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A contract may be defined as a legally binding agreement made by two or more parties.

It
has also been defined as a promise or set of promises a breach of which the law provides a
remedy and the performance of which the law recognizes as an obligation. According to Anson,
“A contract is an Agreement enforceable by law made between two or more persons by which
rights are acquired by one or more to acts or forbearances on the part of the other or other’s”.
According to Salmond, “Contract is an Agreement, creating and defining obligations. So the
following below are the sources of the law of contract.

Statutes; This are the source of the law of contract, the principle legislation that provides
for the general principles of contract law in Tanzania is the Law of Contract Act. And also
statutes categorized into two that the first is principle legislation foristance the law of contract
Act, Cap 345, R.E 2019. Likewise subsidiary legislation may either be regulation, order,
procamation rules foristence, Economic and Organised Crime Control Rules of 2016, The
Capital Markets and Securities Regulations, 2016 and others.

Common law; This provided under section 2(3) of the Judicature and application of laws Act
Cap 358, R.E 2019. The substance of the Contract Act occasions a number of lacunas on some
aspects of contract law. It means it does not provide for any principles for some of the matters
relating to contracts and when this happens the applicable law would be the common law of
England on contracts. Prof. Nditti, an expert in contract law of East Africa has this to say about
the application of English common laws to Tanzania. “Where the contract Act is silent on any
particular aspect of contract law, English common Law of contract as modified by equity and
acts of parliament is applicable". Foristence in a case of Tanganyika Garage Limited v. Marcel
G. Mafuruki (1975) LRT 23.

International Convention/Treaties; These are international agreements concluded between


two or more states either at their own or through an international organization. This source of
law of contract is very significant in international trade transactions. Those who wish to engage
in cross border business must identify the sources of law which governs such business with the
foreigner before embarking into such ventures. Example of the basic international convention in
business includes; The United Nations Convention on the Use of Electronic Communication in
International Contracts , United Nations Convention on Contracts for the International Sale of
Goods , United Nations Convention on International Bill of Exchange and International
Promissory Note.

Customary law; will apply to customary contracts. Customary laws in Tanzania are
applicable by virtue of section 11(1) of the Judicature and Application of Laws Act, which is to
the effect that customary law shall be applicable to, and courts shall exercise jurisdiction in
accordance therewith in, matters of a civil nature.

Precedent/ cases law; This are cases that have been decided by the Supreme Courts of
Tanzania; the High Court and the Court of Appeal and which have established various principles
on contract law are also sources of contract law.

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