If we look into the history of the Indian contract act 1872, it can be considered as one of the oldest laws related to business in the country. Indian Contract Act 1872 was enacted on 1st September of that year. The law applied to almost all the states of India except Jammu & Kashmir. The Indian contract law is the main law that regulates any contracts signed in India. There are 266 sections in the law. Let us learn some important points related to the IPCC contract act notes.
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The Indian contract act defines all the important laws related to the contract. Therefore, it is important to know what a contract is. It is an accepted agreement or proposal; that is legally defined, understood and enforceable by law. It defines the special rights of the party and all the obligations and rules introduced, defined, discussed and agreed upon by all the signers of the contract.
There are certain essentials related to any contract.
It has to involve at least two parties
The content of the contract must clearly define and discuss the intent of legal obligations.
The contract can also have special provisions, which, when not fulfilled by any of the parties, renders the contract ineffective.
The contract must have clearly defined terms in its list.
The contract might also have specific points related to any performance. The performance has to be executed by either or both parties.
For a successful contract, the consent of both parties is necessary.
All the parties in a contract should be competent enough to sign the contract.
All the signing parties must consider getting something in return in the form of rights, profits, interests, etc.
The contract will be deemed illegal if it is unlawful, can challenge or attack any section of any law, cause harm to any individual, or if the Court considers it to be immoral.
From the beginning of the history of the Indian contract act 1872, all the IPCC contract act notes defined different types of contracts. Based on validity, the types of contracts are valid contracts, agreements or void contracts, voidable contracts, illegal contracts and enforceable contracts. On the basis of formation, the types of contracts are express contracts, quasi-contract, implied contract and E-contract. Based on performance, contract types are executed contracts, unilateral contracts, executory contracts and bilateral contracts.
According to Section 2 (a) of the Indian Contract Act, 1872, the proposal is defined as the offer placed by a party for another party to do or abstain from doing an act, where the proposer expects to obtain consent from the other person. The person making the proposal is called the offeror or promisor, while the party accepting the proposal is called the acceptor or the promisee. The offer can be positive or negative.
According to Section 2 (b) of the Indian Contract Act, 1872, acceptance is defined as the act of the receiving party in providing consent to the proposer. The consent from the acceptor turns the proposal into a promise.
Any offer after being presented by the offeror cannot be revoked. However, communication is not complete by such an act. Rather it is completed when all the norms of the offer are clearly described and are accepted by the acceptor. The communication is generally completed when it is conducted face-to-face; in terms of business letters and e-communications, the timeline of communication is necessary in this case.
An offer can be revoked if it is not found to be fruitful by any of the parties. Every offer has a defined revocation period, after which it cannot be revoked. Moreover, it can be revoked before the completion of acceptance. The acceptance can also be revoked by the acceptor.
According to Section 62 of the Indian Contract Act, 1872, if any of the parties prefer to propose any new contract or modify the previous one, then the previous contract will not need to be followed. The contractors can rescind the contract as well. However, as per Section 62 of the Indian Contract Act, a new contract will only be allowed to be proposed when all the parties agree to it.
Q1. What is a Contract?
Ans. A contract is any offer that is being placed between two or more parties. According to the history of Indian contract act 1872, the Government of India has defined specific laws to support any contract. According to the law, two or more than two parties have to be involved in any contract. In the contract, any offer will be placed between the parties, when the points mentioned in the offer will be clearly defined. The offer will be placed by the offeror, while the other parties who need to speak about their opinion on the matter are called acceptors.
Q2. What are the different types of Contracts?
Ans. According to the IPCC contract act notes, there are different types of contracts depending on a variety of parameters. On the basis of formation, the types of contracts are express contracts, quasi-contract, implied contract and E-contract. On the basis of validity, the types of contracts are valid contracts, agreements or void contracts, voidable contracts, illegal contracts and enforceable contracts. Based on performance, the contract types are executed contracts, unilateral contracts, executory contracts and bilateral contracts. These different types of contracts are defined in the Indian contract act and have been incorporated from time to time.
Q3. What is the Proposal, Acceptance and Communication needed for a Contract?
Ans. Every contract has some salient points which depict some future action. These are called a proposal or offer. The party that offers these proposals are called proposers. All the other parties who react to such offers are called acceptors. The acceptors can accept the proposal, reject it, or put it on hold. Proper communication is necessary for both the proposer and the acceptor. Face-to-face communication is always fruitful. For business letters or e-communications, the timing of the communication is necessary for the success of the communication and the related contract.