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Indian Contract Act 1872

This document provides an overview of contract law in India. It defines a contract as a promise or set of promises that are legally binding and enforceable. The Indian Contract Act of 1872 governs contract law and defines the requirements for an agreement to be considered a valid and enforceable contract. These requirements include offer and acceptance, lawful consideration, capacity to contract, and lawful object. The Act also establishes that a contract creates corresponding rights and obligations between the parties.

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106 views

Indian Contract Act 1872

This document provides an overview of contract law in India. It defines a contract as a promise or set of promises that are legally binding and enforceable. The Indian Contract Act of 1872 governs contract law and defines the requirements for an agreement to be considered a valid and enforceable contract. These requirements include offer and acceptance, lawful consideration, capacity to contract, and lawful object. The Act also establishes that a contract creates corresponding rights and obligations between the parties.

Uploaded by

Hijas PU
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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CONTRACT

It is a branch of law in which promises made by parties are


made to be legal and binding on each other. It ensures realisation of reasonable expectation of the parties who enter in to a contract. A contract is a promise or set of promises which the law will enforce. It is defined as an agreement enforceable by law. A contract therefore requires "agreement plus enforceability. INDIAN CONTRACT ACT 1872 . The law of Contract constitutes the most important branch of

mercantile law or commercial

law. It affects every body. It is the

foundation of civilised world. The preamble of the Act says that it is an Act to define and amend certain parts of the law relating to contracts.

It extends to the whole of India except Jammu & Kashmir.


A contract creates and defines obligations between the parties. The Act is divisible into two parts. The first part (section 1-75)

deals with general principles of the law of contract and applies to all
contracts irrespective of their nature. The second part (up to sec 238) deals with certain special kinds of contract. Eg. Indemnity and

guarantee, bailment, pledge and agency.


An agreement occurs when two minds meet upon a common purpose, they mean the same thing, in the same sense at the same time. The meeting of the mind is called consensus ad idem ie. consent to the matter.

An obligation is the legal duty to do or abstain from doing what one has promised to do or abstain from doing, a contractual obligation arises from a bargain between the parties to the agreement. Who are

called the promiser and the promisee.


When a person to whom the proposal is made signifies his assent there to, the proposal is said to be accepted. A proposal when

accepted

becomes a promise (Sec-2(b)). The person making the

proposal is called the promiser (offerer). The person accepting the proposal is called the promisee (offeree). Every promise and every set of promises forming the consideration for each other is an agreement.

All agreements are contracts if they are made by free consent of parties, competent to contract for a lawful consideration and with a lawful object and are not hereby expressly declared to be void. The requirements are specifies in sec -10. Intention to create legal

obligation has been established as a basic general principle for the

enforceability of an agreement.
When parties enter in to a binding contract, they create rights and obligations correlative. Eg. A agrees with B to sell his car for

Rs.10000. The following rights and obligations are created.

1. A is under an obligation to deliver the car to B


B has a corresponding right to receive the car.

2. B is under the obligation to pay Rs.10000 to A


A has a correlative right to receive Rs.10000.

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