2. The Indian Contract Act 1872
The law of contract in India contained in Indian Contract Act 1872, which is
based on English common Law. It extends to whole of India except the state of Jammu
and Kashmir. It came into force on the first Sep. 1872. The Act lays down general
principles governing all contracts, but not the rights and duties of the parties. The rights
and duties are decided by the parties themselves.
Scheme of the Act: -
The scheme can be divided into two main groups:
1. General principles of the law of contract.
2. Specific kinds of contracts - a. Indemnity and Guarantee b. Contracts of
Bailment and Pledge c. Contract of Agency.
Meaning and Definition of an Agreement:
An Agreement consists of an offer by one party and its acceptance by
other. In other words, an agreement comes into existence only when one party
makes a proposal to the other party and that other party gives acceptance.
