5. Pharmaceutical Society of Great
Britain v. Boots Cash Chemists Ltd
• When the goods are displayed either in a show-window or
inside the shop and such goods bear price-tags
• Whether that amounts to an offer to sell goods at prices
mentioned on the price tags.
• It was held that display of goods & price tags is just invitation
to treat and if a person wants to buy, he makes an offer to buy
the goods.
• Shopkeeper has the right to accept or reject the same.
• The contract would arise only when the offer is accepted.
6. Lalman Shukla v. Gauri
Dutt
• An offer can be accepted only after the same has come to
the knowledge of the offeree.
• Offer has to be communicated to the offeree in order
that the offeree can accept it.
• Section 4 of the Indian Contract Act states that the
communication of a proposal is complete when it comes
to the knowledge of the person to whom it is made.
7. • Lalman’s nephew absconded from home.
• Servant was sent to search for the missing boy.
• After he had left in search of the boy, the Lalman issued
handbills announcing a reward of Rs. 501 to anyone who
might find out the boy.
• Servant who was unaware of this reward, was successful
in searching the boy.
• When he came to know of the reward,, he brought an
action against Lalman to claim this reward.
• As servant was ignorant of the offer of reward, his act of
bringing the lost boy did not amount to the acceptance of
the offer and therefore he was not entitled to claim the
reward.
9. Durga Prasad v. Baldeo
It was held that it is essential that the consideration must
have been given at the desire of the promisor, rather than
merely voluntarily or at the instance of some third party.
10. Intent of legal obligations
Both parties shall have intent
of entering in a legal
obligation.
11. Balfour v. Balfour
• Husband who was employed on a government job in Ceylon,
went to England with his wife on leave.
• For health reasons the wife was unable to accompany the
husband Ceylon.
• The husband promised to pay £300/ month as maintenance
to wife for the time she lived apart.
• The husband however failed to pay the amount and was
eventually sued by his wife.
• In the case it was held that the husband was not liable to pay
as there was no intention to create a legal relationship
between the parties.
14. Mohoribibee v Dharmodas
Ghose
• Any agreement or deed in which minor is party to it or is
included in such contact by any way, such deed or
agreement shall be declared null and void because such
agreement is no agreement in the eyes of law.
• But parents and guardians will be liable to repay back the
amount when minor or an infant acted with the consent of
the his/her parents or his/ her custodians.
15. Legality
(i) If it is forbidden by law;
(ii) If it is against the provisions of any
other law;
(iii) If it is fraudulent;
(iv) If it damages somebody’s person or
property; or
(v) If it is in the opinion of court,
immoral or against the public policy.
17. Void agreement
• An agreement with no legal value.
• Legally, a void agreement means the contract or
agreement is no longer enforceable
18. Void agreement
• Cannot be executed, such as a street vendor selling the
Taj Mahal to a tourist
• Were made without consideration
• Require breaking the law
• Go against current public policy
• Include a party that is a minor, intoxicated, or legally
insane at the time of signing
19. Void agreement
• The contract becomes impossible to
fulfill due to external circumstances
• Laws change since the initial
agreement, and the agreement now
requires breaking the law
• Fulfilling the contract will result in
something unlawful
• One party failed to disclose key
information or provided inaccurate
information
An offer is the beginning of a contract. One party must propose an arrangement to the other, including definite terms. For example, if the proposal is an offer to purchase shirts, it must include quantity, price and a delivery date. When the offer is communicated to the other party, he has the right to accept, reject or amend the offer. If he rejects it, the offer dies. If he amends the offer, the original offer dies and his amendments become a new counteroffer that the other party can accept or reject.
Consideration is something of value that the parties are contracting to exchange. Generally, one party exchanges money for property or services, but the parties can both exchange property or services, as long as a court would find that each party's consideration has sufficient value.
Generally, the law assumes that a competent party freely consents to a contract. However, if consent was obtained on the basis of frayed, due to duress or because of the exercise of undue influence, a party's consent is considered involuntary and the contract is void.
Competence, also called legal capacity, is a party's ability to enter into a contract. The most common reason for incompetence is age. A party must be at least 18 years old to enter into a contract. If a minor signs a contract, she has the right to cancel it. Another reason for incapacity is mental illness. A person incapacitated by a disease or disability, who does not understand the terms of a contract he entered, has the right to rescind his acceptance of an offer, voiding the contract. Lastly, a person under the influence of drugs or alcohol may be considered incompetent if the other party knew or should have known that the person's impairment affected his ability to understand and freely consent to the contract.
A contract is only enforceable if the activity in the contract is legal. For example, a person cannot contract with someone to commit assault, murder or another criminal act. Additionally, contracts to split lottery winnings in states where gambling is illegal have been delayed unenforceable.
Not all contracts need to be in writing, but under the Statute of Frauds, certain contracts must be in writing in order to be enforceable. A written contract is required for all transactions involving real estate (i.e., lease or sale of a home), any promises to marry, any agreements to pay a third party's debt and any transaction in which performance cannot be completed within one year of the contract signing.