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Contract Act

In: Social Issues

Submitted By kunalsingh
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The law of contract is the foundation upon which the superstructure of modern business is built. It is common knowledge that in business transactions quite often promises are made at one time and the performance follows later. Explaining the object of the law Sir William Anson observes:”the law of contract is intended to ensure that what a man has been promised to him shall be performed”

DEFINITIONS

• A contract is an agreement made between two or more parties which the law will enforce

• Pollock: “Every agreement and promise enforceable at law is a contract.”

• Salmond: “A contract is an agreement creating and defining obligations between the parties.”

AGREEMENT

• An agreement is defined as “every promise and every set of promises, forming consideration for each other.”

• A proposal when accepted becomes a promise.

Agreement = Offer + Acceptance

INDIAN CONTRACT ACT 1872

The law of contract in India is contained in the Indian contract act, 1872.
According to section 2(h) of Indian contract act: an agreement enforceable by law is a contract”

ESSENTIAL ELEMENTS OF A VALID CONTRACT

1. OFFER AND ACCEPTANCE:

When one person signifies to another his willingness to do or 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. The first step towards creating a contract is that one person shall signify or make a proposal or offer to the other, with a view to obtaining the acceptance of that another person to whom the offer is made. A proposal when accepted becomes a promise. When the person to whom the proposal is made signifies his assent thereof the proposal is said to be accepted. A proposal when accepted becomes a promise. Consideration: When at the desire of the promisor the promisee or any other person has

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