Law of Contract
The law of contract is one of the major and vital parts of every transaction. We may not go or pass any day without applying contract. The laws relation to contract in our country is controlled and regulated by the contract Act 1872.
Definition of contract
According to section 2(h) of the contract Act 1872 and agreement enforced by law is a contract.
According to the Prof Salmond “The contract is an agreement creating and defining obligation between prates.”
According to Sir Fedric Pollock “Every agreement and promises enforceable act is a contract.”
According to Anson “A contract is an agreement enforce at law made between two or person by which right are acquired by one or more to act or forbearance on the part of the other.
Essential element of contract
An agreement becomes enforceable by law when it fulfills certain condition. This condition is the essential element of contract and these are giving below
- Parties to contract
- capacity of the prates
- Lawful offer
- Lawful acceptance
- Lawful consideration
- Free consent
- Intention to create legal relation
- Lawful purpose and object
- 10. specific subject matter
- 11. possibilities of performance
- 12. Not declared as void
- 13. Formalities
1. Parties to contract: There must be two or more parties to make a contract.
2. Capacity of the prates: All the parties to the contract must be major under the majority act 1885. Under this act a person becomes major in the age of 18. On the other hand he may be a person of sound mind and a person of unsound mind may not enter in to a contract.
3. Lawful offer: There must be an offer to make a contract. Here lawful offer means an offer which is supported by the contract Act 1872.
4. Lawful acceptance: There must be a lawful acceptance to make a contract. Here lawful acceptance means an acceptance which is supported by the contract Act 1872.
5. Lawful consideration: There must be a lawful consideration to make a contract. Here lawful consideration means an offer which is supported by the contract Act 1872.
6. Free consent: To make contract it is essential that the consent of the parties to enter in to the contract is free. Here free consent means the consent which is not affected by coercion, undue influence, mistake, misrepresentation, and fraud.
7. Intention to create legal relation: By a contract the Intention of the parties must be expressed they are creating a legal relationship.
8. Lawful purpose and object: A contract must be made to lawful purpose and object. Here lawful object means the object which is supported all existing laws of Bangladesh.
9. Certainty: The language and expression of the contract must be certain by which the actual intention of the parties is expressed.
10. Specific subject matter: In every case the subject matter of the contract must be specific.
11. Possibilities of performance: A contract may not be for such a form which is impossible to perform.
12. Not declared as void: A contract must be a form which is not declared as void with any relevant loss.
13. Formalities: A contract may be writer or oral and registered or none registered according to the provision of relevant to loss.