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Types of Contract-II
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Explanation of types of contracts. Happy Learning :)

Priyal Agrawal
CS Student, AIR 21 in CS foundation,love Teaching, reading, travelling, novels, fashion freak, watch the lessons to knw more

U
Unacademy user
is this course help for interview of rbi grade b exam??
Harshit Shukla
a year ago
Yes. Sure
  1. Indian contract Act,1872


  2. About me Myself: PRIYAL AGRAWAL CS EXECUTIVE STUDENT & BCOM 2nd YEAR STUDENT CS FOUNDATION(AIR 22) HOBBIES: TO RED NOVELS, EXPLORING NEW THINGS FOLLOW ME ON UNACADEMY: https://unacademy.com/user/PriyalAgrawal


  3. IOn the basis of the performance of the contract 1. Executed Contract: The consideration in a given contract could be an act or forbearance. When the act is done or executed or the forbearance is brought on record, then the contract is an executed contract. Example: When a grocer sells a sugar on cash payment it is an executed contract because both the parties have done what thev were to do under the contract. 2. Executory Contract: In an executory contract the consideration is reciprocal promise or obligation. Such consideration is to be performed in future only and therefore these contracts are described as executory contracts. Example: Where G agrees to take the tuition of H, a pre-engineering student from the next month and H in consideration promises to pay G 1,000 per month, the contract is executory because it is yet to be carried out.


  4. Unilateral or Bilateral are kinds of Executory Contracts and are not separate kinds (a) Unilateral Contract: Unilateral contract is a one sided contract in which one party has performed his duty or obligation and the otherD party's obligation is outstanding Example: M advertises payment of are ward of 5000 to any one who finds his missing boy and brings him. As soon as B traces the boy, there comes into existence an executed contract because B has performed his share of obligation and it remains for M to pa the amount of reward to B. (b) Bilateral Contract: A Bilateral contract is one where the obligation or promise is outstanding on the part of both the parties. Example: A promises to sell his plot to B for 1 lacs cash down, but B pays only 25,000 as earnest money and promises to pay the balance on next Sunday. On the other hand A gives the possession of plot to B and promises to execute a sale deed on the receipt of the whole amount. The contract between the A and B is executory because there remains something to be done on both sides.


  5. Essentials of a proposal/offer are- 1. The person making the proposal or o er is called the 'promisor' or offeror: The person to whom the offer is made is called the 'offeree and the person accepting the offer is called the promisee' or acceptor. 2. For a valid offer, the party making it must express his willingness to do or 'not to do' somethirn Mere expression of willingness does not constitute an offer. Example: Where 'A' tells ,B' that he desires to marry by the end of 2017, it does not constitute an offer of marriage by A'to B Therefore, to constitute a valid offer expression of willingness must be made to obtain the assent (acceptance) of the other. Thus, if in the above example, 'A, urther adds, Will you marry me, it will constitute an offer. ing 1111 111 1 11111111 .


  6. 3. An offer can be positive as well as negative: Thus "doing" is a positive act and "not doing", or "abstinence" is a negative act; nonetheless both these acts have the same effect in the eves of law Example: A offers to sell his car to B for 3 lacs is an act of doing. So in this case, A is making an offer to B. On the other hand, when A ask Bafter his car meets with an accident with B's scooter not to go to Court and he will pay the repair charges to B for the damage to B's scooter; it is an act of not doing or abstinence. 4. The willingness must be expressed with a view to obtain the assent of the other party to whom the offer is made.


  7. Kinds of offer


  8. (a) General offer: It is an offer made to public at large and hence anyone can accept and do the desired act (Carlill v. Carbolic Smoke Ball Co.). In terms of Section 8 of the Act, anyone performing the conditions of the offer can be considered to have accepted the offer. Until the general offer is retracted or withdrawn, it can be accepted by anyone at any time as it is a continuing offer. Case Law: Carlill Vs. Carbolic Smoke Ball Co. (1893 Facts: In this famous case Carbolic smoke Ball Co. advertised in several newspapers that a reward of 100 would be given to any person who contracted influenza after using the smoke balls produced by the Carbolic Smoke Company according to printed directions. One lady, Mrs. Carlill used the smoke balls as per the directions of company and even then suffered from influenza. Held, she could recover the amount as by using the smoke balls she had accepted the offer.


  9. (b) Special/specific offer:When the offer is made to a specific or an ascertained person, it is known as a specific offer. Specific offer can be accepted only by that specified person to whom the offer has been made. [Boulton v. Jones] Example: A' offers to sell his car to B' at a certain cost. This is a specific offer. (c) Cross offer: When two parties exchange identical offers in ignorance at the time of each other's offer, the offers are called cross offers. There is no binding contract in such a case because offer made by a person cannot be construed as acceptance of the another's offer. Example: If A makes a proposal to B to sell his car for 2 lacs and B, without knowing the proposal of A, makes an offer to purchase the same car at 2 lacs from A, it is not an acceptance, as B was not aware of proposal made by A. It is only cross proposal (cross offer). And when two persons make offer to each other, it can not be treated as mutual acceptance. There is no binding contract in such a case.


  10. (d) Counter offer: When the offeree offers to qualified acceptance of the offer subject to modifications and variations in the terms of original offer, he is said to have made a counter offer. Counter-offer amounts to rejection of the original offer. It is also called as Conditional Acceptance Example: 'A' offers to sell his plot to 'B' for 10 lakhs. 'B' agrees to buy it for 8 lakhs. It amounts to counter offer. It may result in the termination of the offer of 'A'. Any if later on 'B' agrees to buy the plot for 10 lakhs, 'A' may refuse. (e) Standing or continuing or open offer: An offer which is allowed to remain open for acceptance over a period of time is known as standing or continuing or open offer. Tenders that are invited for supply of goods is a kind of standing offer. 10