Skip to main content

Nudum Pactum under contract Act

                           Nudum Pactum under the Indian Contract Act, 1872


Introduction 

The Indian Contract Act, 1872, is the most important piece of legislation controlling Indian contract law. It establishes the law governing contracts in India. The Act is based on the ideas of English Common Law. It applies to all of India's states. It specifies the conditions under which contractual parties' commitments are legally enforceable. Under Section 2 of the Indian Contract Act, a contract is defined as an agreement enforceable by law (h). The Imperial Legislative Council passed the Indian Contract Act on April 25, 1872, and it went into effect on September 1, 1872. In India, an agreement becomes a valid contract when it is enforceable in a court of law. The enforceability of an agreement depends on the six essentials of a valid contract namely, offer and acceptance, intention to create a legal obligation, free consent given by parties, the competence of parties, consideration, and lawful objective. Thus, if any one of the single essentials of a valid contract is not satisfied the contract becomes invalid and unenforceable in a court of law.  


Nudum Pactum


The term ‘Nudum Pactum’ has been derived from Latin terminology which means a naked agreement. 

The adage denotes an agreement made without any consideration. As per law, a contract is only enforceable when it is inclusive of the basic requirement of consideration. Consideration is defined as a promise to pay money, valuable things, or any other perk as discussed by the parties engaged in the contract or agreement. Where there is no consideration that is a nudum pactum, and hence such a contract is neither enforceable nor valid. 

A nudum pactum might be made verbally or in writing. Since these agreements are unenforceable, they may not be pursued in court. This indicates that these agreements do not come under the categories of agreements that can lead to legal action. Such agreement may constitute a modification or exemption to an existing duty.

The contract, on the other hand, is regarded as legitimate if it is sealed. Furthermore, some contracts, such as bills of exchange, sealed documents, and promissory notes, bear consideration as a result of their forms. Even if there is no formal consideration inside them, they are regarded as genuine.

No nudum pactum is enforced under English law. Every day, an enormous number of agreements are formed, and it would be absurd to treat each one as a legally enforceable contract.

Anson states that when one understands the history of assumption it would be clear that even in ancient days there was speculation that an agreement which is without any consideration is legally binding and can parties be bound to perform such agreements. 

In 1756 Lord Mansfield stated that “All such agreements which are without consideration are merely a moral obligation.” This means that if an agreement is without consideration, then the performance of such obligation is mere moral duty and responsibility of the party performing it. But if the party does not perform such obligations, they cannot be legally bound to perform such obligations. 

Under English law contracts can be formed in two ways namely, contract with consideration and contract by a seal. Contract with consideration is an agreement that satisfies all the six essentials of a valid contract. Whereas, contract by the seal is an agreement formed under a seal but without consideration.
Labels:

Comments

Post a Comment

Popular posts from this blog

Concept of constitutionalism

  Concept of constitutionalism Who Started Constitutionalism? John Locke - The English Bill of Rights is a foundational constitutional document that helped inspire the American Bill of Rights. Political theorist  John Locke  played a huge role in cementing the philosophy of constitutionalism.  Constitution is a written law which describes the structure of Government, the rules according to which the Govt. must work and the boundaries within which the Govt. must work. Constitutionalism   can be defined as the doctrine that governs the legitimacy of government action, and it implies something far more important than the idea of legality that requires official conduct to be in accordance with pre-fixed legal rules. Constitution constitution is the document that contains the basic and fundamental law of the nation, setting out the organization of the government and the principles of the society. Basic norm (or law) of the state; System of integration and organi...
Post a Comment
Read more

business tips

1. Have a clear vision for your business and strive to achieve it. 2. Hire great people and give them ownership in the company. 3. Provide excellent customer service. 4. Establish yourself as an expert in your field. 5. Develop relationships with key suppliers, customers, and partners. 6. Keep track of your finances and invest in marketing and innovation. 7. Utilize digital platforms to reach a larger audience. 8. Take calculated risks and back yourself. 9. Continuously strive to improve your products and services. 10. Make customer satisfaction your priority.
Post a Comment
Read more

Effects of Non-Registration

 Effects of Non-Registration The Companies Act, 2013 evidently highlights that the main essential for any organization to turn into a company is to get itself registered. A company cannot come into existence until it gets registered. But no such obligation has been imposed for firms by the Indian Partnership Act, 1932. If a firm is not registered it does not cease to be called as a firm, it still exists in the eyes law. Certainly, such a big advantage is not absolute but is subjected to a lot of limitations which we will study further. Non-registration of a firm simply means that the business skips the formalities of incorporation and ceases to exist in the eyes of the law. section 58 of the Indian Partnership Act, 1932 deals with the procedure of incorporation. Likewise, the meaning of non-registration is the exact opposite of registration, meaning when a firm does not go through the procedure of incorporation or start carrying on activities without getting registered. Effects of ...
Post a Comment
Read more