[PDF] CONTRACT MANAGEMENT Overview (NOTES)

Posted by : Saurabh Gupta Sunday, March 13, 2016

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CONTRACT MANAGEMENT

This article must be useful for civil engineering students , and law students for understanding Contract and factors associated with that , any suggestion and correction is appreciated. Notes of contract management in PDF format is available after this post.

First introduced in 1992
definition of contract management

“A contract is a promise or set of promise for the breach of which the law gives a remedy or performance of which the law in some way recognize as duty.”

· Legally enforceable promise.
· Binding

I. If the promisors fails has full capacity

II. If there is no illegality or fraud.

III. If the duty has not been discouraged.

IV. If no similar facts which defect prime facial duty.

A promise is a manifestation of intention to act or refrain from acting in a specified way, so made as to justify a promise in understanding that commitment has been made.

I. The person manifestation the intention is the promisor
II. The person to whom manifestation is addressed in the promises.

INDIAN CONTRACT ACT - 1 SEPT 1872
Applicable on Whole India except J&K

How an offer become contract ?

Mainly deals with 3 things below

I. Contract Formation / creation
II. Performance of a contract
III. Remedies in case of breach

Three special kind of contract

I. Contract of bailment & pledge
II. Contract of indemnity and guaranty
III. Contract of agency

Definition act ICA Section (2) (H)

“An Agreement enforceable by law is a contract”.

“An offer when accepted is an agreement /promise.”

1.1 Agreement

“All contracts are agreements but all agreements are not contract”

1. Agreements with minors

2. Agreement with illegal objects

3. Agreements to impossible Act

1.1 ESSENTIAL ELEMENTS OF AN VALID CONTRACT SECTION 10

I Offer and Acceptance – definite and clear Acceptance à Absolute and Unconditional à No Variation

II.Consensus and Idem meeting of mind, both the parties taking the same thing at the same time.

III. Parties have an intention to create legal obligation à enforceable by law , in a personal agreement there is a presumption that parties don’t intend to create legal obligations In case of commercial agreement it is presumed that parties intend to create legal obligation.

IV. Lawful Consideration - No Consideration àNo contract

V.Competency of the parties à Major, person of sound mind , person not disqualified to enter in a contract.

VI Free Consent à Parties enters a contract with free will Ex àWhen free consent is missing the contract voidable

1 Coercion- when one party is committing a crime or threating to committing in order to force party to enter into contract.

2Under Influence – when one party in position dominates to misuse of others.

3Fraud- Giving false statement knowing them to be false,

4Misrepresentation- Innocent false statements,

VII.Lawful Object à not immoral, oppose to public policy.

VIII. Registration & Writing à must be written

IX. Certainty à clear , not confusing

X. Possibility of performance.