MUSINGS

Another essential element of a contract that is legality of object and consideration The object of consideration of an agreement must be lawful, in order to make the agreement a valid contract, for, Section 10 lays down that all agreements” are contracts if made for lawful consideration and with a lawful object. Section 23 declares what kinds of considerations and objects are not lawful. If the object or consideration is unlawful for one or the other of the reasons mentioned in Section 23, the agreement is ‘illegal’ and therefore void (Sec. 23). The use of the word ‘illegal’ is somewhat a misnomer here. It usually connotes a punishable offence, but the parties to a so called “illegal agreement,” unless it is expressly punishable by law or amounts to a criminal conspiracy are not liable to punishment. They have committed no offence. They have merely concluded a transaction that will be spurned by the courts.’ The words ‘object’ and ‘consideration’ used in Section 23 are not syno...

it means an act of assenting to an offer. According to section 13, "Two or more persons are said to consent when they agree upon the same thing in the in same sense." Thus, consent involves identity of minds in respect of the subject matter of the contract. In English Law, this is called 'consensus-ad-idem'.  Effect of Absence of consent:  When there is no consent at all, the agreement is void ab-initio, i.e. it is not enforceable at the option of either party. Example: X has one Maruti car and one Fiat car. He wants to sell Fiat car. Y does not know that X has two cars. Y offers to buy X's  car for Rs 50,000. X accepts the offer thinking it to be an offer for his Fiat car. Here, there is no identity of mind in respect of the subject matter. Hence there is no consent at all and the agreement is void ab-initio.  Meaning of Free consent: It is one of the essential elements of a valid contract as it is evidenced by section 10 which provides that all agreements are c...

While the essential difference between the two is in the parties, there are other key factors that differentiate the two.

1. On the basis of formation a. Expressed, b. Implied and c. Quasi 2. On the basis of performance a. Executed. b. Executory c. Partly both d. Unilateral e. Bilateral 3. On the basis of validity a. Valid b. Void c. Voidable d. Illegal e. Unenforceable EXPRESSED CONTRACTS There are two types of contracts: an expressed contract, which states the promises in clear language, and an implied contract, which is where behaviors or actions lead parties to believe an agreement exists. Expressed Contracts Minal wants to purchase his first home. He found the perfect place in Patna. The contract for purchase was signed, and he closed on the home within a month. The contract Miguel entered into is an  expressed contract  because the elements are specifically stated, including offer, acceptance and consideration. To break it down, a contract contains six elements: An offer Acceptance of the offer Consideration Mutual assent Capacity Legally accepted terms This is...