Indian Contract Act - IV

Consideration need not be adequate, but it must be real. It need not be approximately of equal value with the promise for which it is exchanged, but it must be something which the law would regard as having some value.
Thus, if A agrees to voluntarily sell his house worth Rs. 20,00,00 for Rs. 2,00,000, it is a valid contract.

Cross offer means identical offers to each other without knowledge the offer of other party.
Counter offer is the offer to other's offer in negotiation.

The reasonable time has passed. So, the offer is valid at the option of investor only.

Though the letter has not reached the offerer, yet the acceptance is valid.

When the condition in an offer is not satisfied, it is bound to revoke.

The agreement with the minor during his period of minority is void.

An agreement entered into by minor is void ab initio. MInor is not bound to fulfill his obligation because agreement is not enforceable by law. In case of necessaries supplied to minor, neither minor nor his guardian is liable but Minor's personal property is liable . If personal property is not there, no recovery is possible. Necessaries cover food, shelter, education, medical treatment, marriage of female and others. In given que, if minor does not pay fees, his personal assets shall be liable, not the minor.

He is bound to pay only in case if construction has started

The contract is valid or voidable at the option of aggrieved party.

It is a case of fraud.

The agreement is void as it can’t be performed and both the parties are unaware about it.

Consideration need not be adequate, but it must be real. It need not be approximately of equal value with the promise for which it is exchanged, but it must be something which the law would regard as having some value.
Thus, if A agrees to voluntarily sell his house worth Rs. 20,00,00 for Rs. 2,00,000, it is a valid contract.

A stranger can sue if a trust is created in his favour.

Though there is an exception of no consideration, but in such cases there should be natural love and affection which is not present in the case.

If an agreement results in defeating the purpose of any other law, it is void.

If the object of contract is unlawful, it is void.

An agreement can become void on the basis of subsequent impossibility of events.

If contract is of personal nature, it should be performed by the promisor only.

If a contract is not of personal nature and does not require personal skills, it must be performed by his representatives.

Alteration means changing one or more terms.
Novation means substitution of new contract in place of old one. Recission means cancellation of contract.

If the contract becomes void due to impossibility known to one party, that party is bound to make good the loss caused to other party.
Had it been not known to A at the time of making the contract, the agreement would have been void.

Contingent events always arise on happening or non-happening of an event.

As the insolvent persons cannot continue the contract, the contract is discharged by the law.

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