DISCHARGE OF CONTRACTS

INTRODUCTION As per the Indian Contract Act, 1872, discharge of contract means “termination of contractual relationships between the parties”. The term “discharge of contract” refers to the end of the parties’ contractual relationship. When a contract ceases to operate, i.e. when the rights and responsibilities generated by it expire, it is said to be discharged. Contracts do not have to be fulfilled under the following circumstances: If the parties to a contract agree to Novation, Rescission, or Alteration, the original contract does not have to be performed, according to Section…

E-CONTRACT

INTRODUCTION  In recent times, the world of commerce has been extended to a much greater extent. From buying a food packet to satisfy our hunger to buying a huge sofa set, has become one of the necessary things of the time. Today, the world is so busy in their lives that they are lethargic to go to market and select their purchases. Hence, they simply download an app, choose the best quality product which suits their range with one click, add it to the cart and order it, at the…

Remedies for Breach of Contract

Introduction When one thinks about “Remedies” in any form of contract, the only Latin maxim that comes to mind, “Ubi Jus Ibi Remedium” which denotes that where there is a right there is a remedy. There is no value of a contract, being the foundation head as a set of rights and obligations to the parties if there had been no remedies to enforce the rights. The party committing the breach of contract is called the guilty party and the party bearing the loss caused due to the breach is…

Concept of Free Consent

Introduction For an agreement to be a valid contract, it should meet the requirements of the same under Section 10 of the Indian Contracts Act, 1872. These requirements include free consent of the parties, lawful consideration with a lawful object, and not expressly declared void. According to Section 10[1], “All agreements are contracts if they are made by free consent.” Thus, if an agreement is made without the free consent of the parties, it cannot be a valid contract, and it would be voidable or void. Meaning of Consent Section…

CAPACITY TO CONTRACT

Section 2(h) of the Indian Contract Act, 1872 defines a contract as an agreement that is enforceable by law. The ability or eligibility of partners to form a business contract is the most important aspect of a legitimate partnership arrangement. The legal ability of an individual or an entity to enter into a partnership is referred to as “capacity to contract”. Before signing a contract, the partner must be competent and meet the stipulated standards, according to business law. The capacity in contract law is defined under Section 11 of the Indian Contract Act, 1872.…

PRIVITY OF CONTRACT

INTRODUCTION The doctrine of privity of contract is a common law principle that states only the contracting parties can sue or enforce their rights and liabilities and, no third party or stranger can confer obligations on anyone who is not a party to the contract, even if the contract is in his benefit. Hence, under the doctrine of privity of contract, a third party cannot acquire rights under, be liable for or enforce a contract to which he is not a party. MEANING AND SCOPE The doctrine of privity of…

Contracts and Its Essentials

Introduction The law of contract in India is governed by the Indian Contract Act, 1872.  According to section 2 (h) of the Indian Contract Act, 1872 contract is an “agreement enforceable by law”[1]. The definition of contract can be divided into two parts i.e. agreement and enforceable by law. Section 2(e) of the Act[2] defines agreement as “every promise and every set of promises forming the consideration for each other”. To make a layman understand an agreement is an accepted proposal. An agreement is an umbrella term and for both…