Indian Contract Act
THE INDIAN CONTTRACT ACT, 1872
The Law of contract is that branch of Law, which determines the circumstances in which promises made by parties to contract shall be legally binding on them.
Every one of us enters into a number of contracts from morning until night.
Examples:
1) Buying Milk early in the morning. 2) Boarding BEST Bus 3) Borrowing Money from Friend 4) To see movie. 5) Purchasing goods from shops.
This how we enter into contracts though we are not conscious of it .Therefore, it is most usual method of defining the give and take deal in a business transaction The law relating to the contract is contained in the INDIAN CONTRACT ACT, 1972. The principle of this law helps in settlement of disputes between the parties to the contract.
The Indian Contract Act, 1872 deals only with promises which creates legal obligation.
DEFINITION OF CONTRACT
The word contract is derived from the “LATIN” term “CONTRACTUM” Meaning “DRAWN TOGETHER”
This therefore denotes drawing together of two or more minds to form a common intention-giving rise to an agreement.
Indian Definition
A Contract is “an agreement” Enforceable by law {u/s 2(h)}
By analysis of this definition we find that a contract consists of two elements
1) An Agreement 2) Enforceability by law
Consent and free consent
Consent:
Generally speaking, the word consent means agreeing that something should happen. An agreement is valid only when it is the result of the free consent of all the parties to it.
Consent means act of assenting to an offer.
{S-13} defines consent as two or more person are said to consent when they agree upon the same thing in the same sense.
Explanation:
Consent therefore, requires unity of the mind. When parties agreed upon the same thing in the same sense, they have consensus ad idem. Consensus ad idem means agreement to this
The Law of contract is that branch of Law, which determines the circumstances in which promises made by parties to contract shall be legally binding on them.
Every one of us enters into a number of contracts from morning until night.
Examples:
1) Buying Milk early in the morning. 2) Boarding BEST Bus 3) Borrowing Money from Friend 4) To see movie. 5) Purchasing goods from shops.
This how we enter into contracts though we are not conscious of it .Therefore, it is most usual method of defining the give and take deal in a business transaction The law relating to the contract is contained in the INDIAN CONTRACT ACT, 1972. The principle of this law helps in settlement of disputes between the parties to the contract.
The Indian Contract Act, 1872 deals only with promises which creates legal obligation.
DEFINITION OF CONTRACT
The word contract is derived from the “LATIN” term “CONTRACTUM” Meaning “DRAWN TOGETHER”
This therefore denotes drawing together of two or more minds to form a common intention-giving rise to an agreement.
Indian Definition
A Contract is “an agreement” Enforceable by law {u/s 2(h)}
By analysis of this definition we find that a contract consists of two elements
1) An Agreement 2) Enforceability by law
Consent and free consent
Consent:
Generally speaking, the word consent means agreeing that something should happen. An agreement is valid only when it is the result of the free consent of all the parties to it.
Consent means act of assenting to an offer.
{S-13} defines consent as two or more person are said to consent when they agree upon the same thing in the same sense.
Explanation:
Consent therefore, requires unity of the mind. When parties agreed upon the same thing in the same sense, they have consensus ad idem. Consensus ad idem means agreement to this