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Showing posts from August, 2016

Termination discharge of contract

Circumstances under which a contract is Terminated1. Introduction:A Contract gives rise to certain legal rights and obligations. Contract continues so long as the rights created thereby are exercised by the respective parties and their respective obligations are performed by them. When a contract is fully acted upon and honored by both the parties, we say it is performed or naturally discharged. However, there are certain eventualities wherein though the rights and obligations are not performed yet the parties are relieved of them, or alternatively, the rights and obligations under the contract come to an end otherwise than by due performance Some of these eventualities render the contract void while the rest turn it voidable. You may also read what agreements are void? However, the contract is put to an end / terminated / discharged by any of the following ways: 1. By Performance: Performance means the fulfillment or accomplishment of a promise, contract, or other obligations accordi…

Contingent and Conditional Contracts

Complete Explanation of Contingent ContractSection 33 34 35 of Contract Act 1872 1. Introduction:Every contact constitutes a relation between the parties to it and rights arising out of that relation but it does not follow that every contract creates a right immediately enforceable. The right created may be one which the parties agree shall be enforceable only on the happening of some future event as to which neither party makes any promise and which is therefore collateral to the contract, its import being merely to mark the moment at which a right created by the contract becomes enforceable. These contracts are called contingent. Section 31-36 of the Contract Act deal with these kinds of contracts.

2. Definition of Contingent Contract:Section 31 posits that a contingent contracts is a contract to do or not to do something, if some event collateral to such contract (i.e. not covered by the reciprocal promises in the contract), does or does not happen In such a contract the liability…

What is void agreement

Agreements specifically declared void under contract Act 1872 1. Introduction:Section 2(g) defines void agreement as ‘an agreement not enforceable by law is said to void.’ A void agreement does not give rise to any legal consequences and is void ab initio (from the beginning). According to Section 10, an agreement, in order to become a valid contract, must not be one of those that are ‘expressly declared’ to be void by the law.

The agreements that are expressly declared to be void are as follows: 2. Void Agreements:  Void agreements may broadly be classified as: (1) Agreements contrary to (express provisions of) law, and
(2) Agreements contrary to public policy. (A) Agreements Contrary to (the express provisions) of Law: (1) Agreement in Restraint of Marriage:Every individual enjoys the freedom to marry a person of his choice. An agreement which restricts a person from marrying is called an agreement in restraint of marriage. The law regards marriage as the right of every person. Accordi…

What is fraud Meanings and Essentials

The Term Fraud Complete ExplanationContract Act 1872 Section 17: Introduction:Fraud means to get advantage over another by false suggestions or by suppression of truth, and includes all surprise, trick, cunning, dissembling, any unfair way by which another is cheated Fraud vitiates all types of transactions and proceedings. Parties can never be said to have consented freely where fraud have been practiced to obtain the same. 2. Meanings and Definitions of Fraud:Following are some of the most important definitions of fraud: (1) Black's Law Dictionary:  Fraud is “An intentional perversion of truth for the purpose of inducing another in reliance upon it to part within some valuable thing belonging to him or to surrender legal right”.
(2) Section 17, Contract Act:‘Fraud’ means and includes any of the following acts committed by a party to a contract or with his connivance or by his agent, with intent to deceive or to induce another party thereto or his agent, to enter into the contra…

Rights And Duties of Lessor and Lessee

RIGHTS AND LIABILITIES OF LESSOR AND LESSEE A. RIGHT AND LIABILITIES OF THE LESSOR:Section 108 of Transfer of Property Act 1. DISCLOSURE OF MATERIAL DEFECTS SECTION 108 CLAUSE (A)In the absence of a contract or local usage to the contrary, the lessor is bound to disclose to the lessee any material defects in the property but only with reference to its intended use, provided (a) The lessor is aware of such material defect,
(b) The lessee is not aware of that material defect, and
(c) The defect is such that the lessee could not with ordinary care discover. Under this clause, the lessor is bound to disclose to the lessee only latent defects which are material, of which he is aware and of which the lessee is not aware. The lessee cannot claim that the lessor has committed a breach of the obligation imposed upon him under this clause, unless, (a) The defect is latent,
(b) The defect is material,
(c) The defect IS with reference to its intended use,
(d) The defect is one of which the lessor is awa…