CONTRACT ACT 1872

Prepared by : Abdul Moiz Imran Ashraf Prepared for : KUBS : Sir Mansoor Ali Shahani Karachi University Business School

Date :

12 June 2012

CONTRACT ACT 1872

Deals with promises which shall be legally binding Deals with Rights & obligations of the parties

CONTRACT ACT
An agreement enforceable by law
Agreement

Enforceability

AGREEMENT
Promise & set of promises forming consideration for both parties

Offer

Acceptance

ENFORCEABILITY
All essentials of valid contract must be fulfill
Lawful consideration Free & genuine consent
Competency of parties Lawful objects Agreement not declared void Legal formalities

OFFER

Definite terms General offer Must be communicated Must not be invitation or mere statement

ACCEPTANCE

Absolute & unqualified Must be communicated Prescribed mode Intention to fulfill terms Before termination of offer Cannot implied from silence

LAW FUL CONSIDERATION

Something for something
Exceptions Nature love and affection

Past voluntary services

Time bared debts Gift

Agency
Donate Remit by promise

FREE CONSENT

Coercion Undue Influence Fraud Misrepresentation Mistake

COMPETENCY OF PARTIES

Parties must be major not minor Parties must be of sound mind Parties must not be disqualified from any law

LAWFUL OBJECTS

Not forbidden by law Not defeat any provisions of law Not to be fraudulent Not involves injury of person of property of another Court not regard agreement as immoral Not opposed to public policy

AGREEMENT NOT VOID

Following agreements are void Agreement in restraint of marriage Agreement in restraint of trade Agreement in restraint of legal proceedings Uncertain Agreements Agreements by way of wager Contingent contract

PERFORMANCE OF CONTRACT
Parties must either Perform Offer to perform their promises

PERFORMANCE OF CONTRACT

Performance it take place when parties fulfill their obligations arising under a contract Offer of performance promisor makes an offer of performance of contract but promisee did not accept .

PERFORMANCE OF CONTRACT
Effect of refusal of offer of performance

Promiser is not liable for non performance of contract. Promiser does not lose his rights under a contract

PERFORMANCE OF CONTRACT
Persons by whom promise of performance should made Promiser himself Agent Legal representative

PERFORMANCE OF CONTRACT
Performance of reciprocal performance Mutual & dependent Mutual & independent Mutual & concurrent

PERFORMANCE OF CONTRACT
Discharge of contract By performance By mutual agreement By impossibility of performance By operation of law By breach By lapse of time period

NON PERFORMANCE OF CONTRAT

By novation , recission or alteration of contract. By remission of promise by promisee By recession of voidable contract By refusal to provide reasonable facility