Indian Contract Act 1872

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Indian Contract Act 1872
Indian Contract Act 1872 is the main source of law regulating contracts in Indian law, as subsequently amended.
It determines the circumstances in which promise made by the parties to a contract shall be legally binding on them. All of us enter into a number of contracts everyday knowingly or unknowingly. Each contract creates some right and duties upon the contracting parties. Indian contract deals with the enforcement of these rights and duties upon the parties.
The Indian Contract Act 1872 sections 1-75 came into force on 1 September 1872. It applies to the whole of India except the state of Jammu and Kashmir. It is not a complete and exhaustive law on all types of contracts.
Contents
[hide]
• 1 Definition
• 2 Essential Elements of a Valid Contract
• 3 Types of Contracts
• 4 Offer
• 5 Acceptance
• 6 Lawful Consideration
• 7 Competent To Contract
• 8 Free Consent
• 9 Revocation of Offer
• 10 Agency
• 11 Notes
• 12 References
• 13 External links

[edit] Definition
Section 2(h) of the Act defines the term contract as "an agreement enforceable by law".
Section 2(e) defines agreement as "every promise and every set of promises, forming the consideration for each other."
Again Section 2(b) defines promise in these words: "when the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. Proposal when accepted, becomes a promise."
[edit] Essential Elements of a Valid Contract
According to Section 10, "All agreements are contracts, if they are made by the free consent of the parties, competent to contract, for a lawful consideration with a lawful object, and not hereby expressly to be void."
Essential Elements of a Valid Contract are:-
1.Proper offer and proper acceptance.
2.Lawful Consideration: An agreement to form a valid contract should be supported by consideration. Consideration means “something in return” (quid pro quo). It can be cash, kind, an act or abstinence.

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