In other words, bargain for exchange theory differs from profit of detriment theory in that bargain for exchange theory appears to be the motive for the parties` subjective commitments and mutual agreement, while in detriment-benefit theory, the emphasis seems to be on objective legal disadvantage or benefit to the parties. 3. Legitimate consideration and object: the consideration or the object of an agreement should be legal. It should not be prohibited by law; should not be such that, if permitted, it would null and neas the legal provisions; should be fraudulent; if no violation of the person or the assets of another person is or implies it, it should not be a being considered by the court to be immoral or contrary to public order. If the consideration or the object of an agreement is illegal, the agreement would be cancelled. It should be noted that the misled agreement is null and void, while the agreement concluded by coercion, unlawful influence, fraud and misrepresentation is questionable at the choice of the party who was led to conclude the contract. Some agreements may be enforceable by law, others may not. It is therefore clear from the following examples that not all agreements are contractual. Only these agreements are contracts that meet the conditions set out in section 10 of the Indian Contracts Act. Joint venture – an agreement between two or more independent companies in a company where they share the costs, management, profits or profits of the company.
A contract is an agreement that requires you or your company to act. Therefore, it is important that you ask your lawyer or advisor to explain any language or terminology you do not understand. ii) but an agreement to conclude someone is not a contract, because there is no legal obligation for either party. The express contract is a contract in which the agreement of the parties has been expressed in terms, either orally or in writing. An exchange of promises explaining the conditions to which the parties attach themselves, either orally, in writing, or a combination of the two at the time of the conditions. Whether orally or in writing, the treaty must express a reciprocal intention to be expressed in a comprehensible manner and contain a final offer, unconditional acceptance and consideration. Agent – someone who has been appointed to act on behalf of another person. .