In the world of commerce, thousands of promises are made every day. But when does a casual promise transform into a legally binding obligation? The answer lies in the Indian Contract Act, 1872. According to Section 2(h) of the Act, a contract is “An agreement enforceable by law.”2 To move from a mere “agreement” to … Read more
In our daily lives, we make countless agreements. We agree to meet friends for coffee, agree to attend a family wedding, or agree to buy milk from the shop. While all of these are “agreements,” only the last one is likely a “contract.” Why does the law enforce the promise to pay for milk but … Read more
We have now journeyed through the basics of the Indian Contract Act, 1872—from the first spark of an Offer to the binding seal of Acceptance, and the crucial rules of Communication. Chapter 1 (Sections 1–9) is not just an introduction; it is the foundation upon which the entire superstructure of mercantile law is built. Without … Read more
1. Balfour v. Balfour (1919) (The foundation of “Intention to Create Legal Relations”) 2. Lalman Shukla v. Gauri Datt (1913) (Communication of Offer) 3. Carlill v. Carbolic Smoke Ball Co. (1893) (General Offer & Acceptance by Performance) 4. Felthouse v. Bindley (1862) (Silence is NOT Acceptance) 5. Harvey v. Facey (1893) (Invitation to Offer vs. … Read more
Contracts are classified into different categories based on their validity or enforceability. The Indian Contract Act, 1872, clearly defines which agreements are good in law and which are worthless paper. 1. Valid Contract (Section 2(h)) A valid contract is one that satisfies all the essential elements of Section 10 (Offer, Acceptance, Consideration, Capacity, Free Consent, … Read more
A contract might have all the technical essentials—offer, acceptance, and consideration—but if its purpose is illegal or immoral, the law will not touch it. Section 23 of the Indian Contract Act, 1872, acts as a filter to stop agreements that are harmful to society. 1. Section 23 Explained The section states that the consideration or … Read more
The Doctrine of Privity of Contract is a fundamental principle of English Common Law that is also applicable in India. It determines who has the right to enforce a contract in court. 1. Meaning and Principle The term “Privity” implies a connection or bond. The general rule is: “Only a party to the contract can … Read more
The doctrine of Consideration is one of the most fundamental principles of the Indian Contract Act. It is often described as the “price” of the contract. Without consideration, a promise is usually just a social obligation, not a legal one. 1. Meaning of Consideration Section 2(d) of the Indian Contract Act, 1872 defines consideration as … Read more
In the Indian Contract Act, 1872, “Timing” is everything. Since the parties are not always sitting face-to-face (they might be in different cities sending letters), the law must define exactly when a contract is born and when it is too late to back out. 1. Communication of Offer (Section 4) The rule for the offer … Read more
If an offer is the “question,” acceptance is the “answer.” Just as a lit matchstick causes no fire without gunpowder, an offer creates no legal rights until it is accepted. 1. Meaning of Acceptance Section 2(b) of the Indian Contract Act, 1872 defines acceptance as: “When the person to whom the proposal is made signifies … Read more