INDIAN CONTRACT ACT 1872
The Indian Contract Act, 1872 is an act which specifies and deals with the principles of the Law of Contract. This Act came into force from the 1st day od September, 1872. It extends to the whole of India except to the State of Jammu and Kashmir. The Act was passed by British India and is based on the principles of English Common Law.
This Act describes different stages in the formation of a contract, its performance, essential elements, breach of contract and remedies for the breach of contract. The Act deals with a number of limiting principles subject to which the parties to the contract may create certain rights or duties for themselves.
- Contract Defined-
A Contract is an Agreement which is enforceable by Law. The agreement is always between two or more parties, but not less than two parties.
An agreement consists of promises between the two parties. For forming a Contract, an agreement must have the following elements-
- Two or more Parties.
- Offer and acceptance.
- Intention to create legal relationship.
- Lawful object and consideration.
- Capacity and competency of the parties.
- Free and Genuine Consent
- Agreement must not be void or declared void by law.
- Possibility of performance.