Indian Contract Act of 1872
Act No: 9
w.e.f. 1 September 1872 (This is the same date when indian evidence act came into force)
Contract derived from latin word “Contractum” (Drawn together) (Promise draw krte together two parties) Contract banane ke liye agreement zaroori h. To agree. (Consensus ad adeim)
Law of contract is codified (It has sections) and substantive (Rights and liabilities btata h contract). It is illustrative law. It is branch of business Law (Civil Law). It creates “right in personam”
It is not exhaustive law because it has to go into other acts for remedies.
Indian contract act has two type: General and Special Contract
Offer + Acceptance = Promise
Every Promise and set of promises (reciprocal promise (do promise honge)) + Consideration(Paisa and service ka len den ya kisi ka bhi len den quid pro quo) = Agreement (2e)
Agreement (Consensus ad idem – Same thing in same sense, dono party ne same sense mein smjha, pluraility of person: ek se jayada log honge) + Legally Enforceable = Contract (can be oral or written) (2h)
Legally Enforceable include intention to create LR (Legal purpose), capacity of parties (sound mind and legal age), free consent (If there is no free consent, it can become voidable.), Certainty and Completeness
Every contract is agreement but every agreement is not contract.
General contracts and special contracts refer to two broad categories within contract law, each encompassing various types of agreements. Here’s a breakdown of each:
- General Contracts:
- Definition: General contracts are those agreements that follow the general principles of contract law without any specific legal requirements or regulations tailored to them.
- Examples: Contracts for the sale of goods, contracts for services, lease agreements, and employment contracts are all examples of general contracts.
- Application: General contracts are governed by the general principles of contract law, such as offer and acceptance, consideration, capacity, legality, and consent. Courts generally apply standard contract law principles to resolve disputes arising from general contracts.
- Special Contracts:
- Definition: Special contracts are agreements that are governed by specific laws or regulations that apply exclusively to certain types of contracts.
- Examples: Contracts falling under specific categories such as contracts of agency, bailment, pledge, indemnity, guarantee, and insurance are considered special contracts.
- Application: Special contracts are governed not only by the general principles of contract law but also by specific statutes or regulations that apply to their particular category. These statutes or regulations may impose additional requirements or provide specific remedies unique to that type of contract.
In summary, while general contracts encompass a wide range of agreements governed by general principles of contract law, special contracts are subject to specific laws or regulations tailored to their particular category. The distinction lies in the level of specificity and additional legal requirements applied to special contracts compared to general contracts.
Right in Rem is available against the whole world, whereas Right in Personam is available against a particular person. Right in Rem is an absolute right, as it applies to the property itself. Right in Personam is a relative right, as it depends on the relationship between specific parties.
In legal terms, “substantive law” refers to the actual content of the law, defining rights and obligations of individuals and entities, while “procedural law” outlines the processes and methods used to enforce those rights and obligations. Here’s a breakdown of both:
- Substantive Law: This deals with the substance of the legal matter, such as defining rights, duties, and responsibilities. In contract law, substantive law governs the formation, interpretation, and enforcement of contracts. It establishes the elements required for a valid contract (offer, acceptance, consideration, legality, capacity, and consent) and the rights and obligations of the parties involved. Substantive law also covers issues like contract interpretation, breach of contract, remedies for breach, and the validity of contract terms.
- Procedural Law: This concerns the processes and procedures involved in enforcing substantive law. It dictates how legal actions are initiated, conducted, and resolved through the legal system. In contract law, procedural law would include rules regarding filing a lawsuit, pre-trial procedures, evidence presentation, trial procedures, and appeals.
Now, regarding why the contract act is considered substantive, it’s because it primarily deals with defining and governing the rights and obligations of parties entering into contracts. The Indian Contract Act, for example, lays down the substantive rules regarding the formation, validity, and enforceability of contracts in India. It outlines the essential elements of a valid contract, rules for interpreting contracts, and remedies available in case of breach. These provisions constitute the substantive law of contracts in India.
“Quid pro quo” is a Latin phrase that translates to “something for something” or “this for that.” In a legal and broader context, it refers to the exchange of something valuable or the consideration given in return for something else. Quid pro quo is commonly used in contract law, employment law, and in discussions related to transactions and negotiations.
Here’s how it applies in different contexts:
- Contract Law: In contract law, a valid contract requires an exchange of consideration, which is essentially the quid pro quo. Consideration is what each party gives up or promises to give up in exchange for the other party’s promise. For example, if you agree to pay someone $100 in exchange for them delivering a product to you, the $100 is your consideration for their promise to deliver the product.
Overall, the concept of quid pro quo underscores the principle of reciprocity and fairness in exchanges, whether in legal contracts, employment relationships, or broader negotiations.