Contract Law Through The Lens Of Ancient Indian Religious Texts

Krish Bhatia, SVKM’S, NMIMS School of Law, Navi Mumbai

ABSTRACT

Law and Religion have co-existed for as long as civilization has, with both aiming to regulate the nature and conduct of civilization. Law is abstract and well defined at the same time while religion is a source of law and exists as a separate entity as well. During ancient times, civilization drew on nature and society to form laws, while in the modern era, laws are more formal in nature and are enacted by the legislature. With religion being a source of law, it is natural for law to have ideas and rules that are similar to that of religion. For instance, the concept of dharma has permeated modern laws and continues to influence laws even today. Contracts exist in every aspect of life, and it is certain that religion too has aspects of contractual obligations in some form or other. The law of contracts is an important and well settled body of commercial law and contracts are indispensable, not only in modern trade but also in modern life. It is assumed that most of the contemporary principles of contract law were developed in England, India is also governed by the Indian Contract Act of 1872, which was drafted by the British, however, contract law existed even during the ancient medieval period which is evident from the Manusmriti, a centuries old religious text of India, that contains detailed verses matters such as breach of contract and its consequences for both parties, it also comments on the contract of pledge and its intricacies. The Ramayana, an Indian epic also contains various relations and instances which can be related to modern principles of contract law. India is famous for the rich culture and history it has, and this paper is an attempt at analysing and interpreting principles of contract law and contractual relations through religious and historical texts.

Keywords: Law, Religion, Contracts, Ancient India, Historical texts