This slide about basic law of contract

2. What is contract?
 An agreement enforceable at law, made between two
or more persons, by which rights are acquired by one
or more to acts or forbearances on the part of the other
or others, is a contract.
 Section 2(h) of the Contract Act, 1872, provides the
authoritative definition of a contract, ―”an agreement
enforceable by law is a contract”

3. Example:
 When A offers to sell his horse to B for Tk.5000.00,
there is an obligation on A to sell and on B to buy the
horse at the stipulated price. Such an agreement is
therefore, enforceable by law.
But
 An agreement between A and B to go together to a
picnic does not create any obligation on either side
and is not, therefore, enforceable in law. The former
agreement is, therefore, a contract, while the latter is
not.

4. Elements of Contract
 Proposal or offer
 Acceptance
 Promise
 Consideration
 Agreement
 Enforceable by law
 Contract

5. Proposal or Offer
 where one person signifies to another his willingness
to do or abstain from doing something with a view to
obtaining the assent of that other to such act or
abstinence he is said to said a proposal.
Elements of Offer
 Signification of one‘s willingness;
 Willingness is expressed to another person;
 The willingness may be affirmative or negative;
 It has a definite object with the intention to create a
legal relation.

6. Acceptance
when the person to whom the proposal is made
signifies his assent thereto, the proposal is said to be
accepted.
Types of acceptance
 Express: ‘ ―I accept your offer.
 Implied: when both parties to a contract begin to
perform the terms of the contract.
 Conditional: Acceptance is conditional on the
happening of something.

7. Agreement
 ―Every promise and every set of promises, forming
the consideration for each other, is an agreement.
it is found that to be an agreement three elements are
necessary-
 it will be promise.
 it will form a consideration.
 the consideration will be formed for the parties each
other.

8. Consideration
 A valuable consideration in the sense of the law may
benefit interest.
 Section 2 of the contract act 1872 define consideration as
“When at the desire of the promissor, the promise or any
other person, has done or abstained from doing, does or
abstains from doing, promises to do or to abstain from
doing something, such act, abstinence or promise is called
a consideration for the promise"
Example
 Parag agrees to sell a house to Kamal for Tk. 800,000 For
Porag‘s promise , the consideration is tk. 800,000. For
kamal‘s promise the consideration is the house

9. Enforceable by Law
 A contract will be enforceable by law if the following
conditions are comply with.
 Competency of parties
 Free consent
 Lawful object
 Lawful consideration
 Not unlawful by law

10. Types of Contract
 Contracts depending on the mode of Creation
 Express contract
 Implied contract
 Contracts as regards the mood of time of performance
 Executed contract
 Executory contract
 Contracts as regards the number of parties
 Bilateral contract
 Unilateral contract
 Contracts as regards the mood of enforceability and validity
 Valid contract
 Voidable contract
 Void contract

11. Types of Contract (Cont.)
 Express contract
 The offer and acceptance of a contract if made in words, either expressed orally
or in written words, the contract will be considered to be an expressed one.
 For instance Mr. A proposes Mr.B, ‗I would like to sell my house for Tk. 3lack‘
and Mr.B replies ‗I agree‘- this deemed to be an express contract
 Implied contract
 An implied contract is formed when the offer and acceptance of a contract is
made without the use of any words, rather by some other means.
 For example, if a repairer starts to repair the watch of one person and the later
permits it remaining silent knowingly that the first person is doing so to get a
payment in exchange of this service, it will be treated as a implied by law

12. Types of Contract (Cont.)
 Executed contract
 If the conditions of a contract are performed as soon as
possible, the contract is said to be a executed contract
 Executory contract
 In this contract the obligations of the contract is
supposed to be performed at the later period of the
formation of the contract

13. Types of Contract (Cont.)
 Bilateral contract
 Where there are two or more parties of a contract and
both of the parties have their obligations on each
other, the contract is said to be a bilateral contract.
 Unilateral contract
 where one party has to fulfill his obligations whereas
the other party has already performed his obligations,
it is called unilateral contract.

14. Types of Contract (Cont.)
 Valid Contract
Valid contract is a contract in law.
 Void Contract
 A contract which ceases to be enforceable by law becomes void
when it ceases to be enforceable.
 Example:
 Contract entered into by minors, lunatics and insolvents are void
owing to the incapacity of such persons to contract.
 Voidable contract
 An agreement which is enforced by law at the opinion of one or
more of the parties thereto, but not at the opinion of the others,
is a voidable contract

15.  Thank You