History Of Indian Contract Act 1872

The law relating to contracts in india is contained in Indian Contract Act, 1872. The Act came into force with effect from september 1, 1872. It as applicable to the whole world of india expect the State of Jammu & Kashmir.

      The Act as enacted originally had 266 Sections divided into following groups :

Sections       

 General Principles of Law of Contract                                         1 to 75

     Contract relating to state of Sale of Goods                                76 to 124*

                      Special kinds of Contracts

     (for example indemnity, guarantee, bailment & pledge                 125 to 238

        Contracts relating to Partnership                                              239 to 266*

      *These sections were repealed from the Contract Act 1872 and two new Acts were enacted for the same :

1. Sale of Good Act, 1930
2. Partnership Act, 1932

   The Indian Contract Act in it presents form may be divided into two parts. The First part (Section  1 to 75) deals with the general principals of the law of contract which  apply to all types of contracts irrespective of their nature. The second part (section 124 to 238) deals with special types of contracts namely Indemnity and Guarantee, Bailment and pledge, Agency etc.

Contract Defined

   "A Contract is an agreement creating and defining obligations between the parties."

-Salmond

"A legally binding agreement made between two or more persons by which rights are acquired by one or more to acts or forbearances on the other or others."

-Sir William Anson

Section 2 (h) of the Contract Act defines a Contract as "an agreement enforceable by Law"