3. THE INDIAN CONTRACT
ACT 1872
History
The Indian Contract Act came into force on 1 September 1872.
The Third Law commission of British India formed in 1861 under the stewardship
of chairman Sir John Romilly had presented the report on contract law for India
as Draft Contract Law (1866). The Draft Law was enacted as The Act 9 of 1872 on
25 April 1872 and the Indian Contract Act, 1872 came into force with effect from
1 September 1872.
4. Contract
Definition
A contract is an agreement which is made between two or more than two Parties in which the
Law will enforce. According to Section 2(h) of the Indian Contract Act, 1872 a contract is an
agreement which is Enforceable by law.
A contract essentially consist of two elements (1) Agreement (2)enforceability by law.
5. Agreement
According to sec.2(e),
Every promise and set of promises
forming consideration for each other.
Promise
According to sec.2(b),
When a person made a proposal to another to
whom proposal is made, if proposal is assented
there to receiver.
6. Agreement = Offer + Acceptance
Offer
A offer is proposal which is made by one party to another to enter into a legally
binding agreement with him.sec.2(a)
Acceptance
A contract emerges from the acceptance of an offer.
7. Consensus ad-idem
According to sec.13,meeting of minds or identity of minds or receiving the same thing
in same sense at same time.
9. Essential of a valid Contract
(according to sec. 10)
1. Offer and acceptance
2. Intention to create legal relationship
3. Lawful consideration
4. Capacity of parties-competency
5. Free and genuine consent
6. Lawful object
7. Agreement not declared void
8. Certainty and possibility of performance
9. Legal formalities
