Under what circumstances a guarantee becomes invalid?
—Any guarantee which has been obtained by means of misrepresentation made by the creditor, or with his knowledge and assent, concerning a material part of the transaction, is invalid. “
What is revocation of proposal?
A proposal may be revoked at any time before the communication of its acceptance is complete as against the proposer, but not afterwards. An acceptance may be revoked at any time before the communication of the acceptance is complete as against the acceptor, but not afterwards.
Who is not eligible for contract?
Minors (those under the age of 18, in most states) lack the capacity to make a contract. So a minor who signs a contract can either honor the deal or void the contract. There are a few exceptions, however. For example, in most states, a minor cannot void a contract for necessities like food, clothing, and lodging.
When can an unsound mind enter into a contract?
It is important to note that a person who is usually of an unsound mind, but occasionally of a sound mind, can enter a contract when he is of sound mind. No person can enter a contract when he is of unsound mind, even if he is so temporarily. A contract made by a person of an unsound mind is void.
What is Section 144 of Indian Contract Act?
144. Guarantee on contract that creditor shall not act on it until co-surety joins. —Where a person gives a guarantee upon a contract that the creditor shall not act upon it until another person has joined in it as co-surety, the guarantee is not valid if that other person does not join.
What is impossible agreement?
—A contract to do an act which, after the contract is made, becomes impossible, or, by reason of some event which the promisor could not prevent, unlawful, becomes void when the act becomes impossible or unlawful. 1. Compensation for loss through non-performance of act known to be impossible or unlawful.
What is acceptance and revocation?
In legal terminology Revocation of Acceptance refers to the following. Proposer makes an offer. Acceptor accepts the same and communicates the same to the proposer. Acceptor revokes/cancels this acceptance before the communication reaches the proposer.
Who can revoke the contract?
First method is revocation of a proposal by communication of notice. A proposal/offer may be revoked by the proposer/offeror by giving notice to the offeree before it is accepted. Notice of revocation will take effect when it is in the knowledge of the offeree before the communication of acceptance.
Who can enter into contract?
No matter who the parties are, contracts almost always contain the following essential elements: Parties who are competent to enter into a contract. For example, a mentally disabled person could not enter into a contract. Minors can enter into contracts but can void them in most cases before they reach majority age.
What is Section 12 of Indian Contract Act?
A person is said to be of sound mind for the purpose of making a contract, if, at the time when he makes it, he is capable of understanding it and of forming a rational judgment as to its effect upon his interests.
What is Section 159 of Indian Contract Act 1872?
Section 159 in The Indian Contract Act, 1872 159. Restoration of goods lent gratuitously.—The lender of a thing for use may at any time require its return, if the loan was gratuitous, even though he lent it for a specified time or purpose.
When was the First Contract Act passed in India?
THE INDIAN CONTRACT ACT, 1872 ARRANGEMENT OF SECTIONS 1 THE INDIAN CONTRACT ACT, 1872 ____________ ARRANGEMENT OF SECTIONS ____________ SECTIONS PREAMBLE PRELIMINARY 1. Short title.
What is the preamble of the Indian Contract Act 1872?
THE INDIAN CONTRACT ACT, 1872 ACTNO. 9 OF18721 [25th April, 1872.] Preamble—WHEREASit is expedient to define and amend certain parts of the law relating to contracts; It —is hereby enacted as follows: PRELIMINARY
Are 1872 agreements in restraint of trade void under Indian law?
Under section 27 of the Indian Contract Act, 1872 agreements in restraint of trade are void.