Untitled Quiz

Study Notes

Prior to the Indian Contract Act of 1872, various sources were used to govern contracts in India.
Ancient and medieval times relied on Hindu Law principles, like Vedas, Dharam Shastras, Smritis, and Shrutis.
During the Mauryan period, contracts were based on "bilateral transactions," meaning both parties agreed on the terms.
The Mughal period used Mohammedan Law of Contract where the Arabic word ‘Aqd’ meant contract, ‘Ijab’ for proposal and ‘Qabul’ for acceptance.
Islamic law required express consent on the same thing in the same sense - no formalities were needed.
Hindu law varied from English law, being a compilation of customs and interpretations of Vedas. Minors, intoxicated individuals, elderly people, and disabled individuals could not enter valid contracts under Hindu law.
In the British period, the law was applied differently in presidency towns and other cities, leading to different legal procedures.

The Indian Contract Act, 1872, defines and clarifies contract law in India.
It was enacted on April 25, 1872, and came into effect on September 1, 1872.
The Act extends to all of India, including Jammu and Kashmir after the removal of Article 370 from the Indian Constitution.
It covers both general principles and special kinds of contracts.
The Act is divided into two parts:
- The first part (Sections 1-75) addresses general contract principles, applying to all types of contracts.
- The second part (Sections 124-238) focuses on specific contract types, like indemnity, guarantees, bailments, and pledges.