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Questions and Answers
In which year did the Indian Contract Act come into force?
In which year did the Indian Contract Act come into force?
What was the basis of solving matters in cities outside the presidency towns before the Indian Contract Act?
What was the basis of solving matters in cities outside the presidency towns before the Indian Contract Act?
What is the primary function of a contract in a business transaction?
What is the primary function of a contract in a business transaction?
How many parts is the Indian Contract Act divisible into?
How many parts is the Indian Contract Act divisible into?
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What is the significance of Article 370 in relation to the Indian Contract Act?
What is the significance of Article 370 in relation to the Indian Contract Act?
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What type of contracts are dealt with in the second part of the Indian Contract Act?
What type of contracts are dealt with in the second part of the Indian Contract Act?
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When was the Charter of 1726 issued by King George to the East India Company?
When was the Charter of 1726 issued by King George to the East India Company?
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Why is the Law of Contract considered important?
Why is the Law of Contract considered important?
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What is the primary difference between this branch of law and others?
What is the primary difference between this branch of law and others?
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What is the main purpose of the Indian Contract Act, 1872?
What is the main purpose of the Indian Contract Act, 1872?
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What is the focus of this unit in the context of contracts?
What is the focus of this unit in the context of contracts?
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What does the Act identify and deal with in contractual relationships?
What does the Act identify and deal with in contractual relationships?
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What determines if a promise is legally binding on parties to a contract?
What determines if a promise is legally binding on parties to a contract?
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What happens to agreements that are void?
What happens to agreements that are void?
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Study Notes
The Indian Contract Act, 1872
- Before the Indian Contract Act, English Law was applied in Presidency Towns of Madras, Bombay, and Calcutta under the Charter of 1726.
- In cases where one party was from one religion and the other from another, the law of the defendant was applied in Presidency Towns.
- Outside Presidency Towns, matters were solved based on justice, equity, and good conscience.
Importance of Contract Law
- Contract law is the most important branch of mercantile or commercial law.
- It affects everybody, especially trade, commerce, and industry.
- Contracts are the foundation of the civilized world.
Key Features of the Indian Contract Act, 1872
- The Act was formed on April 25, 1872, and came into force on September 01, 1872.
- Its preamble states that it defines and amends certain parts of the law relating to contracts.
- It extends to the whole of India, including the state of Jammu and Kashmir after the removal of Article 370 of the Indian Constitution.
Structure of the Act
- The Act is divisible into two parts: Sections 1-75 and Sections 124-238.
- The first part deals with general principles of the law of contract, applying to all contracts.
- The second part deals with special kinds of contracts, such as indemnity and guarantee, bailment, pledge, and agency.
Purpose of the Act
- The Act codifies legal principles governing contracts.
- It identifies the ingredients of a legally enforceable valid contract.
- It deals with special types of contractual relationships, such as indemnity, guarantee, bailment, pledge, quasi contracts, and contingent contracts.
- It defines the circumstances in which promises made by parties to a contract shall be legally binding on them.
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Description
Learn about the history of the Indian Contract Act, 1872, and its application in Presidency Towns and other cities during the British period.
