Business Environment and Law-Law Of Contract (Indian Contract Act 1872)
Revocation Of Proposal And Acceptance-Law Of Contract
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“A proposal may be revoked at any time before that communication of its acceptance is complete as against the proposer, but not afterwards.”
Revocation
Of Proposal And Acceptance
“A proposal may be revoked at any time before that communication of its acceptance is complete as against the proposer, but not afterwards.”
“The communication of a revocation is complete… As against the person who makes it, when it is put into a course of transmission to the person to whom it is made, so as to be out of the power of the person who makes it as against the person to whom it is made, when it comes to his knowledge.”
Agreement to enter into an agreement upon terms to be settled afterwards between the parties is a contradiction in terms. It is absurd to say that a man enters into an agreement till the terms of agreement are settled; until those terms are settled, he is perfectly at liberty to retire from the bargain”.
Consideration is one of the elements of obligation. An agreement becomes enforceable only if it is supported by consideration. (Sec. 10) “All agreements are contracts if they are made… for a lawful consideration…” It clearly shows that consideration is an important pre-requisite of a valid contract. (Sec.25) “An agreement made without consideration is void…” Hence the rule is “No Consideration, No Contract.”
“A proposal may be revoked at any time before that communication of its acceptance is complete as against the proposer, but not afterwards.”
Communication Of Revocation
“The communication of a revocation is complete… As against the person who makes it, when it is put into a course of transmission to the person to whom it is made, so as to be out of the power of the person who makes it as against the person to whom it is made, when it comes to his knowledge.”
Agreement to Agree in Future
Agreement to enter into an agreement upon terms to be settled afterwards between the parties is a contradiction in terms. It is absurd to say that a man enters into an agreement till the terms of agreement are settled; until those terms are settled, he is perfectly at liberty to retire from the bargain”.
Consideration And Competence To Contract
Consideration is one of the elements of obligation. An agreement becomes enforceable only if it is supported by consideration. (Sec. 10) “All agreements are contracts if they are made… for a lawful consideration…” It clearly shows that consideration is an important pre-requisite of a valid contract. (Sec.25) “An agreement made without consideration is void…” Hence the rule is “No Consideration, No Contract.”
Tags : Business Environment and Law-Law Of Contract (Indian Contract Act 1872)
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