Meaning Of Contract :-
As a result of increasing complexities of business
environment , innumerable contracts are entered into by the parties in the
usual course of carrying on their business.
Contract is the most usual method of defining the give and
take rights and duties in a business transaction.
The word contract is derived from the Latin word “contract-um”
which means “drawn together”. It denotes a drawing together the minds of two or
more persons to form a common intention giving rise to an agreement. A Contract
is an agreement enforceable by Law , which offers personal rights and imposes
personal obligations , which the law protects and enforces against the parties
to the agreement.
Definitions Of Contract :-
a) According to Sir John Salmond, a contact means “An
agreement creating and defining obligations between parties”.
b) Sir William Anson defines a contract as “A Legal binding
agreement between two or more persons by which rights are acquired by one or
more acts or forbearance on the part of the other or others”.
c) According to Pollock, an “Every agreement and promise enforceable at law is contract”.
d) The Indian Contact Act 1872, Sec 2(h) defines a contract
as follows “An agreement enforceable by law is a contract”.
History Of Indian Contract Act 1872 :-
In the year 1861,the third law commission of British India
under the chairmanship of Sir John Romily presented the report on contract law
f or India. The law commission submitted a draft on 28th July 1866.The draft
contract law after several amendments was enacted as The Act 9 of 1872 on 25th
April 1872 and the INDIAN
CONTRACT ACT 1872 came into force w.e.f 1st September
1872.The Indian Contract Act, 1872 is one of the oldest in the Indian law
regime, passed by the legislature of pre-independence India; it received its
assent on 25th April 1872. The statute contains essential principles f or f
ormation of contract along with law relating to indemnity, guarantee, bailment,
pledge and agency.
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