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Civil Law

Contract Disputes

Contract Act The law relating to contracts in India is contained in the Indian Contract Act, 1872. The Act was passed by British India and is based on the principles of English common law. It is applicable to all the states of India except the state of Jammu & Kashmir. It determines the circumstance in which promise made by the parties to a contract shall be legally binding on them. All of us enter into a number of contracts everyday knowingly or unknowingly.

Each contract creates some rights and duties on the contracting parties. Hence this legislation, the Indian Contract Act 1872, being of skeletal nature, deals with the enforcement of these rights and duties on the parties in India.

What is Contract?

According to section 2 (h) of the India Contract Act,' An agreement enforceable by law is a contract'. Thus for the formation of a contract, there must be –
  • An agreement, and
  • The agreement should be enforceable by law.

All agreements are not enforceable by law and therefore, all agreements are not contracts. Some agreement not enforceable by law.

Contact Disputes

The law regulating a contract in India has been enumerated under India Contract Act, 1872, which states that a contract is a legally binding agreement between two parties, which obligates those parties to perform specific acts as agreed therein. According to section 2 (h) of the India Contract Act,’’ An agreement enforceable by law is a contract.

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