Sunday, 9 September 2012

CONTRACT ACT - PART V (OBJECT OF A CONTRACT, CONTINGENT & QUASI CONTRACTS)

Agreements enforceable by law are contracts.
The Contract Law is mostly Commonsense
Points for discussion as based on The Indian Contract Act 1872

OBJECT OF A CONTRACT


The object of an agreement is unlawful if:
  • It is forbidden by law; or
  • It is of such a nature that, if permitted, it would defeat the provisions of any law; or
  • It is fraudulent; or
  • It involves or implies injury to the person or property of another; or
  • The court regards it as immoral, or opposed to public policy.


Agreements opposed to Public Policy
  1. Trading with an enemy.
  2. Agreements interfering with the administration of justice: (Interference with the course of justice or Stifling prosecution or maintenance and champerty agreements.)
  3. Traffic in public offices.
  4. Agreements creating interest opposed to duty.
  5. Agreements unduly restraining personal liberty.
  6. Agreements interfering with parental duties.
  7. Marriage brokerage agreements.
  8. Agreements creating monopolies.
  9. Agreements to defraud creditors.
  10. Agreements to defraud revenue authorities.
  11. Agreements interfering with marital duties.

Agreements expressly declared void
  • Agreements in restraint of marriage
  • Agreements in restraint of trade (exception is the sale of goodwill, or agreements by partners under the partnership act)
  • Uncertain agreements (the meaning of which is uncertain)
  • Agreements in restraint of legal proceedings
  • Curtailing the period of limitations
  • Wagering agreements

 CONTINGENT CONTRACTS

A contingent contract is a conditional contract.
‘A contingent contract is a contract to do or not to do something, if some event, collateral to such contract, does or does not happen.’
Insurance agreements are best examples of contingent contracts.

QUASI CONTRACTS

These are contracts which are not founded on actual promises. These contracts are created by circumstances & are based on the maxim: no man must grow rich out of other person’s cost.
  • Supply of necessaries.
  • Payment of lawful dues by interested person.
  • Obligation of a person enjoying benefit of a gratuitous act.
  • Finder of goods.

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