Contigent contract, essential and reading rules.

 

Quasi contracts

STANDING OFFER

      IT IS NOT A CONTRACT.
Standing offer is a type of offer in which a person offers to another for continuous supply of certain type of good of definite quantity for a definite period at a definite rate.
Standing offer are used for supplying goods in large quantities. When certain tender is accepted, it is intimated that the offer remains open.
The contractor agrees that it is not compulsory required to order a special number of goods by principal during the term of any contract.

FOR EXAMPLE:
'A' offer 'B' to sell 50,000 published books at ₹1000 per book during the year 2017-18. It is a standing offer. If 'B' accepts it, neither 'A' is bound to supply full quantity nor 'B' is bound to purchase the full quantity. 'B' is only bound to supply as much quantity for which actual order is placed. As much quantity is specified in contract they are only bound for that.

OFFER AND ACCEPTANCE

‌DEFINATION OF OFFER
According to  Indian Contract Act "when one person signifies to another his willingness to do or obtain from doing anything, with a view of obtaining the assent of that another to such act or obtinence. He is said to make a proposal."

‌ELEMEMTS.
(1.) It must be an expression of willingness to do or abstain from doing (not to do) anything.
(2.) It must be made to another person.
(3.) It must be made to obtain the assent of other person to such act.
(4.) It must be definite.
(5.) It must be communicated to the offeree.        
       
Proposer,offeror and promisor are the terms used for the person who make offer. While offeree, promisee and proposee is used for the person to whom offer is made.
 
                             °CROSS OFFER
                               °STANDING OFFER
                               °COUNTER OFFER
   KINDS OF OFFER                           
                               °SPECIFIC OFFER
                               °GENERAL OFFER
                               °IMPLIED OFFER                

                               ° EXPRESS OFFER

‌FOR EXAMPLE: Mr.'X' wants to sell his house fully equipped with furniture to Mr.'Y' and Mr.'Y' accepted the offer. In this example, Mr.'X' is a proposer,offeror who is making a special offer to Mr.'Y', while Mr.'Y' is the offeree. Since the offer got accepted it become a contract and Mr.'Y' become acceptor.
‌ If the same offer was given in any newspaper as an advertisement, then it would have become a General offer.

‌DEFINATION OF ACCEPTANCE
According to Section 2(b), "When the person to whom the proposal is made signifies his assent thereto, proposal is said to be accepted. A proposal, when accepted, becomes a promise."

FREE CONSENT

Section 14 lays down that :- Consent is said to be free when it is not caused by:
°COERCION, as defined in section 15
°UNDUE INFLUENCE, as defined in section 16.
°FRAUD, as defined in section 17.
°MISREPRESENTATION, as defined in section 18.
°MISTAKE, as defined in section 20, section  21 and section 22.

ACCORDING TO INDIAN CONTRACT ACT

Section 15, "coercion is commuting or threatening to commit any act forbidden by Indian penal code, or the unlawful detainting or threatening to detain, any property, to the prejudice of any person whatever, with the intension of causing any person to enter into agreement".

Section 16, "A contract is said to be induced by undue influence as:-
(a.) The relation subsisting between the parties are such that one of the parties is in a position to dominate the will of the other, and
(b.) He uses the position to obtain an unfair advantage over the other"

Section 17, "Fraud means and include and of the following act done with intend to deceive or to induce a person to enter into a contract;
(1.) The suggestion that a fact is true when it is not true and the person making suggestion does not believe it to be true;
(2.) Active concealment of a fact by a person who has knowledge or believe of the fact;
(3.) Promise made without any intension of performing it;
(4.) Any other act fitted to deceive;
(5.) Any other act or omission as the law specifically declares to be fraudulent.

ESSENTIAL OF A VALID CONTRACT

° LAWFUL OFFER AND ACCEPTANCE.
° INTENSION TO CREATE A LEGAL  
  RELATIONSHIP.    
° CAPACITIES OF PARTIES.
° LAWFUL CONSIDERATION       
° FREE CONSENT
° CERTAINTY
° LAWFUL OBJECT
° POSSIBALITY OF PERFORMANCE

EXPLANATION :

The agreement becomes a contract if it fulfills the following essentials:-
°LAWFUL OFFER AND ACCEPTANCE:- An agreement requires two parties for its formation. One party who offers and the other who accepts it, then, an agreement comes into existence. An offer must be lawful and definite and acceptance must be absolute and unconditional. Therefore in order to form a valid contract there must be lawful offer and acceptance.
° INTENSION TO CREATE A LEGAL RELATIONSHIP:- The parties to an agreement must have an intention to create a legal relationship. An contract cannot come into existence, in absence of intention of parties to create a legal relationship among themself. An agreement to dine at a friends place, to attend a social or religious function etc, does not confer right of action since it does not create legal relationship.
°CAPACITIES OF PARTIES:- The parties to an agreement must be competent to enter into a valid contract. It implies that parties to an agreement must:
(1.) Be of age of majority ( i.e 18 years or more)
(2.) Be of sound mind and
(3.) Not be disqualified from entering into a contact.
°LAWFUL CONSIDERATION:- Consideration means 'something in return'. The parties to an agreement must give something and must get return with something only then it will be called consideration. A price for promise. An agreement without consideration is not enforceable by law.
°FREE CONSENT:- A consent is said to be free unless it is not affected by coercion, undue influence, misrepresentation, misunderstanding,
fraud and mistake. The parties must enter into an agreement without any pressure.
°CERTAINTY:- The term of agreement must be certain. These should not be vague otherwise agreement cannot be enforced.
°LAWFUL OBJECT:- The object of contract must be lawful. The object of contract is unlawful if:-
(1.) It is forbidden by law.
(2.) It is fraudulent.
(3.) It cause injury to the person or property of another.
(4.) It is of immoral nature or opposed to public policy.
° POSSIBILITY OF PERFORMANCE:- The agreement must be such as it is possible to perform. An agreement impossible to perform cannot be enforced.