THE INDIAN

CONTARCT ACT 1872

 Introduction
“A contract is a legally binding document
between at least two parties that defines and
governs the rights and duties of the parties to
an agreement. A contract is legally
enforceable because it meets the requirements
and approval of the law. “
-Wikipedia
Enforceability
Enforceability of a contract is when someone
can be compelled to observe or forced to obey.
There are four main factors involved in forming
a legally binding, enforceable contract:
• The presentation of an offer.
• An acceptance of the offer.
• Consideration, or the thing of value
offered by each party
• Enforceability
Types of Agreement
The following are types of agreement:
1. Wagering Agreement - Agreements entered into between parties
under the condition that money is payable by the first party to the
second party on the happening of a future uncertain event, and the
second party to the first party when the event does not happen, are
called Wagering Agreements or Wager. There should be mutual chance
of profit and loss in a wagering agreement.
2. Void Agreement - A void agreement definition would be an agreement
or contract with no legal value. Legally, a void agreement means the
contract or agreement is no longer enforceable. While precise
definitions vary by jurisdiction, void agreements are generally
categorized as being void from the beginning and were never valid at
any point.
3. Voidable Agreement - A voidable contract is a formal agreement
between two parties that may be rendered unenforceable for a number
of legal reasons.
4. Implied Agreement - Implied contract is a legally-binding
obligation that derives from actions, conduct, or circumstances of
one or more parties in an agreement. It has the same legal force as
an express contract, which is a contract that is voluntarily entered
into and agreed on verbally or in writing by two or more parties.
5. Express Agreement - An express contract is an exchange of
promises in which the terms by which the parties agree to be bound
are declared either orally or in writing, or a combination of both, at
the time it is made.
6. Conditional Agreement – A contract whose performance depends
on a fact or event that affects legal relations
7. Illegal Agreement - An illegal agreement in business law is a
contract that was made for an illegal reason and is consequently
against the law. If the content of the agreement causes the parties to
perform illegal actions, then the contract is illegal.
Indian Contract Act, 1872
The Indian Contract Act, 1872 prescribes
the law relating to contracts in India and is
the key act regulating Indian contract law.
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 which is enforceable by law.