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Indian Contract Act, 1872: Introduction

The Indian Contract Act, 1872 governs contract law in India and is based on English Common Law, applicable throughout the country since September 1, 1872. It defines key terms such as proposal, acceptance, agreement, void agreement, contract, and voidable contract, emphasizing that not every agreement qualifies as a contract unless it creates a legal obligation. The Act outlines the essential elements required for an agreement to be enforceable by law.

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14 views1 page

Indian Contract Act, 1872: Introduction

The Indian Contract Act, 1872 governs contract law in India and is based on English Common Law, applicable throughout the country since September 1, 1872. It defines key terms such as proposal, acceptance, agreement, void agreement, contract, and voidable contract, emphasizing that not every agreement qualifies as a contract unless it creates a legal obligation. The Act outlines the essential elements required for an agreement to be enforceable by law.

Uploaded by

yogeshpandey.k
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Indian Contract Act, 1872

 Introduction –
1) INDIAN CONTRACT ACT, 1872 governs law relating to contracts in India.
2) The Act was passed by British India and is based on the principles of English Common Law.
3) This Act is applicable to whole of India including Jammu and Kashmir.
4) The Act came into effect from 1st September, 1872 and applies to all contracts in India.

 Important Definitions under the Act –


1) Proposal – Sec 2(a)
When one person signifies to another his willingness to do or to abstain from doing anything,
with a view to obtaining the assent of that other to such act or abstinence, he is said to make a
proposal.
2) Acceptance – Sec 2(b)
When the person to whom the proposal is made signifies his assent thereto,
the proposal is said to be accepted. A proposal, when accepted, becomes a
promise
Person making the proposal is called the “promisor”, and the person accepting
the proposal is called the “promisee”.
3) Agreement – Sec 2(e)
Every promise and every set of promises, forming the consideration for each
other, is an agreement.
In simple words, Agreement = Offer + Acceptance
4) Void Agreement – Sec 2(g)
An agreement not enforceable by law is said to be void.
5) Contract – Sec 2(h)
An agreement enforceable by law is called as contract.
In simple words, Contract = Agreement + Enforceability
6) Voidable Contract –
An agreement which is enforceable by law at the option of one or more of the parties thereto,
but not at the option of the other or others.

 Is every agreement contract?


1) No, every agreement is not a contract.
2) An agreement to become a contract must give rise to a legal obligation (duty)

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