Indian Contract Act, 1872

Indian Contract Act, 1872

Most important commercial law
Object: To introduce definiteness in commercial
and other transactions
Lays down certain general rules regarding
contracts
Not exhaustive
Does not affect usage or customs of trade
English principles of equity applicable only when
not contradicting the provisions of the Act.
Meaning of Contract
An agreement enforceable by law is contract.
[Sec. 2(h)]
Agreement + Enforceability = Contract
Every promise and every set of promises,
forming consideration for each other, is an
agreement [Sec. 2(e)]
A contract is an agreement enforceable at law
made between two or more parties, by which
rights are acquired by one or more to acts or
forbearances on the part of the other or others.
(Sir William
Anson)
Enforceability of 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 expressly declared by law to
be void. [Sec. 10]
Essentials of Contract
Offer and acceptance
Intention to create legal relationship
Lawful consideration
Capacity of parties
Free consent
Legality of the object
Certainty
Possibility of performance
Void agreements
Writing and registration