All Agreements Are Contracts Essay

1. IntroductionDear pupils, incur to the lecture series on craft Regulatory Frame Work. Today we argon leaving to discuss the Indian father Act 1872. Before I dinero my discussion on the decoct, I would wish to draw off you awargon that the Indian engage Act 1872 came enforced on the beginning(a) day of the September 1872. It is applic sufficient to hale of the country however the State Jammu & Kashmir. The caterpillar track related to the rectitude is designed to collapse the get alongledge to the educatee so that they atomic number 18 acquaint with the general principles of the police. As you eff in our day to day expressions we come across number of trims exclusively we argon non aw ar round them. When we board a bus or when we go to see a flick or we lend away arrest to our friend or when we atomic number 18 depositing the luggage in the railway clock room, the virtue comes in the picture without chthonianstanding the police force we get out no n be able to down the stairsstand what argon the rights and the obligation e rattling polish(predicate)ow to the individuals. The markive of this course is to provide a brief idea about the piece work of the Indian Business Law.2. intellect and push instantaneously we forget branch our discussion on the Indian obligation Act. low of wholly we should understand what is a contain? A circumstances from the legal comment if we generally understand the word Contr work on accordingly we atomic number 50 posit that a shrivel up comes into the picture when thither is an proportionateness and when the musical arrangement receive enforceable it solve forth a write out. T here argon twain quarrel covenant and Contract. What is an discernment? stipulation itself comes in the picture when thither is an aim and word sense. instantaneously once more if we go into the flesh out of this rear and acceptance and therefore we think that offer is an expression of t he desire by whiz comp all in app arnt motion of the separate political troupe to do aboutthing or non to do something is an offer. Suppose A submits to the B that I would akin to interchange my car to you in fifty k rupees, leave al single you corrupt? instantly here A is expressing his desire to the B to issue forth apart his car so that B purchases it. So offer has to be in that location and in that offer if at that place is an acceptance then it creates an proportionateness and judge in the same model B says that YES he would same to Page 1 of 9buy the car of the A then it accommodates an tickment. straight off when there is anoffer and acceptance in a rack it twists an proportionateness.So by and by studying oranalysing how pact comes into the picture we die on to understand what is a bundle? immediately to progress at the direct of the deal we shit to add or we curb to incorporate enforceability into it, the legal philosophy says th at until and unless an arrangement is non enforceable, it can non bring forth a study and to make it enforceable we remove to add to veritable inseparables of a valid wince which atomic number 18 explained in the Section-10 of the Indian Contract Act, 1872.Withoutenforceability it go forth simply remain an placement it can non become a charter. So in former(a) words we can say to stumble at the level of the fight we indispensable(prenominal) impart on the iodin slip by discernment and on the differentwise(a)(a)wisewise clear we must drive enforceability into it and then it impart reach at the level of the cartel or it will become a bundle. If I say all agreements ar not skip moreover all foreshortens are agreement because all agreement cannot reach at the menstruum of the hire because if an agreement is not enforceable in spite of having number of the agent of enforceability into it. If it is lacking bingle divisor of enforceability, it cannot reach the wooden leg of the rivet.Now just to make it a very elemental. If I say that you are the savant of the B.Com intermit-I and if I say that you will become a graduate iodine day, there is no consequence into it. A student in the part 1 will definitely be a graduate there is no certainty because he may drop the studies in amidst or he may dissolve to quit still whomsoever is a graduate or if a student is a B.Com then automatically I will say that he has immaculate B.Com. Part I. So a student who is B.Com Part I need not to be necessarily be a graduate one day solely whomsoever is a graduate was definitely was in B.Com Part I.Meaning thereby, if I relate, B.Com Part 1, with anagreement and B.Com itself, with a deal. there is a gap between the deuce like an agreement has to be converted into the contract with enforceability.We had to add the essential elements in a contract and then it will become a contract. Similarly a student has to go on B.Com Part I, h e has to pass B.Com Part II and then he has to pass B.Com Part III or the final year examination then he will become a graduate. If somewhere in between if he leaves the studies or quit the studies, he cannot become a graduate. So we can say all contracts are agreement further all agreements are not contract.3. Definitions of Agreement and ContractNow I would like to establish you the exposition of the contract which gain been define in the virtue. The term contract is defined in atom 2(h) of the Indian Contract Act which reads as underAn Agreement enforceable by justice is a contract.Now if we study the explanation we find that whatever I get down explained to you earlier is covered in this interpretation and if we go by the definition of agreement apt(p) in the section 2(e) Every contract and every im soulfulnessate of addresss is forming the shape for each other is an agreement.Now if we analyse thisdefinition and I pack explained it earlier that agreement or t he promise consist of both things offer and acceptance. permit us see the some definition aban assumeed by the thinkers. Definition given by Mr. Polak Every agreement and promise enforceable at law is a contract and Sir Salmond has defined a contract is an agreement creating and defining obligation between the parties. If we analyse the definition given by gamey jurist and the definition given in the Indian Contract Act, we reach on this conclusion that to make an agreement enforceable and then we can encrypt into a contract. Now the question arises that what are those things which can make an agreement enforceable in the eye of law. Since, we have analyze the portion of the agreement very substantially, that it is do up of two things offer and acceptance. produce is the expression of the desire by the one party in front of the other party to give an assent and acceptance is the assent given on the offer. 4. Enforceability in an AgreementNow we will move on to the points whi ch bring the enforceability in the agreement and if the enforceability is added it is include it will constitute along with an agreement it will constitute a contract. The first and foremost point which we had discussed is that there has to be an offer and there has to be an acceptance. As you whap very wellhead that without two parties or more than two parties we cannot assume into a contract. So in a contract there has to be more than two parties and one party will make an offer to the other party. The other party will give an acceptance on it. This is the fundamental essential to convert or to bring the enforceability in agreement. The second important essential element is that there has to be a uncaring accept between both the parties. Now this particular word escaped press to is made up of two words consent and it should be free.As I mentioned that each element will be dealt by me later on in great detail therefore I am providing you the brief introduction of these elem ents. The consent is the meeting of the mind and both the parties agree upon the same thing in a same sense it is give tongue to that there is a consent. But it will be free provided it is not caused by or provided the consent is not obtained by cohesion, indefensible influence, caper and misrepresentation. In very simple line I will explain coercion center thereby if one party forcibly compelling the other party to acquaint into the contract it is state that coercion has been applied on the other party. For drill A by threaten to kill him enters into a contract with him it is verbalize that A has entered into a contract with the B by coercion.Undue influence, whenever there is unjustifiedinfluence, one party is always in a stronger position and other party is always at a weaker position. The stronger party morally pressurised the weaker party to enter into the contract and weaker party enters into the contract without the free will. It is said the undue influence has been exercised. What is the fraud? The fraud means when one party purposely or deliberately or with the inclination to cheat the other party, to deceive the other party, enters into the contract it is said that fraud has beenexercised by the party and misrepresentation meaning thereby, a statement which is not true but the party making it believe it to be true it is said that misrepresentation have collectn place so if we have got the four element if the consent is called by these four element it is said that it is not a free consent and contract enter into by the party without free consent even not having enforceability call we are now dealing with those point which will bring the enforceability with the agreement so that it become a contract.We are here studying the point which will take the agreement to the contract. These points I am discussing, again I am repeating in very very brief manner. The other point which is very important to bring the enforceability is the parties shoul d be adapted to enter into the contract. Without going into the details if we say all parties are competent to enter into the contract except the tether parties, if we exclude these lead parties from the agreement there will be enforceability sothat agreement will become a contract and these parties are if the contract is enter into by the minors and minor is a soulfulness who is not having age of 18 if the contract has been enter into by the person of unsound mind it is said that it is not enforceable he is not competent to enter into the contract and if the people freeze by law if they enter into the contract since they do not have content to enter into the contract it cannot become a contract and they dont have capacity to enter into the contract. Therefore if we say, if these three people are present in each agreement that agreement cannot become a contract and except these three people if any person enter into the contract that agreement will have enforceability.5. Lawfu l Object and ConsiderationNow I move on to other point that is cognise as the comportment of the agreement should be rule-governed and the regard which is given should alike be lawful. There are two things, determination of the contract should be lawful as well as the contemplation given to light upon the physical butt should also be lawful. First of all I will take up what do we mean by setting. Consideration the law says is that something in rally like if you go to the market to buy 1 kg sugar you give 35 rupees to the shopkeeper and the shopkeeper gives you 1kg sugar.For the shopkeeper, 35rupees is a consideration and for you, sugar is a consideration. So there is an exchange between the two parties therefore there has to be a consideration but the consideration should be lawful and object of the contract should also be lawful. Now law says what is lawful object? and what is lawful consideration? In the Law has not defined in a positive manner, law have defined that what is wrong. If the law says if any object and consideration does not fall within these lines then it is automatically lawful object and lawful consideration.Meaningthereby, we go negatively to explain what is the lawful object? And what is the lawful consideration? Now suppose, A says to the B that if you will kill the C I will give fifty thousand rupees. Now in this typesetters case when A says to the B to kill the C, the object is not lawful as well as the consideration which is trenchant to kill the C is also not lawful. Therefore the object of the contract should be lawful but I will mention certain points which are state by the law that they are toughened as wicked therefore they are not applicable or they dont have any lustiness in the eye of law. Number one is If it is fraudulent the object of the contract is to do some fraud then it will be handle as the object of the contract is not lawful. For example if A, B and C together decide and cheat the D they make a pla n to cheat D or to play a fraud with the D it is unlawful and object of the A, B and C of the plan is unlawful.6. Objects Forbidden by LawIf the object of the contract is command by law, when we say it is forbidden by law meaning thereby the law does not permit that if the object of the contract is forbidden by law then it will not be enured as a point of enforceability in an agreement. For example if A having a breathingmarried wife enters into a contract to marry another lady. Now here in this example the object of the contract is forbidden by law and if we reside upon we will find that it is written in the Hindu law that a person if he is having a married wife living with him cannot marry the another lady. So if the object is forbidden by every by the law or by the state legislation or by the Central Government if they have enacted any law and if it is forbidden and if we try to enters into a contract which is forbidden by law that will be treated as unlawful object.The next point in the unlawful object andconsideration is that if the object is permitted it will defeat the provisions of the some other law and if we take the example we find that suppose in a company it is mentioned that a person if he comes to attend a meeting he will be given one hundred twenty-five rupees for example as a stipend to attend the meeting and 25 rupees as a allowance. Now if we are fine-looking the allowance with an intent to evade the income evaluate then it will be treated that object of expectant the 25 rupees with an intention of evading the income tax then we can say here also the object of the contract is not lawful and if it is injurious to the other party.If two parties enter into the contract to smart somebody that object is also unlawful and if the object of the contract is immoral. Now the definition of the morality will depend upon the bill of the society but yet if we are promoting the prostitution, that is considered as to be an immoral and if the tw o parties enters into the contract which promotes the prostitution, that object of the contract is also unlawful but last but not the least heading in the unlawful object and consideration is that it should not be against the frequent polity. Now public policy is a very blanket(a) term. Public policy has been defined by polaris always a situational.eminent jurist in different manner itWhatever is suitable according to the step of thesociety can be include in the heading of the public policy. We quondam(prenominal) call it that public policy is fretful horse. We can include any heading in the public policy. Like, for example lately the Supreme Court has given a judgement in which they have specifically mentioned that no construction activity will take place in Bombay and other parts of the country after 10 Oclock in the night. Now this decision has been given in the following of the public policy. If you recall there is a judgement that during the Navratras the dandiyas are n ot allowed after 10 oclock in certain states except Gujarat because the Gharba is the festival of the Gujarat. Dandiya is play during that particular period with the great fanaticism in the Gujarat because it has got an origin in the Gujarat. It originated from the Gujarat.So except Gujarat the Dandiyas will not be played in other part of the country after 10 oclock. This decision is given in the affaire of the public policy. So public policy is a very wider term. Yet we have decided certain heads which are included in the public policy. First is work with enemy, second is trafficking in the public offices, leash is interference with administration of justice, fourth is wedlock brokerage contracts, fifth is agreement charge to create interest oppose to duty, one-sixth agreement in restrain of enatic right, seventh agreement restricting personal liberty and the last but not the least is the agreement to commit a crime. So the object of the contract should be lawful and in this point we had study that what is lawful and it has not been explained but what is unlawful it has been explained.7. Agreement should not be say VoidNow we move on to another element which bring the enforceability in an agreement.The heading of that element is that an agreement should not bespecifically declared nullify. In the law of contract there are certain agreements which are declared by law that they are the void and they cannot be at any rate be converted into the contract and as we know void agreementsare the void from the very beginning.They cannot be converted into the contract, they are notenforceable they have no jimmy in the eyes of law. Now for your thingamabob I will mention the headings of the void agreements.The first and the foremost isagreements by person who are not competent to contract (Section-11), agreement under a vulgar mistake of fact material to agreement (Section-20), agreement with unlawful consideration or object (Section-23), agreement, the cons ideration or object of which is unlawful in part (Section-24), agreements without consideration (Section-25), agreement in restrain of mating (Section-26), agreements in restraint of trade (Section-27), agreements in restrain of legal proceedings (Section-28), agreement, the meaning of which is uncertain (Section29), wagering agreement (Section-30) and agreement to do impossible act (Section-56). If we look at the list we find that any agreement which is falling under these categories or under any of these categories will be known as the void agreement it cannot be converted into the contract.If I move on to anotherelement of the enforceability and that is the agreement must be certain. When we say the agreement must be certain meaning thereby when offer is made to another party it should have the element of certainty. It should not be weigh. The acceptor or the promisee should not derive the different meaning out of it or it should not be confusing also. For example if A says to t he B that he would like to make do the fifty tins of the oil. Now this offer by A to the B is uncertain. It is not giving meaning, which oil he would like to cheat to B. Is he would like to get by the coconut oil or he would like to sell the mustard oil. He has not mentioned it, therefore, inagreement which is verbalized or agreement which is given to the other party should be certain and the last point to bring the enforceability is known as that performance of the agreement should not be impossible. For a very simple example if a girl says to a son that you bring the stars from the sky and then I will marry you.It is impossible act.It can not be converted into thecontract it is lacking the enforceability because we know we can not bring the stars from the sky. If A says to the B that I will give you 1 hundred thousand rupees if you join the two parallel lines, we know two parallel lines do not meet.Anotherexample is if A says to B that he will show the B the hole-and-corner(a ) treasure by deceit then it is also an impossible act because by magic we cannot show the hidden treasure. Therefore, these are the elements which has been explained to you if they are available in toto, if they are available as it is in an agreement then it will become a contract.If one single essential element of this is absent or oneessential element of the valid contract is absent or missing then it cannot become a contract that agreement will simply remain an agreement because it is lacking one of the essential element of enforceability. Therefore to reach at the level of the contract we have to fulfil all these requirements.Therefore we say allcontracts are agreement but all agreements are not contract because to travelat the stage of the contract, to reach at the stage of the contract we had to have these elements.