A Lecture on Law of Contract.doc - 1 Law of contract The...

Law of contract
The law of contract as practice in Bangladesh can be divided into two
broad categories:
1. General laws relating to contract : (SS: 1-75)
a) Formation of contract;
b) Performance of contract;
c) Breach of contract & its remedies.
2. Laws relating to some particular types of contracts :
a) Contract of indemnity and guarantee; (124-147)
b) Contract of bailment & pledge; (148-181)
c) Contract of agency, (182-238)
1. General laws relating to contract :
A question may rise that how a contract is to be made? A contract may
be made by expressly or impliedly. An express contract may be written
or oral. However, how does made an implied contract? Example: shoe
shiner/chanachor ----------------------------------
Contract : Section 2 (h) of the Contract Act, 1872
An agreemen t enforceable by law is a contract.
Enforceable by law means-
i. competency of parties;
ii. free consent of the parties;
iii. objective must be lawful; (the object for which the agreement
has been entered into must not be fraudulent or illegal or
immoral or opposed to public policy or must not imply injury
to the person or property of another, S: 23)
iv. consideration must be lawful;
v. not declared by law as void.
Agreement: Section 2 (e) of the Contract Act, 1872 ( Consensus-ad-
idem means both the parties to an agreement in the same sense and
at the same time.)
Two types of agreement –
1. Agreement enforceable by law; and ( agreement for purchase a
laptop is---)
2. Agreement not enforceable by law. (agreement for purchase
heroine is---)
So, “all contracts are agreement, but all agreements are not contracts”
it was also held in Abdul Gani Sheikh Vs Jagadish Chandra Mridha and
others . 1
1
2 BLC 121
1

Every promise and every set of promises forming the consideration for
each other is an agreement.
Consideration : Section 2 (d) of the Contract Act, 1872
When, at the desire of the promisor, the promisee or any other person
has done or abstained from doing or does or abstains from doing or
promises to do or to abstain from doing something, such act or
abstinence or promise is called a consideration for the promise.
2
Promise: Section 2 (b) of the Contract Act, 1872
A proposal when accepted becomes a promise.
Proposal : Section 2 (a) of the Contract Act, 1872
When one person signifies to another his willingness to do or to abstain
from doing anything, with a view to obtaining the assent of that other
to such act or abstinence, he is said to make a proposal.
Acceptance : Section 2 (b) of the Contract Act, 1872
When the person to whom the proposal is made signifies his assent
thereto the proposal is said to be acceptance.
Voidable contract : voidable contract has been defined in section 2 (i)
of the Contract Act, 1872 as-
An agreement which is enforceable by law at the option of one or more
of the parties thereto, but not at the option of the other or others is
called voidable contract.