EDURYNUS

 Capacity refers to the competence of the parties to make a contract. It is one of the essential element to form a valid contract.  According to Indian contract act, 1872 ''every person is competent to a contract who is of the age of majority , who is of sound mind and is not disqualified by law from contracting by any law'' .  (1) Age of Majority  In India, the age of majority is regulated by the Indian Majority Act, 1875. According to the section 3 of Indian Majority Act, 1875 ''Minor means a person who has not yet attained the age of 18 years'' The age of majority being 18 years, a person less than that age even by a day would be a minor for the purpose of contracting.  Position of agreement with Minor  (i) A contract made by or with a minor is void ab-initio : A minor is not competent to a contract and any agreement with or by a minor is void from the very beginning. [ case of Mohori Bibi vs Dharam Das Ghosh ]   (ii) No ratification after atta...

According to the section 31 of the India Contract Act, 1872  A contract to do or not to do something, if some event, collateral to such contract, does or does not happen.  Contracts of insurance, indemnity and guarantee fall under this category.  Essentials of a Contingent Contract are: 1. The performance of a Contingent Contract depends upon the happening or non-happening of some future event. 2. The event must be collateral to the contract and not part of the contract. 3. The event happening must be uncertain. 4. The contingent event must not be a mere 'will' of the promisor. Rules Relating to Enforcement: 1. Enforcement only on happening of an        event: Such contract can be enforceable by law only when the collateral event has taken place. If the event becomes impossible, such contracts become void.  2. Contracts contingent upon the non-happening of n event: Such contracts can be enforced when the happening of that event becomes imp...

Partnership implies contractual co-ownership oof business. It is a relationship between two or more persons who have agreed to share profits of a business carried on by all or anyone of them acting for all. The contract or agreement an agreement signed is enforceable by law called deed is the essence of partnership may be verbal or written.  Features of Partnership-  1. Agreement:  There must be an agreement to form a partnership. Any such agreement may be express or implied.  2. Business There must exist a business to form a partnership firm. Term business shall include every trade, occupation and profession. 3. Two or more persons: There must be at least two persons to form a partnership and all such persons must be competent to contract. The maximum limit of number of partners is 50 and minimum is 2 in any association or partnership firm. 4. Profit Sharing: The sharing of profits is an essential feature of partnership. Partners must agree to share the profits in a...

There are various types of partners in a partnership firm but before we go through the different types of partners we must give a look on to The Partnership Act, 1932. Definition or Meaning of Partnership, Partner, Firm and Firm Name Partnership is the relation between two or more persons who have agreed to share profits of a business carried on by all or any one of them acting for all.  Persons who have entered into partnership with one another are called individual  Partners, and collectively  a Firm, and the name under which their business is carried on is called the  Firm name. Types of Partners in a Partnership Firm 1. Active or Ostensible partners: Partners who take an active part in the conduct of the partnership business are called actual or Ostensible partners. Whenever they are retiring from firm, they shall provide a public notice to this effect and all concerned. If any such partner become insane or permanent incapable, this might be a ground for dissolu...

What is Consideration? Section 2(d) of the Indian Contract Act, 1872 defines consideration as- "When at the desire of the promisor,  the Promisee or any other person has done or abstained from doing something, or  does or abstains from doing, or  promises to do or promises to abstain from doing something,           Such an act or abstinence or      promise is called a consideration for the promise.  Essential elements of Consideration 1. Consideration must move  at the desire of the promisor:   Consideration must be offered by the promisee or the third party at the desire or request of the promisor. 2. Consideration may move from promisee or any other person:   When at the desire of the promisor, the Promisee or any other person does something such an act is consideration.  3. Executed and Executory Consideration:  A consideration which consists in the performance of an act is said to be executed....

What is a Contract? According to section 2(h) of Indian Contract Act, 1872 " an agreement enforceable by law is a contract." The contract involves- (I) An Agreement (II) Enforceable by law Agreement According to section 2(e) of Indian Contract Act, 1872 "every promise and every set of promises, which from the consideration for each other, is an agreement" Promise A person makes a proposal. when it is accepted by other, it becomes a promise Promisor   : Person who makes an offer Promisee   : Person who accepts the offer  Agreement = offer/proposal + acceptance Enforceability by Law An agreement to become a contract must give give rise to a legal obligation which means a duly enforceable by law.  Contact = Accepted Proposal/Agreement + Enforceable by Law  Essentials of a Valid Contact According to section 10 of the Indian Contract Act, 1872, following are the essential elements of a Valid Contact: 1. Offer and Acceptance or an agreement: Proper offer and proper ac...