DEEKSHITH KUMAR PUTTUR

CONTINGENT CONTRACTS A contract may be (a) an absolute contract, or (b) a contingent contract. An absolute contract' is one in which the promisor binds himself to performance in any event without any conditions. "Contingent" means that which is dependent on something else. A 'contingent contract' is a contract to do or not to do something, if some event, collateral to such contract, does or does not happen (Sec. 31).  Where, for example, goods are sent on approval, the contract is contingent contract depending on the act of the buyer to accept or reject the goods. A contingent contract is a contract, the performance of which is dependent upon, the happening or non-happening of an Certain event, collateral to such contract. That is why, a contingent contract is also known as a conditional contract. Any ordinary contract can be transformed into a contingent contract, if the performance is made dependent upon the happening on non-happening of an uncertain event, coll...

WAGERING AGREEMENT OR WAGER (Sec. 30) A wager is an agreement between two parties by which one promises to pay money or money's worth on the happening of some uncertain event in consideration of the other party's promise to pay if the event does not happen. Wagering agreement is also called as betting agreement. It is a game of chance in which winning or losing is dependent on specified uncertain event. This agreement is void and not enforceable at law. Essentials of a Wagering Agreement 1. Promise to pay money or money's worth. The wagering agreement must contain a promise to pay money or money's worth. 2. Uncertain event. The promise must be conditional on an event happening or not happening. A wager generally contemplates a future event, but it may also relate to a past event provided the parties are not aware of its result or the time of its happening. 3. Each party must stand to win or lose. Upon the determination of the contemplated event, each party should stand ...

Lawful Object A contract must not only be based upon mutual assent of competent parties but must also have a lawful object. If the object of an agreement is the performance of an unlawful act, the agreement is unenforceable. Sec. 23 declares that the object' or the 'consideration' of an agreement is not lawful in certain cases. The words 'object' end 'consideration' in Sec. 23 are not used synonymously. They are distinct in meaning. The word object' means purpose or design. In some cases, consideration for an agreement may be lawful but the purpose for which the agreement is entered into may be unlawful. In such cases the agreement is void. As such both the object and the consideration of an agreement must be lawful, otherwise the agreement is void. WHEN CONSIDERATION OR OBJECT IS UNLAWFUL (Sec. 23) The consideration or object of an agreement is unlawful 1. If it is forbidden by law. If the object or the consideration of an agreement is the doing of an a...

  BASIS OF CHARGE According to Sec. 4 of the Income Tax Act, Income-tax is charged on the income of an assessee earned in the previous year according to the rates fixed by the Finance Act. The tax liability is determined on the basis of the residence in India in the previous year. The residential status of an assessee need not be the same each year. The rules determining the Residential Status are not the same for all the assesses. An assessee may earn his income in India or outside India or at both places. Which income is assessable in India depends on the residential status of an asseseee. The scope of the total income of an assessee along with his residential status is determined with reference to his residence in India in the previous year.   Residence and citizenship are two different aspects. The incidence of tax has nothing to do with citizenship. An Indian may be non-resident and a foreigner may be resident for income tax purposes. The residence of a person may cha...

Permanent Account Number is a ten-digit number allotted by the Income Tax Department to an assesse who has applied for PAN in the Form No. 49A of the Act. The PAN is meant to identify the returns, tax payment challans and the correspondence received from the assesses and link these to their assessment records to facilitate quick disposal of their refund claims or assessments. The Department has authorized UTI Investor Services Ltd (UTICL) to manage IT PAN Services Centres in all cities of towns. Every person having the Total Income above exemptible limit and every business or profession whose total sales turnover or gross receipts exceed Rs. 5 Lakh should own or obtain PAN. It is mandatory for every assesse to quote the PAN in his IT Returns. The non-furnishing or furnishing incorrect PAN attracts a penalty of Rs. 10,000. Cases under which PAN is compulsory: PAN is compulsory for all assessee if (i) His income exceeds the exemption limit. (ii) He is liable to pay tax on behalf of...

Law of Contracts The law of contract is that branch of law which determines the circumstances in which promises made by the parties to a contract shall be legally binding in them. The law relating to contracts is contained in the Indian Contract Act, 1872 . The Act deals with (1) the general principles of the law of contracts and (2) some special contracts.   Definition: A contract is an agreement made between two or more parties which the law will enforce . Sec. 2(h) defines contract as an agreement enforceable by law . This definition is based on Pollock’s definition which is as follows: “Every agreement and promise enforceable at law is a contract.” Sir William Anson defines a contract as “a legally binding agreement between two or more persons by which rights are acquired by one or more to acts or forbearances (abstaining from doing something) on the part of others.” According to Salmond , a contract is “an agreement creating and defining obligations between the parties.” ...