Contents

Definition of Contract: According to Section 2(h) of Contract Act 1872, An agreement enforceable by law is a contact. !here are two essentials of this act, agreement and enforceability. Section 2(e) defines agreement as "e#ery $romise and e#ery set of $romises, forming the consideration for each other." Again Section 2(b) defines $romise in these words% "when the $erson to whom the $ro$osal is made signifies his assent thereto, the $ro$osal is said to be acce$ted. &ro$osal when acce$ted becomes a $romise." Essential elements of valid contract is as follows:

1. Offer and acceptance: !here m'st be a (lawf'l offer) and (lawf'l acce$tance of the offer. 2. Intention to create legal relation:

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!here m'st be an intention among the $arties that the agreement sho'ld be attached by legal conse*'ences and create legal relation. 3. Lawful consideration: !here m'st be a lawf'l consideration. Consideration has been defined as the $rice $aid by one $arty for the $romise of the other. 4. Capacit of parties: According to Section 11 of Contract Act 1872, +n order to be com$etent to contract the $arties m'st be of the age of ma,ority and of so'nd mind and m'st not be dis*'alified from contracting by any law to which they are s'b,ect. !. "ree consent: According to Section 1- of contract act 1872, Consent means that $arties m'st ha#e agreed '$on the same thing in the same sense. +t is an essential element of a #alid contract. #. Lawful o$%ect: .or the formation of a #alid contract it is also necessary that the $arties to an agreement m'st agree for a lawf'l ob,ect.

&. 'riting and registration: According to the +ndian Contract Act a contract may be oral or in writing. /'t in certain s$ecial cases it lays down that the agreement, to be #alid, m'st be in writing or registered. (. Certaint : According to Sec20 of Contract Act 1872, Agreement the meaning of which is not certain or ca$able of being made certain, are #oid. 1hile disc'ssing the essential elements of a #alid contract in the abo#e disc'ssion we obser#ed that as a first ste$ in the ma2ing of a contract there m'st be lawf'l offer by one $arty and a lawf'l acce$tance of the offer by the other $arty.

3isc'ssion whether the case is a #alid contract% 1. Offer and )cceptance: A #alid offer was made by 3oraemon and whoe#er acce$ts the offer m'st swim across the ri#er to show his acce$tance.
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2. Lawful Consideration: !he consideration of a s'm of 24,444 ta2a was $romised by the offeror '$on com$letion of the contract. 3. Capacit of parties: 'nclear. 4. Lawful O$%ect: the contract is not 'nlawf'l, fra'd, immoral or o$$osed to $'blic $olicy. !. *ossi$ilit of performance: Swimming across a ri#er is $ossible so the $ossibility of

$erformance is there. Case Discussion: S$ongebob didn)t gi#e his acce$tance to 3oraemon)s offer when he anno'nced it e5$ressly b't he remained *'it. /'t he ,'m$ed in the ri#er regardless b't it is in order to sa#e the boy from drowning not to com$lete the offer 3oraemon has anno'nced, so it is not clear if S$ongebob acce$ted 3oraemon)s offer so the contract is #oid as no acce$tance is gi#en. Offer: According to sec 2(a) of contract act 1872, 1hen one $erson signifies to another his willingness to do or to abstain from doing anything, with a #iew to obtaining the assent of that other to s'ch to s'ch act or abstinence, he is said to ma2e a $ro$osal.

Legal rules regarding a valid offer are descri$ed $elow: 1. )n offer ma $e e+press or implied: An offer may be made either by words or by cond'ct. An offer which is e5$ress by words s$o2en or written is called an e5$ress offer and the one which is inferred from the cond'ct of a $erson or the circ'mstances of the case is called an im$lied offer. 2. )n offer must contemplate to give rise to legal conse,uences and $e capa$le of creating legal relation: +f the offer does not intend to gi#e rise to legal conse*'ences, it is not a #alid offer in the eye of law. 3. -.e terms of t.e offer must $e certain and not loose or vague: +f the terms of the offer are not definite or certain, it does not amo'nt to a lawf'l offer.

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4. )n invitation to offer is not an offer: An offer m'st be disting'ished from an in#itation to recei#e offer or as it is sometimes e5$ressed in ,'dicial lang'age an in#itation to treat. !. )n offer ma $e specific or general: An offer is said to be s$ecific when it is made to a definite $erson. A general offer on the other hand is which is made to the world at large or $'blic in general. #. )n offer must $e communicated to t.e offree: An offer is effecti#e only when it is comm'nicated to the offeree. 6ntil the offer 2nown to the offeree, there can be no acce$tance and no contract. &. )n offer s.ould not contain a term t.e non compliance of w.ic. would amount to acceptance: An offeror cannot say that if acce$tance is not comm'nicated '$ to a certain date, the offer wo'ld be $res'med to ha#e been acce$ted. (. )n offer can $e made su$%ect to an terms and condition: An offeror may attach any terms and conditions to the offer he ma2es. /. -wo identical cross offer do not ma0e a contract: 1hen two $arties ma2e identical offers to each other, in ignorance of each other)s offer, the offers are cross offers. Is t.e case a valid offer: As it is cleared in the +ndian contract act 1872 which is disc'ssed abo#e a #alid offer ha$$ens when a $erson shows his willingness to do something or his abstain from doing something with the #iew of obtaining the assent of the other to s'ch act. +n the case we can see% 1. 1illingness of 3oraemon to $ay 24,444 !a2a. 2. !he offer was made to the $ersons who were $resent there. -. !he $ayment will be made to anyone who swims across the ri#er. So yes, it is a #alid offer.

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Elements of valid offer in t.e case: 1. )n offer can $e e+press or implied: An offer can be made either by word or by cond'ct. +n the case 3oraemon e5$ressly said to the $eo$le $resent he will $ay anyone who will swim across the ri#er to the other ban2. 2. )n offer must contemplate to give rise to legal consideration: 3oraemon is bo'nd to $ay anyone who 2now abo't the offer and $erformed the tas2 re*'ired and if not he will be s'b,ected to legal consideration. 3. -.e terms of t.e offer must $e certain and not vague: 3oraemon will $ay anyone who can swim across the ri#er7 there is no 'ncertainty in the offer. 4. 1pecific or general: !he case is of a general offer beca'se 3oraemon did not bind the offer to the friens he was with b't to anyone can swim across the ri#er, so any $erson who 2nows abo't the offer can bo'nd himself to the contract. !. )n offer must $e communicated to t.e offeree: 3oraemon clearly comm'nicated his offer to the offeree by e5$ress words.

/y ,'dging the abo#e $oints we can say a #alid offer was $laced by the offeror 3oraemon. Lapses and revocation of offer: 1. )n offer lapses after stipulated or reasona$le time: An offer la$ses if acce$tance is not comm'nicated within the time $rescribed in the offer, or if no time is $rescribed, within a reasonable time. 8Section 9(2) of Contract Act 1872: 2. )n offer lapses $ not $eing accepted in t.e mode prescri$ed or if no mode is prescri$ed2 in some usual and reasona$le manner: /'t according to section 7 of Contract act 1872, if the offree does not acce$t the offer according to the mode $rescribed, the offer does not la$se a'tomatically. +t is for the offeror to insist that his $ro$osal shall be acce$ted only in the $rescribed manner. 3. )n offer lapses $ re%ection: An offer la$ses if it has been re,ected by the offeree. !he re,ection may e5$ress or im$lied.
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4. )n offer lapses $ t.e deat. or insanit of t.e offeror or t.e offeree $efore acceptance: +f the offeror dies or becomes insane before acce$tance, the offer la$ses $ro#ided that the fact of his death or insanity comes to the 2nowledge of the acce$tor before acce$tance. 8Sec9 (;) of Contract Act 1872: !. )n offer lapses $ revocation: An offer is re#o2ed when it is retracted bac2 by the offeror. An offer may be re#o2ed, at any time before acce$tance, by the comm'nication of notice of re#ocation by the offeror to the other $arty. 8Sec 9(1) of Contract Act 1872:.

#. 3evocation $ non fulfillment of a condition precedent to acceptance: An offer stands re#o2ed if the offeree fails to f'lfill a condition $recedent to acce$tance. 8Sec 9(-) of Contract Act 1872: &. )n offer lapses $ su$se,uent illegalit or destruction of su$%ect matter: An offer la$ses by s'bse*'ent illegality after it is made and before it is acce$ted.

*ossi$ilit of revocation $ Doraemon: According to the +ndian contract act 1872 section 9(1) an offer can be re#o2ed any time before acce$tance. +n the case of 3oraemon and S$ongebob the acce$tance of the offer is not acce$ted to 3oraemon when S$ongebob ,'m$ed into the ri#er b't when he swims to the other side. So 3oraemon reser#es the right to re#o2e the offer is made any time before s$ongebob swam to the other side of the ri#er. So yes, 3oraemon can re#o2e the offer and s$ongebob cannot reco#er the money '$on com$letion of the tas2.

)cceptance: According to sec 2(b) contract act 1872, 1hen the $erson to whom the $ro$osal is made signifies his assent there to, the $ro$osal is said to be acce$ted.
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Legal rules regarding a valid )cceptance: 1. )cceptance must $e given onl $ t.e person to w.om t.e offer is made: An offer can be acce$ted only by the $erson or $ersons to whom it is made and with it im$orts an intention to contract . 2. )cceptance must $e a$solute and un,ualified 41ec& 516 of Contract act 1(&27: +n order to be legally to be effecti#e it m'st be an absol'te and 'n*'alified acce$tance of all terms of the offer.

3. )cceptance must $e e+pressed in some usual and reasona$le manner2 unless t.e proposal prescri$es t.e manner in w.ic. it is to $e accepted 4sec& 526 of contract act 1(&27: +f the offeror $rescribes no mode of acce$tance, the acce$tance m'st be comm'nicated according to some 's'al and reasonable mode. <ental acce$tance ineffect'al <ental acce$tance or *'ite assent not e#idenced by by words or cond'ct does not amo'nt to #alid acce$tance 4. )cceptance must $e communicated $ t.e acceptor: .or an acce$tance to be #alid, it m'st not only be made by the offeree b't m'st also be comm'nicated or, by the a'thority of the offeree to the offeror. !6 )cceptance must $e given wit.in a reasona$le time and reasona$le time and $efore t.e offer lapses and ids revo0ed:!o be legally effecti#e acce$tance m'st be gi#en within the s$ecified time limit, if any, and if no time is sti$'lated ,acce$tance m'st be gi#en within a reasonable time beca'se an offer cannot be 2e$t o$en indefinitely. #6 )cceptance must succeed t.e offer: Acce$tance m'st be gi#en after recei#ing the offer. +t sho'ld not $recede the offer.

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&6 3e%ected offers can $e accepted onl 2 if renewed: =ffer once re,ected cannot be acce$ted again 'nless afresh offer is made. Case Discussion: 1hen S$ongebob heard abo't 3oraemon)s =ffer he did not not gi#e his acce$tance by word nor deed, b't he ,'m$ed to sa#e the boy, while doing so he did not say to 3oraemon is he doing it for the offer gi#en by 3oraemon so no S$ongebob didn)t acce$t the offer./eca'se as the r'le of acce$tance the acce$tor b't $erform the deed with the tho'ght of $erforming it for the deed the gi#en by the offeror. /y sa#ing the child S$ongebob 3id the tas2 for a social ca'se not for the offer and therefore is not s'b,ected to the consideration.

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