Indian Contract Evidence act 1872 pdf 1872 is the main source of law regulating contracts in India. It determines the circumstances in which promises made by the parties to a contract shall be legally binding and the enforcement of these rights and duties.
The Act as enacted originally had 266 Sections, it had wide scope and included. Indian Contract Act embodied the simple and elementary rules relating to Sale of goods and Partnership. The developments of modern business world found the provisions contained in the Indian Contract Act inadequate to deal with the new regulations or give effect to the new principles. 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.
When the person to whom the proposal is made, signifies his assent there to, the proposal is said to be accepted. A Proposal when accepted becomes a promise. In simple words, when an offer is accepted it becomes promise. When the proposal is accepted, the person making the proposal is called as promisor and the person accepting the proposal is called as promisee. 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. Price paid by one party for the promise of the other Technical word meaning QUID-PRO-QUO i. Every promise and set of promises forming the consideration for each other.
An agreement enforceable by Law is a contract. Therefore, there must be an agreement and it should be enforceable by law. Promises which form the consideration or part of the consideration for each other are called ‘reciprocal promises’. An agreement not enforceable by law is void.
Law at the option of the other or others. A contract which ceases to be enforceable by Law becomes void when it ceases to be enforceable. When the person to whom the proposal is made, signifies his assent thereto, the proposal is said to be accepted. A proposal, when accepted, becomes a promise. Acceptance should be absolute and unqualified. If the parties are not in ad idem on all matters concerning the offer and acceptance, there is no valid contract. For example, “A” says to “B” “I offer to sell my car for Rs.