Submitted by: Nidhi Chauhan Rishi Shrivastava Kumari Kavita Jha Mehzabeen Jaipuriya Pragati Singh

Indian Contract Act, 1872 : Sections - 1 To 10 (Essentials of Valid Contract)

Free Consent - Sections 13 To 22

Termination Of Contract Remedies For Breach Of Contract

Contract Of Agency:
Duties And Responsibilities Of Principal & Agent

Meaning Of Contract

An agreement enforceable by law [Sec 2(h)] An agreement creating & defining obligation between the parties

Essential Requirements of A Contract

Two Parties (Must Be Competent) An Agreement Legal Relationship Free Consent Lawful Consideration Legal Or Lawful Object Agreement Not Expressly Declared Void By Law Compliance With Legal Formalities Certainty Of Performance Possibility Of Performance

Free Consent

Sec(13) Two or more persons are said to consent when they agree upon the same thing in the same sense

Sec(14) defines Free Consent as: Coercion (Sec 15) Undue Influence (Sec 16) Fraud (Sec 17) Misrepresentation (Sec 18) Mistake (Sec 20, 21 & 22)

Discharge Of Contract

By Performance By Legal Tender By Attempted Performance By Breach

Remedies for Breach of A Contract

Recession Of The Contract Suit For The Damages Quantum Merit Suit for Specific Performance Suit For Injunction

Contract Of Agency
Agent (Sec 182) : a person employed to do any act for another, or to represent another in dealings with third persons. Principal: a person who appoints an agent so that the agent can act from his behalf or can represent him. Agency : The legal relationship between a principal and his agent. E.g.

Duties And Responsibilities Of An Agent To His Principal

To conduct principals business according to his instructions or directions Duty on the termination of agency by his principals death or insanity To conduct or carry on the work with reasonable care, skill & diligence To render accounts properly to his principal Not to delegate his authority

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To communicate with principal in cases of difficulty Not to deal on his own account in the business of agency Not to earn or make secret profit from agency business Not to use the information obtained in the course of the agency business against his principal To pay sum received for the principal To set up an advance adverse title

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Duty in naming an agent for his principal Liability in respect of damages and misconduct Personal liability where fixed by trade custom or usage When an agent agrees expressly to be liable Liability for his wrongful acts Liability for the acts of sub-agents

Duties And Responsibilities Of Principal To His Agent

Duty to pay remuneration and dues to his agent Duty to indemnify his agent against the consequences of all legal or lawful acts Duty towards his agent to indemnify him against the consequences of all acts done in good faith Duty to compensate his agent for injury caused

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Liability in respect of contracts entered by his agent with third parties Liability when the notice is properly given to his agent Liability when he induces third parties or persons to believe that his agents unauthorized acts were authorized Liability on account of agents misrepresentation or fraud