Sage-Tips

What is contract in Indian Contract Act 1872?

The Indian Contract Act, 1872 defines the term “Contract” under its section 2 (h) as “An agreement enforceable by law”. In other words, we can say that a contract is anything that is an agreement and enforceable by the law of the land.

What are the essential elements of Indian Contract Act 1872?

Indian Contract Act, 1872 has stipulated following six essential elements to “Valid Contract”:

• Offer and acceptance.
• Intention to create legal obligation.
• Free consent of parties.
• Competent Parties.
• Consideration and.
• Lawful Object.

Which section of Contract Act 1872 define the term pledge?

Section 172 in The Indian Contract Act, 1872. 172. ‘Pledge’, ‘pawnor’ and ‘pawnee’ defined. —The bailment of goods as security for payment of a debt or performance of a promise is called ‘pledge’.

Who is competent to contract under the Indian Contract Act 1872?

Who are competent to contract. —Every person is competent to contract who is of the age of majority according to the law to which he is subject,1 and who is of sound mind and is not disqualified from contracting by any law to which he is subject.

What is the meaning of discharge of contract?

termination of
The discharge of the contract takes place when the obligations of the contract between the parties of the contract come to an end. This also ends the legal validity of the contract. The discharge of the contract is also referred to as the termination of the contract.

What is pledge and discuss rights of Pladgee?

1) Pledge is a bailment of goods as a security for performance of a promise or for payment of debts. 1) Lien is a right in which a person can possess the goods till the claim relating to them is satisfied. 3) The pledgee has a right over the goods pledged even if they are not in his possession.

What is consent under the Indian Contract Act 1872 Mcq?

Consent under the Indian Contract Act, 1872: According to section 13 of the act, “two or more persons are said to be in consent when they agree upon the same thing in the same sense which is also known as Consensus-ad-idem.

What is a sound mind for the purpose of contracting?

A person is said to be of sound mind for the purpose of making a contract, if, at the time when he makes it, he is capable of understanding it and of forming a rational judgment as to its effect upon his interests.

Why is discharge of contract important?

The discharge of the contract takes place when the obligations of the contract between the parties of the contract come to an end. This also ends the legal validity of the contract.

What is the purpose of pledge?

A pledge is a bailment that conveys possessory title to property owned by a debtor (the pledgor) to a creditor (the pledgee) to secure repayment for some debt or obligation and to the mutual benefit of both parties. The term is also used to denote the property which constitutes the security.

Who can pledge in Indian Contract Act 1872?

Section 178 of the Indian Contract Act states that the pledge between the mercantile agent and Pawnee can be valid if the agent has the possession of the goods with the consent of the owner and the Pawnee acted good faith and does not know about the original title of the goods.

Which one of the following section of the Indian Contract Act, 1872 relate to the rules no consent no agreement?

Section 15 of the Indian Contract Act,1872 states that coercion is committing or threatening to commit, any act is forbidden by the Indian Penal Code (45 of 1860) or the unlawful detaining or threatening to detain any property, to the prejudice of any person whatever, with the intention of causing any person to enter …

What is the Indian Contract Act?

The Indian Contract Act, 1872 prescribes the law relating to contracts in India. The Act was passed by British India and is based on the principles of English Common Law.

What was the Indian Act of 1876?

The “Indian Act” was a piece of legislature passed to govern and define the native peoples of Canada. Origin of The “Indian Act”. The first Indian Act, was passed in 1876 and was expanded considerably over the years to promote assimilation policy.

What is a contract act?

According to the Contract Act, a contract can be defined as an agreement which can be enforced by law. When two parties mean the same thing in the similar sense at the same time and work for the same purpose, they are termed to be at a point of agreement.