable by law is contract.
What is contract ?A contract, requires minimum two parties, the promisor and the promisee.
Promisor
The person making the proposal is called a proposer or promisor.
Promisee
The person accepting the proposal is called a proposer or a promisee.
Proposal
When one person signifies to another his willingness to do or to abstain from doing anything with a view to obtaining the assent of that other to such act or abstenance he is said to make a proposal. And when the person to whom the proposal is made signifies his assent thereto the proposal is said to be accepted.
Agreement -
An offer when is accepted becomes an agreement. But all agreements are not contracts. In order to become a contract, an agreement must be enforceable at law .
Contract -
A contract comes into existence when a person makes a proposal to do certain thing or to abstain from doing a certain thing and that proposal is accepted by the person to whom it is made.
Void-Contract
An agreement which is enforceable by law at the option of one or more f the parties thereto,but not at the option of the other or others, is a voidable contract. A contract which cease to be enforceable by law becomes void when it ceases to be enforceable.
Who are competent to contract ?Every person is competent to contract who is of the age of majority according to the law to which he is subject, and who is of sound mind is not disqualified from contracting by any law to which he is subject.
Who is sound mind ?
A person is said to be of sound mind for the purpose of making a contract, if, at the time when he makes it, he is capable of understanding it and of forming a rational judgement as to its effect upon his interests.
A person who is usually of unsound mind, but occasionally of sound mind,may make a contract when he is of sound mind.
A person who is usually of sound mind, but occasionally of unsound mind, may not make a contract when he is of unsound mind.
Consent
Two or more person are said to consent when they agree upon the same thing in the same sense.
Free consent Consent is said to be free when it is not caused by -
1. coercion
2. undue influence
3. fraud
4. misrepresentation
5. mistake.
Consideration
When, at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing or promises to do or to abstain from doing, something , such act or abstinence or promise is called a consideration for the promise.
What agreements are contracts ?
An offer it is accepted becomes an agreement. But all agreements are not contracts. In order to become a contract, an agreement must be enforceable at law can result in to a contract.
A contract is an agreement enforceable by law.All agreements are contracts, if they are made by free consent of parties competent to contract, for a lawful consideration and with a lawful object, and not hereby expressly declared to be void.
Therefore, before interring in to a agreement , contemplate, that it should to according to law . otherwise if any dispute raises then contract can be void.
Apart from this there are many other condition, which should be cleared ,e.g.
What is Coercion ?
What is undue influence ?
What is fraud ?
What is misrepresentation ?
What is mistake ?
Effect of mistake as to law ?
What consideration and objects are lawful , and what not ?
Agreement without consideration, void, why ?
Uncertainty Agreement ?
what is contingent contract ?
Which contracts must be performed ?
When contracts become void ?What is the effect of accepting performance from third person?
What is reciprocal promises ?
Responsibility and liabilities ?
What is beach of contracts ?
Compensation for loss or damage caused by breach of contract ?
What is Frustration of contract ?
Indian Property Management and Research
Book Reference :
The Indian Contract Act, 1872
Mumai, India
