Short Essay on Contract Act – Social relationships are based on mutual understanding and agreements, and commercial interactions more so, for it is, after all, about the confluence of commercial interests.
This is where the law of contract comes in to ensure fair play and dispute redressal.
Concepts like property, sale, purchase, ownership or title and price are basically economic in nature and necessitate commercial law. The law regulates the contract. The contract facilitates trade and transactions within itself.
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In case of trading in promises for future delivery, traders can reduce uncertainty about the future. This requires adequate legal safeguards so that both the parties to the contract are secure and may plan their commercial moves accordingly.
The Indian Contract Act was enacted in 1872. The Act provides for the enforceability of the contract, competency in capacity of parties, considerations of contract, contract by minors, free consent, bailment, pledge, agency agreements, undue influence, mistake of fact and law, misrepresentation, indemnity and guarantee. The law of contract is complete in itself.
The important aspect of the law of contract is that it deals with only immovable property and leaves movable property outside its ambit. The law of contract provides for the remedy in case of a breach of contract.