Skip to main content

Contract Act

 Contract Act

The contract is an essential part of our day-to-day activity, contracts are not only formed between the business but can be between a customer and the company. The contract establishes the objectives as well as the functions of the parties.

A contract is defined in the simplest form in our Indian laws, it defines as the promise maybe t do something or to refrain from doing something.   The contract is the product of civilization. 

Before the contract law, there were various ways such as through ties of kinship or authority of religion. This showcase that people in earlier times used to have faith in the king or the religion they use to practice they didn't' have any laws which helped to govern the situation, it could also be that in those times there wasn't any requirement for such a law, in those time people used barter system in which transaction got completed at the same time. The Indian contract act was established by the Britishers in the 17th century. In the past few years, things have evolved and amended. 

The act mentions the legal requirement to enter into a contract. Section 10 talks about these requirements, it covers that person entering the contract shall be a minor as well as a citizen of the country. Sec3 of the Indian majority act provides that if a person has attained the age of 18 years old. The person should be of sound mind, which means that he should be capable to decide while making the contract (section 12). The person should not be disqualified under any law.

Case Mohori Bibee v. Dharmodas Ghose 

In this case, Dharmodas was a minor who had mortgaged his property in the favor of  Brahmo Dutt he was the moneylender for the money of Rs. 20,000. Mr. Kedar Nath was representing Mr. Brahmo Dutt, he knew the facts that the Dharmodas was a minor but the agreement mentioned that he was a major. the respondent's mother filed the case. In this, the court held that this contract is void as the party was a minor. Section 7 of the transfer of property act, mentions the person should be competent to contract, this act also requires the person to be competent to the contract, therefore this contract will be void.

Case; AT Raghava Chariar v. Srinivasa Raghava Chariar 

In this case, the minor got into a mortgage contract with the age of majority. The minor extended the money but the other party decided not to honor the agreement. The court held that the agreement so enforced is a kind f a promise by the mortgagor who is competent to honor on the other hand the money advanced was by the minor who is performed his action therefore this will be enforceable. But the parties are not competent to contract, which means that the agreement shall be void.

   These are the ingredients for making a contract valid, before making a contract one should consider these points.


Comments

Popular posts from this blog

INCOME TAX SECTION 32AD - Investment in new plant or machinery in notified backward areas in certain States

 Description (1) Where an assessee, sets up an undertaking or enterprise for manufacture or production of any article or thing, on or after the 1st day of April, 2015 in any backward area notified by the Central Government in this behalf, in the State of Andhra Pradesh or in the State of Bihar or in the State of Telangana or in the State of West Bengal, and acquires and installs any new asset for the purposes of the said undertaking or enterprise during the period beginning on the 1st day of April, 2015 and ending before the 1st day of April, 2020 in the said backward area, then, there shall be allowed a deduction of a sum equal to fifteen per cent of the actual cost of such new asset for the assessment year relevant to the previous year in which such new asset is installed. (2) If any new asset acquired and installed by the assessee is sold or otherwise transferred, except in connection with the amalgamation or demerger or re-organisation of business referred to in clause (xiii)or cla

60 Minute Marriage Counselling Session On Phone

Description A 60 minute phone call with an expert Marriage\Relationship Counselor to discuss your marriage\relationship related issues. Counselling aims to resolve issues and improve communication in a relationship. Couples’ counselling works with both people in the relationship, however sessions can start with one individual, working towards the involvement of the other partner. What's Included a) 60 minute phone call with the counselor where you can discuss all your issues and seek guidance. What's Not Included a) Counselling session via meeting

Send Legal Notice for Divorce

 India being a secular country derives a large part of its laws from various religious practices. One such area of law is Divorce law of India. A divorce case in India can be initiated by either party based on the procedure relevant as per the law applicable to the parties. However, the procedure for divorce always starts with sending a legal notice.   Either party can send a legal notice to the other spouse intimating his/her intent to initiate legal proceedings for divorce. Sending a legal notice acts as a formal way of communication by one party to the other acting as a warning and at the same time creating chances for a last attempt for conciliation, if possible. Connect with an expert lawyer for your legal issue   What is a legal notice for divorce? A legal notice refers to a formal communication to a person or the opposite party in a case, informing him/her about one’s intention to undertake legal proceedings against him/her. Therefore, a legal notice for divorce is a formal inti