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  • Indian Contract Act, 1872: (Act No 9 of 1872 Including XI Chapters 266 Sections)

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    The Indian Contract Act of 1872 defines and governs contract law in India. [1] It consists of 11 chapters and 266 sections establishing the general principles of contract law. [2] A contract is defined as an agreement that is enforceable by law, containing an offer, acceptance, lawful consideration, capacity to contract, free consent, and lawful object. [3] The Act establishes rules for specific types of contracts such as indemnity, guarantee, bailment, and agency.

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    The Indian Contract Act of 1872 defines and governs contract law in India. [1] It consists of 11 chapters and 266 sections establishing the general principles of contract law. [2] A contract is defined as an agreement that is enforceable by law, containing an offer, acceptance, lawful consideration, capacity to contract, free consent, and lawful object. [3] The Act establishes rules for specific types of contracts such as indemnity, guarantee, bailment, and agency.

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    823 views7 pages

    Indian Contract Act, 1872: (Act No 9 of 1872 Including XI Chapters 266 Sections)

    Uploaded by

    heretostudy
    The Indian Contract Act of 1872 defines and governs contract law in India. [1] It consists of 11 chapters and 266 sections establishing the general principles of contract law. [2] A contract is defined as an agreement that is enforceable by law, containing an offer, acceptance, lawful consideration, capacity to contract, free consent, and lawful object. [3] The Act establishes rules for specific types of contracts such as indemnity, guarantee, bailment, and agency.

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    of 7

    Indian Contract Act , 1872

    ( Act No 9 of 1872 including XI Chapters 266 Sections )

    Preamble :- Whereas it is expedient Date of enactment :- 25th April, 1872


    to define amend certain Date of enforcement :- 1st September, 1872
    parts of law relating to contract. Draft by :- Lord Romilly
    ( Second Law Commission (1863-1866)
    Extent :- Whole of India
    General Principles of Contract – I

    Preliminary Chapter 1:- Chapter 2 :- Chapter 3 :- Chapter 4 :- Chapter 5 :- Chapter 6 :-


    of the of contracts of contingent of the Quasi Contract of the
    Short Title ( Sec.1) communication voidable contracts (Sec. performance of consequences of
    acceptance and contracts, and 31-36) contracts ( Sec. Breach of
    Definition ( Sec. 2 ) Revocation of void agreement 37-67) Contract (Sec.
    Proposals ( Sec. (Sec. 10-30) 73-75)
    3-9)

    Contract which By whom Time and Place for Performance of Appropriation of Contracts which
    must be performed contracts must be performance (Sec. reciprocal promises Payments (Sec 59- need not be
    (Sec. 37-39) performed (Sec. 46-50) (Sec. 51-58) 61)) performed (Sec.
    40-45) 62-67)
    LAW
    Meaning
    Set of Rules
    Meaning of Law :- Law means a “set of rules” which governs our behaviors and relating in a civilized society.
    Law of Contract creates jus in personem and not in jus in rem.
    Prior of this English Law of Contract was followed in India.
    The Indian Contract Act consists of the following
    Two Parts

    General Principle of Contract (Sec. 1 to 75 ) :- Specific Contract ( Sec.124-238) :- These specific


    These principles apply to all kinds of contracts contracts are indemnity , Guarantee , Bailment , Pledge
    irrespective of their nature. and Agency.

    Definitions :-
    1- According to Pollock :- “ Every agreement and promise enforceable at law is a contract.”
    2- According to Salmond :- “ A contract is an agreement creating and defining obligation between the
    parties.”
    3- According to Sec. 2(h) of contract Act, 1872 An agreement enforceable by law is a contract.”
    S.No. PART CHAPTERS SECTIONS SUBJECT
    A General Preliminary 1-2 General
    Principles
    Chapter 1 3-9 Proposal, Acceptance and Revocation
    Chapter 2 10-30 General Rules about Contract
    Chapter 3 31-36 Contingent Contract
    Chapter 4 37-67 Of the performance of contract
    Chapter 5 68-72 Quasi – Contract
    Chapter 6 73-75 Contractual Remedies
    B Specific Chapter 8 124-147 Contract Of Indemnity and Guarantee
    Contract
    Chapter 9 148-181 Contract of Bailment and Pledge
    Chapter 10 182-238 Agency

    Sources of Mercantile (Contract) Law in India

    English mercantile Indian States Law Judicial Decisions Customs and Usages
    Essentials of a Valid Contract
    All agreements are contracts , if they are made-:-
    1- Proper offer and proper acceptance with intention of create legal relationship
    Case :- Balfour V Balfour (1919) 2 K.B. 571
    2- Lawful consideration:- Price paid by the one party for the promise of the other. Technical word
    meaning QUID – PRO – QUO i.e., something in return .
    Case :- Durga Prasad V Baldev (1880) 3 All. 221
    3- Capacity :- (Sec.11)
    4- Free consent :- Consent means agreed upon something in the same sense i.e. there should be consensus
    – ad – idem. A consent is said to be free when it is not caused by coercion , undue influence , fraud ,
    misrepresentation or mistake.
    Case :- Ammiraju V Seshmma (1917) 41 Madras 33
    5- Lawful object :-
    6- Possibility of persormance :-
    7- The terms of the agreements are certain or are capable of being made certain (Sec.29)
    8- Not declared void :-
    The agreement should be such that it should be capable or being enforced by law.
    Certain agreements have been expressly declared illegal or void by the law.
    9- Necessary Legal Formalities :-
    A contract may be oral or in writing.
    If legal formalities are not carried out then the contract is not enforceable by law.
    Ex:- A promise to pay a time barred debt must be in writing.
    ''All contracts are Agreements, but all Agreement are not Contracts.''
    Proposal + Acceptance = Promise ( Sec. 2 (c)
    (Sec 2(a) (Sec.2(b)

    +
    Consideration (Sec. 2 (d)

    Agreement (Sec. 2 (e)

    In enforceable by law If not enforceable by law


    All essential of a valid contract are available Any essential of a valid contract is not available

    Contract ( Sec. 2(h) :- void agreement


    (Sec. 2 (g)

    Void Contract Voidable Contract


    Sec. 2 (J) (Sec.2 (I)
    Deference between Contract and Agreement :-
    S.No. BASIS CONTRACT AGREEMENT
    1 Section Sec 2 (h) Sec 2 (e)
    2 Definition A contract is an agreement `Every promise or every set of promises forming
    enforceable by law consideration for each other is an agreement
    3 Enforceability Every contract is Every promise is not enforceable
    enforceable
    4 Inter relationship A contract includes an An agreement doesn’t include a contract
    agreement
    5 Scope The scope of contract is Its scope is relatively wider, as it includes both
    limited, as it includes only social agreement and commercial agreements.
    commercial agreements
    6 Validity Only legal agreement are An agreement may be both legal and illegal.
    called contracts
    7 Legal Obligation Every contract contains a It is not necessary for every agreement to have
    legal obligation legal obligation.
    Conclusion:- Thus we see that an agreement may be or may not be enforceable by law, and so all
    agreement are not contract. Only those agreements are contract which are enforceable by law.
    Hence, we can conclude “ All contracts are agreement, but all agreements are not contracts.”

    Compiled by
    Dr. Vikas Kumar
    Assistant Professor
    ILS, CCSU campus, Meerut
    For further queries you may reach us via..
    E-mail - [email protected]
    Mob - 9058459666

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