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Element of a contract - Coggle Diagram
Element of a contract
2. Acceptance
Definition
Section 2 (b) of Contracts Act:
The proposal made by the other party has already been agreed, or it can be said that the proposed proposal is acceptable to both parties. It can be expressed or implied by the offeror’s behavior. If the proposal is accepted, it becomes a promise.
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Mode of acceptance
Postal Rule
Section 4(2) of Contracts Act provides that the acceptance is complete as against the offeror when it is put in the course of transmission to him.
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Revocation of acceptance
Section 5 (2) of Contracts Act: "An acceptance may be revoked at any time before the communication of the acceptance is complete as against the acceptor, but not afterward."
The offeree can withdraw or cancel the acceptance anytime and anywhere before the acceptance letter reaches the offeror.
3. Consideration
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Definition
Section 2(d) CA 1950: "When at the desire of the promisor, the promisee or any other person has done or abstained from doing or promises to do or abstain from doing, something, such act or abstinence or promise is called consideration of the promise".
Consideration is act or promise that done by one party as required by the other party in return for his promise.
Exceptions
- Is to compensate for past voluntary act
Section 26(b)
Condition
- Promisee did the act voluntarily
The promisor promises to give something to the promisee because the promises have done something voluntarily before the promise was made
- Is to compensate an act the promisor was legally compelled to do
Section 26(b)
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It must be to compensate, wholly/partly the promisee for the act-
- Is made out of natural love & affection
Section 26(a)
The agreement must fill the following condition such as made in writing, registered and made due to natural love & affection between parties standing in near relation to each other.
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- It is to pay a statute-barred debt
Section 26(c)
Although a debt cannot be recovered because of the statute-barred, it can be recovered if there is a fresh promise by the debtor to pay or the promise is made writing and signed.