The document discusses the history and evolution of contract law in India. It notes that the fundamentals of contract law were present under ancient Hindu law, recognizing concepts like offer/acceptance, consideration for contracts of sale or debt but not gifts, and suretyship. Muslim rule later influenced contract law with concepts from Islamic law. Under British rule, English common law was introduced. Later, the Indian Contract Act of 1872 was passed, establishing a common contract law for all of India, standardized and codified based on recommendations from the Law Commission.
3. The fundamentals of the law of Contract were
present in ancient India.
In ancient times, it was based on adherence to
the truth that it was considered to be the pious
duty of each person to pay the debts taken.
It was the religious belief of the people that a
person dying without paying his debts would go
to hell.
It was considered to be the duty of the King to
ensure that the persons performed the
agreements entered into by them
4. The Doctrine of offer and acceptance preceding
the agreement was recognized under Hindu law.
It was also recognized that there should be
consideration in a contract of sale or a debt while
no consideration was required for a gift.
The Hindu law also recognized the concept of
surety ship, interest on debt etc.
A contract brought about by force, undue
influence or opposed to public policy could not
be enforced.
There was absence of any system of law and
reporting of court decisions.
5. After the establishment of the Muslim rule in
India, the law of contract was greatly
influenced by the Islamic notions.
The Arabic word for contract is ‘aqd’ meaning
a tie or conjunction.
The Muslim Jurisprudence also suffered by
the absence of a regular system of law
reporting.
During the reign of Aurengzeb, the Fatwa
Alamgiri is the only system of law reporting.
6. Under British rule English Common Law and
Statute Law were introduced by the charters
of 18th Century.
But the Judges applied the English law as
mostly the Judges were Englishmen.
In order to provide relief, the Statute of 1781
provides that all matters relating to contract
should be decided by the Hindu laws and
usage in case of Hindu.
And by the Mohammedan laws and usage in
case of Mohammedans.
7. In case one of the parties was Hindu and the
other Muslim, the law of the defendant was to
be applied.
Hindus and Muslims were governed by their
respective law and usages.
The practice continued up to the passing of
Indian Contract Act, 1872.
the charter Act of 1853 made a provision for
the appointment of a Law Commission to
evolve a common law applicable in the whole
India.
8. The Law Commission submitted a draft on
July 28, 1966, which was after several
amendments, adopted by the Legislature in
1872 in the form of Indian Contract Act.
There are several other statues relating to
contract:-
The Indian partnership act, 1932.
The Sale of Goods Act 1930.
The Specific Relief Act 1963.
The Negotiable Instrument Act, 1881.
9. Something by which a person is bound or
obliged to do certain things, and which arises
out of a sense of duty or results from custom,
law, etc.
A binding promise, contract, sense of duty,
etc.
The act of binding or obliging oneself by a
promise, contract, etc.
That if a man promised something the
promise shall be and must be performed by
him.
10. As per Law Lexicon:
“An obligation which arises from a contract”.
