indian contract act 1872

This Act may be called be the Indian Contract Act, 1872.

Extent, commencement - It extends to the whole of except the State of Jammu and

Kashmir; and it shall come into force on the first day of September, 1872.

following are the important concepts or usages in this act :

(a) When one person signifies to another his willingness to do or to abstain from

doing anything, with a view to obtaining the assent of that other to such act or

abstinence, he is said to make a proposal;

(b) When a person to whom the proposal is made, signifies his assent thereto, the

proposal is said to be accepted. A proposal, when a accepted, becomes a promise;

(c) The person making the proposal is called the "promisor", and the person

accepting the proposal is called "promisee",

(d) When, at the desire of the promisor, the promisee or any other person has done

or abstained from doing, or does or abstains from doing, or promises to do or to

abstain from doing, something, such act or abstinence or promise is called a

consideration for the promise;

(e) Every promise and every set of promises, forming the consideration for each

other, is an agreement;

(f) Promises which form the consideration or part of the consideration for each other,

are called reciprocal promises;

(g) An agreement not enforceable by law is said to be void;

(h) An agreement enforceable by law is a contract

;

(i) An agreement which is enforceable by law at the option of one or more of the

parties thereto, but not at the option of the other or others, is a voidable contract;

(j) A contract which ceases to be enforceable by law becomes void when it ceases to

be enforceable.