Law of Contracts - Class 2 (Acceptance, Consideration & Consent)

Introduction

This tutorial covers key concepts from the video "Law of Contracts - Class 2" by Kerala LLB Entrance, focusing on acceptance, consideration, and consent in contract law. Understanding these concepts is essential for anyone studying law or preparing for legal exams, especially in the context of the Kerala LLB entrance.

Step 1: Understanding Acceptance

Acceptance is a critical element in forming a valid contract. Here’s what you need to know:

• Definition: Acceptance occurs when one party agrees to the terms offered by another party.
• Conditions for Valid Acceptance:
  • Must be communicated clearly to the offeror.
  • Must be unconditional and mirror the terms of the offer (the "mirror image rule").
  • Can be expressed verbally, in writing, or through conduct.
• Practical Advice:
  • Always confirm acceptance in writing when possible to avoid misunderstandings.
  • Be aware that silence generally does not constitute acceptance unless agreed upon.

Step 2: Learning About Consideration

Consideration is what each party brings to the contract, which makes the agreement binding.

• Definition: Consideration is the value exchanged between the parties, which can be money, services, or goods.
• Key Points:
  • Must be something of value, though it does not have to be equal in value.
  • Can be past (previous act) or future (promise to perform).
  • Consideration must be lawful and not against public policy.
• Common Pitfalls:
  • Avoid vague or indefinite terms in consideration, as this can lead to disputes.
  • Ensure that consideration is not illegal or impossible to perform.

Step 3: Exploring Consent

Consent refers to the agreement of both parties to enter into a contract willingly.

• Importance of Genuine Consent:
  • Contracts entered into under duress, undue influence, misrepresentation, or fraud can be voided.
• Ways Consent Can Be Lacking:
  • Mistake: If both parties are mistaken about a fundamental fact, the contract may be voidable.
  • Duress: If consent is obtained through threats, the contract is not valid.
  • Undue Influence: This occurs when one party takes advantage of their position over another, leading to an imbalanced agreement.
• Practical Advice:
  • Always ensure that all parties fully understand the terms and conditions before agreeing.
  • Maintain transparency in negotiations to foster genuine consent.

Conclusion

In summary, a valid contract requires clear acceptance, lawful consideration, and genuine consent from all parties involved. Understanding these elements is crucial for anyone interested in contract law. As a next step, consider reviewing real-world contract examples to see these principles in action, and practice drafting simple contracts to enhance your understanding further.