Indian contract act 1872
Section 1
Short title – The Indian Contract Act 1872
Extent – to the whole of India
Commencement – on the 1st September, 1872
section 2 - definitions
(a) proposal - when a person signifies his willingness to another person to do something or obstain
from doing something, with a view of to obtain assent from that person, is said to make a proposal.
(positive acceptance and negative acceptance)
eg - A proposes B. if u do not file a suit against me for defamation, i shall give you 1 lakh rupees.
the proposal is to obstain from doing something. (it is negative proposal)
(b) promise - when the person to whom the proposal was made, signifies his assent that is propsal is
said to be accepted. A proposal, when accepted becomes a promise.
(c) the person making the proposal is called "Promisor" and the person accepting the proposal is
called the "promisee".
(d) consideration for the promise.
(e) every promises or set of promises, forming the cosiderations for each oyher, is an agreement.
(f) promises which forms the consideration or a part of consideration for each other are called
reciprocal promises.
(g) an agreement not enforceable by law is said to be void agreement.
(h) an agreement enforceable y law is a contract.
(i) A contract that can be enforced by one or more parties involved, but not by all of them, is known
as a voidable contract. This means that some people in the contract have the choice to enforce it
while others don't.
(j) A contract which ceases to be enforceable by law becomes void.
Section 3
The communication of proposals, the acceptance of proposals, and the revocation of proposals and
acceptances, respectively, are deemed to be made by any act or omission of the party proposing,
accepting or revoking, by which he intends to communicate such proposal, acceptance or revocation.
Section 4
The communication of a proposal is complete when it comes to the knowledge of the person to
whom it is made.
Section 5
Section 6
Proposal is revoked -
1. the person who made the offer (the proposer) communicates their decision to withdraw or cancel
the offer by sending a notice to the other party.
2. If the offer had a specific deadline for acceptance, and that deadline passes without the other
party accepting the offer.
If there was no specific deadline, but a reasonable amount of time passes without the other party
accepting the offer.
3. The offer can also be considered canceled if the person accepting the offer doesn't meet a
condition that was required before they could accept it.
4. If the person who made the offer (the proposer) dies or becomes insane, and the person who
received the offer (the acceptor) finds out about it before they accept the offer, then the offer is
automatically canceled.
Section 7
Section 8
If someone fulfills the requirements or conditions mentioned in an offer or accepts something in
return for a promise made in that offer, it is considered as accepting the offer.
Section 9
If a promise is made using spoken or written words, it's called an "express" promise. If the promise is
conveyed without using words, it's called an "implied" promise.
