NAME- TANMAY GHOSH
SUBJECT– BUSINESS LAWS , ETHICS AND
GOVERNANCE
PAPER CODE – MB-103
DEPARTMENT- MBA (1ST SEM)
YEAR-2023-25
NAME OF TOPIC- Indian Contract Act , 1872
INTRODUCTION
The Act is based on the principles of English
Common Law. It is applicable to all the
states of India. It determines the
circumstances in which promises made by
the parties to a contract shall be legally
binding. Under Section 2(h), the Indian
Contract Act defines a contract as an
agreement enforceable by Law.
What Is The Meaning Of The
Indian Contract Act 1872?
The Indian Contract Act of 1872 is a
comprehensive legal framework that
controls all commercial relationships in
India. The act lays down the rules and
regulations that need to be followed while
entering into a contract and also provides
remedies for breach of contract. It is one of
the oldest acts in India and has been
amended several times over the years to
keep up with changing economic conditions.
What Are The Key Provisions Of The Indian Contract Act 1872?
The key provisions of the Indian Contract Act
1872 include:
The offer and acceptance rule: This rule states that an
agreement can only be formed when there is an offer from
one party and acceptance from the other party.
Intention to create legal connections: According to this
rule, the people signing the contract must follow the law.
Free consent: The act lays down the rules for determining
whether or not there is free consent between two parties.
The capacity of parties: This provision states that every
party who enters into a contract must be competent
enough to understand its implications and consequences,
and must agree to abide by them.
Consideration
Consideration refers to something which is offered in return for another thing.
For example, you may offer your services as payment for goods purchased
from a store owner or vice versa.
Contracts voidable at the option of one party:-
a) A contract can be cancelled if it was entered into under undue influence
(e.g., force).
b) A contract can be cancelled if it was entered into under coercion (e.g.,
threatening to kill someone).
c) A contract can be cancelled if one party is mistaken about the other
party’s identity or vice versa.
d) A contract can only be made voidable at the option of one party if both
parties are not aware of its contents before signing it. For example, you might
buy a house without knowing that there is asbestos in its walls and floors. In
such cases, you may cancel your purchase agreement because you were
unaware that this could cause serious health issues for your family members
later on time – but only after making necessary enquiries with an expert first!
Contracts voidable due to fraud:- A contract can be cancelled if it is
found that one of the parties has deceived the other party into agreeing.
What Are The Remedies Available In Case Of Breach Of Contract?
The remedies available in case of a breach of contract include:
a) Rescission: This remedy allows you to cancel the contract and
get back any money or goods that you have already given to the
other party.
b) Damages: This remedy allows you to claim damages from the
other party for any losses that you have suffered as a result of the
breach.
c) Specific performance: If damages are not an adequate remedy,
you may ask the court to order the breaching party to perform its
obligations under the contract.
d) Injunction: This remedy allows you to ask the court to order the
other party not to do something that it is prohibited from doing
under the contract.
e) Arbitration: If the parties are unable to resolve a dispute through
negotiations, they can take the matter to arbitration, where an
arbitrator will listen to both sides and make a decision accordingly.
The Indian Contract Act 1872 extends to be a comprehensive
guide that governs all contractual agreements in India. The act lays
down the rules and regulations that need to be followed while
entering into a contract and also provides remedies for breach of
contract. It is one of the oldest acts in India and has been amended
several times over the years to keep up with changing economic
conditions and technological advancements.
The act was enacted in 1872 by the British regime, and its primary
objective is to govern contracts throughout India. It extends over all
territories within Indian jurisdiction except for the state of Jammu &
Kashmir (which is an autonomous region). The act has been
amended several times since then. The latest amendment took
place in 2018 when Section 65A was added to make it easier for
parties who are not located near each other physically but can still
communicate through electronic means such as email or text
messages – this new provision ensures that they have equal legal
rights!
CONCLUSION
The Indian Contract Act 1872 is a law
enacted by the British in India that governs
contracts and agreements. It was drafted to
protect both parties from unfair terms they
may not have known about when agreeing,
as well as to provide guidelines for when
one party breaches the contract. This act
still stands today and provides legal
protections for those who enter into
agreements with others in India or abroad..
