Understanding the Indian Contract Act, 1872
The Indian Contract Act, 1872, forms the foundation of contract law in India. Enacted during the British colonial era, it codified and structured how agreements are created, interpreted, and enforced. Even over 150 years later, its significance continues to guide commercial and personal agreements across the country. This article delves into the origins, core features, and modern-day relevance of the Indian Contract Act, while also examining its strengths and limitations through a legal lens. What is a Contract? At its essence, a contract is an agreement enforceable by law. Under Section 2(h) of the Indian Contract Act, “An agreement enforceable by law is a contract.” This definition incorporates two vital elements: agreement (i.e., offer and acceptance) and legal enforceability . The distinction between an agreement and a contract is central to the Act. While all contracts are agreements, not all agreements are contracts. Historical Background of the Indian Contract Act,...