CLASSIFICATION OF CONTRACT 2

Ø  CA FOUNDATION BUSINESS LAW SERIES LECTURE 3

CLASSIFICATION OF CONTRACT 2

 •    CONTENTS OF THIS LECTURE

1.       DIFFERENCE BETWEEN CONTRACT AND AGREEMENT

2.       DIFFERENCE BETWEEN VOID AND VOIDABLE CONTRACT

3.       DIFFERENCE BETWEEN VOID AGREEMENTS AND ILLEGAL AGREEMENTS

4.       DIFFERENCE BETWEEN TRADITIONAL CONTRACT AND E CONTRACT

•    DIFFERENCE BETWEEN CONTRACT AND AGREEMENT

·         CONTRACT

1.       SECTION 2(h) OF THE INDIAN CONTRACT ACT 1872 DEFINES AN AGREEMENT ENFORCEABLE AT LAW

2.       A CONTRACT INCLUDES AGREEMENT

3.       EVERY CONTRACT IS ENFORCEABLE

4.       THE SCOPE OF CONTRACT IS LIMITED AS IT INCLUDES COMMERCIAL AND LEGALLY ENFORCABILITY

5.       IT HAS LEGAL OBLIGATION

• AGREEMENT

1.       SEC 2(e) OF THE INDIAN CONTRACT 1872,EVERY PROMISE AND EVERY SET OF PROMISES FORMING THE CONSIDERATION FOR EACH OTHER IS AN AGREEMENT.

2.       EVERY AGREEMENT IS NOT ENFORCEABLE.

3.       THE SCOPE OF AGREEMENT IS WIDE AS IT COVERS DOMESTIC AND SOCIAL AGREEMENT

4.       AN AGREEMENT MAY BE LEGAL OR ILLEGAL

5.       NOT NECESSARY FOR EVERY AGREEMENT TO HAVE LEGAL OBLIGATIONS

•    DIFFERENCE BETWEEN VOID AND VOIDABLE CONTRACT

•    VOID CONTRACT

1.       SEC 2(j) OF THE INDIAN CONTRACT 1872, A CONTRACT CEASES TO BE LEGALLY ENFORCEABLE BY LAW IT BECOMES VOID

2.       INITIALLY IT IS VALID LATER ON IT BECOMES VOID DUE TO SOME SUPERVENING IMPOSSIBILITY

3.       CAN NOT BE ENFORCED BY LAW AND THIRD PARTY DOES NOT GET ANY RIGHT

4.       EVEN ON THE EXPIRY OF THE TIME,IT CAN NEVER BECAME A VALID CONTRACT

5.       A CONTRACT WHICH IS VOID DUE TO ILLEGALITY ALSO AFFECT COLLATERAL TRANSACTIONS

•    VOIDABLE CONTRACT

1. SEC 2(i) OF THE INDIAN CONTRACT 1872,AN AGREEMENT WHICH IS ENFORCEABLE BY LAW AT THE OPTION OF ONE OR MORE OF THE PARTIES,BUT NOT AT THE OPTION OF THE OTHER OR OTHERS IS A VOIDABLE CONTRACT.
2. IT IS VOIDABLE AT THE OPTION OF THE AGGRIEVED PARTY AND REMAINS VALID TILL CANCELLED BY HIM
3. A THIRD PARTY WHO DEALS IN GOOD FAITH BEFORE THE CONTRACT’S CANCELLATION ACQUIRES GOOD TITLE.
4. IT DOES NOT AFFECT THE COLLATERAL TRANSACTIONS

•    DIFFERENCE BETWEEN VOID CONTRACT AND VOID AGREEMENT

•    VOID CONTRACT

1.       SEC 2(j) OF THE INDIAN CONTRACT 1872, A CONTRACT CEASES TO BE LEGALLY ENFORCEABLE BY LAW IT BECOMES VOID

2.       INITIALLY IT IS VALID LATER ON IT BECOMES VOID DUE TO SOME SUPERVENING IMPOSSIBILITY

3.       CAN NOT BE ENFORCED BY LAW AND THIRD PARTY DOES NOT GET ANY RIGHT

4.       EVEN ON THE EXPIRY OF THE TIME,IT CAN NEVER BECAME A VALID CONTRACT

5.       A CONTRACT WHICH IS VOID DUE TO ILLEGALITY ALSO AFFECT COLLATERAL TRANSACTIONS

•    VOID AGREEMENT

1.       SECTION 2(g) OF THE INDIAN CONTRACT ACT 1872,AN AGREEMENT NOT ENFORCEABLE LAW BY LAW IS SAID TO BE VOID.

2.       VOID AGREEMENT IS VOID AB INITO

3.       REMAIN ONLY AGREEMENT AND NOT LEGALLY ENFORCEABLE

4.       THEY ARE NULL AND VOID AND WITHOUT LEGAL REMEDY

5.       AN AGREEMENT WITH MINOR IS VOID. THERE ARE CERTAIN AGREEMENT WHICH ARE DECLARED VOID BY THE LAW

•    DIFFERENCE BETWEEN VOID AGREEMENT AND ILLEGAL AGREEMENT

•    VOID AGREEMENT

1.       SECTION 2(g) OF THE INDIAN CONTRACT ACT 1872,AN AGREEMENT NOT ENFORCEABLE LAW BY LAW IS SAID TO BE VOID.

2.       VOID AGREEMENT MAY BE NOT BE ILLEGAL

3.       PARTIES OF VOID AGREEMENT MAY NOT BE PUNISHED

4.       DOES NOT AFFECT THE COLLATERAL TRANSACTIONS

•    ILLEGAL AGREEMENT

1. AN ILLEGAL AGREEMENT IS ONE WHICH IS NOT AS PER LAW OR VIOLATES THE RULES OF PUBLIC POLICY OR CRIMINAL IN NATURE
2. PARTIES TO ILLEGAL AGREEMENT MAY BE LIABLE FOR PUNISHMENT
3. ALL COLLATERAL AGREEMENTS ALSO BECOME VOID
4. 
   
   DIFFERENCE
   
   

•    E CONTRACT

1.       ON LINE/COMPUTER GENERATED

2.       DIGITAL SIGNATURE

·         TRADITIONAL CONTRACT

1.       WRITTEN/ORAL

2.       HAND WRITTEN SIGNATURE