DEFINITION: Every promise and every set of promise that forms the consideration for each
other is an agreement. A contract may be defined as an agreement between two or more parties
that is intended to be legally binding. An agreement is formed when one party accepts the offer
of other and involves a meeting of the minds, which means agreeing to the same thing in the
same sense. Agreement subject to ratification by others who are not parties to it is not a
conclusive contract. All agreements are contracts if they are made by the free consent of parties
competent to contract in exchange of a lawful consideration and with a lawful object, then such
agreements are not expressly declared to be void. If any of the following is missing then an
agreement is not formed and the contract shall not be legally binding. Section 20 however talks
about an agreement being void if both parties are under the impression of mistake of fact. The
explanation to the section however explains the exception that an erroneous opinion as to the
value of thing which forms the subject-matter of the agreement may not to be deemed to be a
mistake of fact. An agreement is defined u/s 2 (e) as ‘every promise and every set of promises,
forming consideration for each other. When a proposal is accepted it becomes a promise. Thus
an agreement is an accepted proposal. Therefore, in order to form an agreement there must be a
proposal or an offer by one party and its acceptance by other party. In short,
Agreement=Proposal + Acceptance. 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
are not expressly declared by the Act to be void.
The Indian Contract Act, 1872 prescribes the law relating to contracts in India. The Act was
passed by British India and is based on the principles of English Common Law. It is applicable
to all the states of India except the state of Jammu and Kashmir. It determines the circumstances
in which promises made by the parties to a contract shall be legally binding and the enforcement
of these rights and duties.
Definition: Every promise and every set of promise that forms the consideration for each other is
an agreement. A contract may be defined as an agreement between two or more parties that is
intended to be legally binding. An agreement is formed when one party accepts the offer of other
and involves a meeting of the minds, which means agreeing to the same thing in the same sense.
Agreement subject to ratification by others who are not parties to it is not a conclusive contract.
research question:
1. Whether the contract be unlawful if it is imposible to become?
2. Why didn’t the act change after India’s independence?
objective of study:
The objective of study is to prove whether it is lawful or not if contract is imposible to do and
this project revolves around the circumstance for which Indian legislators not changing this act.
literature review
Sir William Anderson ‘Law of Contract’
Avatar Singh ‘Law of Contract’
Bare Act ‘The Indian Contract Act,1872’
research methodology:
the methodology for this project is exploratory and explanatory.
scope of study
the scope of study is restricted to only Indian Contract Act, 1872. This is the act which came into
force by the Britishers and this act is taken from the original form of Merchantile Law.
Significance
The significance of the study is that this project brings out the point whether it is lawful or
unlawful if the act which is promised and made into contract is imosible to be done and the
circumstances in which Indian Govermnet or legislatores were unable to change the act which
came into force from the time of Britishers.
