1.

What is a Contract
Contract is an agreement enforceable by law.
For the formation of contract, there must be an agreement and its enforceability at
law.
2. How an agreement becomes legally enforceable
Whether an agreement is legally enforceable or not would depend upon two factors:
- Intention of parties to enforce it legally
- Presence of all the essential elements of a contract.
3. Essential elements of a valid Contract
- an agreement
- which is legally enforceable
- where parties are competent to contract
- with a free consent
- for a lawful consideration
- for a lawful object
- which are not expressly declared to be void

4. Classification of Contracts
- Valid contracts
- Void contracts
- Voidable contracts
- Illegal contracts
- Express contracts
- Implied contracts
- Quasi contracts
5. What is an Offer
An offer is a statement of terms which it appears that you are willing to standby.
6. Essential elements of an Offer
- offer must be communicated to the offeree
- offer constitutes a willingness to do some act or abstinence
- offer must be made to some other person
- offer must be made with a view to obtaining the assent of the other
- offer may be express or implied
- offer may be conditional
- offer must be capable of creating legal relationship
- terms of the offer must be certain
- offer must not thrust the burden of acceptance on the offeree

7. Acceptance of an Offer
An acceptance is an expression, by words, conduct which clearly indicates that the person
making it agrees to be bound by the terms of the offer.
8. Essential elements of an Acceptance
- acceptance must be made by the party to whom the offer is made
- acceptance must be absolute and unqualified
- acceptance must be expressed in some usual or reasonable manner
- acceptance must be given within reasonable time
- acceptance cannot be made in ignorance of offer
- acceptance must be given before the offer lapses or revoked
- acceptance must be communicated to the offeror
9. What is Consideration
Consideration means something in exchange.
10. Essential elements of Consideration
consideration must move at the desire of the promisor
consideration may move from the promise or any other person
consideration is an act, abstinence, forbearance or detriment

11. Capacity of parties

Minor
Status of the contracts entered into by a Minor
Minor is a person who is not competent to contract.
Persons of Unsound Mind
Disqualified Persons
12. Free Consent
Two or more parties are said to consent when they agree upon the same thing in the same
sense.
Coercion
Coercion means forcibly compelling a person to enter into a contract
Acts amounting to Coercion
Committing any act forbidden by the Indian Penal Code
Threatening to commit any act forbidden by IPC
Unlawful detaining of property
Threatening to detain any property
Threat to commit suicide
Threat to prosecution

Undue Influence
Undue influence is an influence by which the exercise of free will and judgement of the
other is prevented.
Fraud
Fraud is the intentional misleading of one person by another.
Misrepresentation
Misrepresentation is a false representation of a statement of fact made innocently, without
any intention to deceive the other party.
Mistake
Mistake may be defined as an erroneous belief about something. Two parties cannot
believe same thing in the same sense when they are under a mistake.

13. Void Agreements

Agreement in restraint of marriage
Agreement in restraint of trade
Uncertain agreements
Agreements in restraint of legal proceedings
14. Quasi Contracts
Quasi contracts are the contracts which are not founded on actual promises. These contracts
are created by the circumstances, where one person has done something for another and the
other person has enjoyed the benefit of the same. Thus some legal rights and obligations are
created between the concerned parties even in the absence of real contract.
15. Performance of Contracts
Performance of contract means fulfillment of the legal obligations created by a contract.
Essentials of a valid performance
It should be unconditional
It must be entire and not of a part only
It must be made at proper time and place
The person making the tender must be able and willing to perform it
The tender must be made to the proper person

16. Discharge of Contract

A contract is discharged when rights and obligations created by it come to an end, i.e.,
contracting parties no more owes any responsibility or liability to each other.
- Discharge by performance
- Discharge by impossibility of performance
- Discharge by mutual agreement
- Discharge by lapse of time
- Discharge by operation of law
- Discharge by breach of contract
17. Remedies for Breach of contract
The law provides various remedies which can be availed in different circumstances.
An aggrieved party can
- cancel the contract which relieves him of all contractual obligations (Rescission)
- recover damages
- demand for specific performance
- demand injunction
- recover any consideration already paid to the breaching party

18. Contract of Indemnity

A contract by which one party promises to save the other from loss caused to him by the
conduct of the promisor himself or the conduct of any other person is called as a contract
of indemnity.
19. Contract of Guarantee
A contract of guarantee is a contract to perform the promise or discharge the liability of a
third person in case of his default.

Arbitration Law
1. Methods of Alternate Dispute Resolution
- Negotiation
- Mediation
- Conciliation
- Arbitration
2. What is Arbitration?
Arbitration means submission by two / more parties of their disputes to the judgment of
a third person called arbitrator who has to decide the dispute in an impartial
manner following principles of natural justice
3. Highlights of Arbitration Act, 1996
- Based on UNCITRAL to harmonize with different legal systems and to make
economic reforms effective
- Ensures fairness & efficiency in arbitral proceedings
- Flexibility & Autonomy to parties in proceedings

4. Areas where arbitration is suitable

5. Areas not referable to arbitration
6. Institutional Mechanism
- Indian Council of Arbitration (ICA)
- Indian Society of Arbitrators (ISA)
- International Centre for Alternate Dispute Resolution (ICADR)
7. Advantages of Arbitration
- Quick decision
- Minimum technical formalities
- Flexibility & Specialisation

Thank You