Section 11: 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, and who is of sound mind and is not disqualified from contracting by any law to which he is subject. Section 12: What is a sound mind for the […]
Category: Facts
Indian Legal System > Civil Laws > Indian Contract Act, 1872 > Invitation to Offer An offer must be distinguished from an invitation to offer (Invitation to treat by English Law). An invitation to offer is an action inviting other parties to make an offer to form a contract. These actions may sometimes appear to […]
The Indian Contract Act clearly states that there cannot be a stranger to a contract. It means any third party which is not a part of the contract for breach of contract. There are some exceptions. These exceptions are explained through the Doctrine of Privity of a Contract. The Indian Contract Act. 1872, allows the […]
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Acceptance Ss. 2(b), 7, 8
Indian Legal System > Civil Laws > Indian Contract Act, 1872 > Acceptance In contract proposal and acceptance of proposal are important ingredient. In last few articles, we have discussed, proposal, types of proposal, revocation of proposal. In this article, we shall discuss another important ingredient of contract that is acceptance in details. Section 2(h) […]
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Types of an Offer
Indian Legal System > Civil Laws > Indian Contract Act, 1872 > Types of an Offer A proposal is main ingredient of a valid contract. The term “proposal” of the Indian Contract Act is synonymous to the term “Offer” in English law. Section 2(a)of the Indian Contract Act, 1872 defines proposal as “when one person […]
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Proposal or Offer
Law > Civil Laws > Indian Contract Act, 1872 > Proposal or Offer In contract proposal and acceptance of proposal are important ingredient. In this article, we shall discuss proposal in details. Section 2(h) of the Indian Contract Act , 1872, defines the term ‘Contract’ as “An agreement enforceable by law is a contract.” Section […]
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Valid Agreement
Law > Civil Laws > Indian Contract Act, 1872 > Valid Agreement A contract is an agreement which is enforceable by law. Hence we use word contract it satisfies all legal requirement. Hence the word “Void contract” is wrong. It should be “void agreement”. Thus contracts can only be valid or voidable. The term “proposal” […]
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Elasticity of Demand
The elasticity of demand shows the reaction of one variable with respect to the change in other variables on which it is dependent. Thus elasticity is an index of reaction. In economics, elasticity refers to a ratio of the relative changes in two quantities. It measures responsiveness or sensitiveness of one variable due to the change […]
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The Law of Demand
Statement: Demand varies inversely with price. Assumptions of the law There is no change in the income of consumers. There is no change in the quality of the product. There is no substitute for the commodity in the market. The prices of related commodities (complements) remain the same. There is no change in customs, tastes, […]
Problem of Choice In any choice problem, there is a feasible set of alternatives. The alternatives which are available to the individual constitute this feasible set. The individual is assumed to be clear in her mind about her likes and dislikes (preferences) and has the capacity to compare any two alternatives (rational) in the feasible […]