Law of Contract 2Nd Semester Notes

The law of contract is a vital component of any legal system. It deals with the formation, performance, and enforcement of agreements between individuals or entities. As a student pursuing a legal studies degree, it is essential to have a thorough understanding of contract law. This article discusses the crucial points to note during the 2nd Semester of Law of Contract.

1. Offer and Acceptance

The first essential element of a contract is the offer. An offer is a proposal to enter into a contract made by one party to another. It must be clear, certain, and communicated to the other party. The second element is acceptance. Acceptance is the expression of agreement to the terms of the offer. It must be unconditional and communicated to the offeror.

2. Consideration

Consideration is the value that each party brings to the contract. It can be in the form of money, services, goods, or a promise to do or refrain from doing something. Consideration must be sufficient but need not be adequate.

3. Intention to Create Legal Relations

For a contract to be binding, the parties must have the intention to create legal relations. This means that the parties must demonstrate that they intend for the agreement to be legally binding. In commercial contracts, the intention is usually presumed. In other agreements, such as social or domestic ones, the intention may not be presumed.

4. Capacity

Capacity refers to the legal ability of a person to enter into a contract. For instance, minors, people of unsound mind, and intoxicated persons may lack the capacity to enter into a contract. In such cases, the contract is voidable at the option of the person without capacity.

5. Legality

The subject matter of the contract must be legal. Contracts to commit illegal acts or against public policy are not enforceable.

6. Privity of Contract

Privity of contract refers to the relationship between the parties to a contract. Only parties to a contract can enforce it. A third party cannot enforce a contract or be bound by it.

In conclusion, the law of contract is a critical aspect of the legal system. The 2nd Semester of contract law covers essential elements such as offer and acceptance, consideration, intention to create legal relations, capacity, legality, and privity of contract. Understanding these concepts is necessary for any student pursuing a career in law.