The Contract Act, 1872 – Consists of Dash Sections
The Contract Act, 1872 is one of the most important laws in India that governs the legal aspects of contracts. The Act was enacted to ensure that all contracts made in the country are valid and enforceable.
The Contract Act, 1872 consists of 238 sections that provide a comprehensive framework for the formation, performance, and termination of contracts. In this article, we will discuss the major sections of the Contract Act, 1872 that are essential for any individual or business dealing with contracts.
Section 1: Short Title, Commencement, and Extent
This section provides the short title, commencement, and extent of the Contract Act, 1872. The Act extends to the whole of India except for the state of Jammu and Kashmir.
Section 2: Interpretation Clause
This section defines the different terms used in the Act, such as agreement, promise, consideration, proposal, acceptance, and others.
Section 3: Communication, Acceptance, and Revocation of Proposals
This section deals with the rules for communication, acceptance, and revocation of proposals. It states that a proposal may be revoked at any time before the communication of its acceptance is complete.
Section 4: Communication When Complete
This section deals with the communication of acceptance. It states that the communication of acceptance is complete as against the proposer when it is put in a course of transmission to him, so as to be out of the power of the acceptor.
Section 5: Revocation of Proposals and Acceptances
This section provides for the revocation of proposals and acceptances. It states that a proposal cannot be revoked after the communication of its acceptance is complete, and an acceptance cannot be revoked once it has been communicated.
Section 6: Contracts
This section defines a contract as an agreement enforceable by law. It states that an agreement which is not enforceable by law is void.
Section 7: Performance of Contracts
This section deals with the performance of contracts. It states that the parties to a contract must either perform or offer to perform their respective promises, unless such performance is dispensed with or excused under the provisions of the Act or any other law.
Section 8: Effect of Default as to Promised Performance
This section deals with the effect of default as to promised performance. It states that if a promisor fails to perform the promise without any reasonable excuse, the promisee may put an end to the contract, and is entitled to compensation for any loss or damage caused to him as a result of the breach of the contract.
Section 9: Quasi-Contracts
This section deals with quasi-contracts. It states that a person who has received any advantage by mistake or under coercion must restore it or compensate for it.
These are some of the major sections of the Contract Act, 1872. The Act also deals with other important aspects of contracts such as void agreements, illegal agreements, the capacity to contract, contingent contracts, and others.
In conclusion, the Contract Act, 1872 is a crucial law that governs the legal aspects of contracts in India. It provides the necessary framework for the formation, performance, and termination of contracts, and plays a vital role in ensuring that all contracts made in the country are valid and enforceable.