THE INDIAN CONTRACT ACT
THE
INDIAN CONTRACT ACT
The
Law of Contract Constitutes the most important branch of mercantile or
commercial law. It affects everybody, more so, trade, commerce anq industry. It
may be said that the contract is the foundation of the civilized world.The law
relating to contract is governed by the Indian Contract Act, 1872 (Act No. IX
of 1872). The preamble to the Act says that it is an Act "to define and
amend certain parts of the law relating to contract". It extends to the
whole of India except the State of Jammu and Kashmir.The Act mostly deals with
the general principles and rules governing contracts. The Act is divisible into
two parts. The first part (Section 1-75) deals with the general principles of
the law of contract, and therefore applies to all contracts irrespective of
their nature. The second part (Sections 124-238) deals with certain special
kinds ofcontracts, e.g., Indemnity and guarantee, bailment, pledge, and agency.
The
term contract has been defined by various authors In the following manner:
"A
contract is an agreement creating and defining obligations between the
parties".
-Salmond
"A
contract is an agreement enforceable at law, made between two or more persons,
by which rights are acquired by one or more to acts or forbearances on thepart
of the other or others".
-Anson
