Conditions for contract

Conditions for contract

Conditions for contract Agreement Consideration Enforceable by law

How is a contract made?

How is a contract made? Proposer makes an unconditional offer to the other party. The other party accepts the proposal and the proposal becomes a promise and the parties are now legally promisor and promise The promise should have consideration; if the promise does not have consideration then it is not enforceable by law Promise

What is a promise?

You can say in simple words that promise is an accepted proposal.

When does the proposal become a promise?

Proposal becomes a promise when the proposal is accepted by the promise. If the proposal is accepted a contract is made, but if the proposal is not made then the there is no contract.

Example:

Mr. A proposes to Mr. B that he will teach him Economics and charge Rs 5000. There will be a contract if the Mr. B accepts his proposal. If Mr. B refuses then Mr. A cannot ask for the Rs 5000 as the proposal was never accepted and it did not become a promise.

Proposal

Proposal is made by the proposer and if this proposal is accepted by the other party it becomes a promise and after this acceptance the conditions of the contract are binding a on both parties. A mere proposal cannot give birth to a contract because the proposal has to be accepted by the other party to form a contract.

Void contact

Void contact A contract which ceases to enforceable by lay becomes void when it ceases to be enforceable.

Voidable contract

Voidable contract An agreement which is enforceable by at the option or on or more of the parties thereto, but not at the option of the other or others, is a voidable contract

Contract

Contract An agreement enforceable by law is a contract.

Void agreement

Void agreement An agreement not enforceable by law is a contract.

Reciprocal promises

Reciprocal promises Promises which form the consideration or part of consideration for each other, is an agreement.

 

 

Agreement

Agreement Every promise and every set of promises, forming the consideration for each other, is an agreement.

Consideration

When, at the desire of the promisor, the promise or any other has done or abstained from doing or does or abstains from doing, or promises to do or abstain from doing, something, such act or abstinence or promise is called consideration for the promise.