Basic Points

INDIAN CONTRACT ACT, 1872

1. Indian Contract Act, 1872 came into force on 1st September, 1872.
2. It applies to whole of India except the state of J & K.
3. The provisions related to contract are contained in Indian Contract Act, 1972.
4. The provisions related to sale of goods were originally contained in Indian Contract Act,
1872.
5. The provisions related to sale of goods are contained in the Sale of Goods Act, 1930.
6. The Sale of Goods Act came into force on 1st July, 1930.
7. Indian Partnership Act came into force on 1st oct, 1932.
8. The provisions related to partnership are contained in Indian partnership Act, 1932.
9. Contract [Sec. 2(h)] An agreement enforceable by law.
10. Agreement [sec 2(e)] Every promise & e very set of promises forming consideration for
each other.
11. Promise [sec 2 (b)] A proposal when accepted becomes a promise.
12. An agreement is an accepted proposal.
13. Consideration Quid pro quo i.e., something in return.
14. Enforceability by law Agreement which creates legal obligation on the part of parties.
(Balfour Vs. Balfour)