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By C. Ramagopala

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There is no difference between general offer and special offer. Awareness of offer is not a primary requirement for a valid acceptance. For formation of contract, consideration has to be necessarily in money. Dowry provided, voluntarily, by the father of a divorced daughter is not unlawful. Inadequacy of consideration is not a valid ground, but if the consent is obtained by coercion or other vitiating element, the later would be a valid ground to the court to invalidate the agreement. An unenforceable contract can be enforced, if the technical defect is removed.

A person who is usually of unsound mind but casually of sound mind can always enter into a valid contract. An agreement entered into by a minor cannot be enforced by law. No consideration, no contract. If the unsound mind occurs after the formation of the contracts, the contracts that have been entered into, before the disqualification- unsound mind, are not binding, in any manner. 36 Business Legislation 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. Contract can be inferred from the conduct of the parties too.

Decide. Formation and Incorporation of Companies 21 Answer: Vinod cannot succeed because the Articles of Association does not constitute a contract between the company and an outsider. Moreover, the right has been conferred on Vinod other than as a member. The leading case on this matter is Eley Vs Positive Life Assurance Co. (1876) 1 Ex. 88 and Mothey Krishna Rao Vs Grandhi Anjaneyulu (AIR 1954) Madras 113). Descriptive Questions 1. 2. 15. (A) Define ‘Company’. Write the essential features of a company.

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