Agnivesh Kumar Singh, School of Law, Bennett University
INTRODUCTION
A contract refers to an agreement between two or more parties that is legally binding in nature It is in context of exchange of goods, services, money or property through the actions of 'Offer 'and 'Acceptance'. Sir William Anson defined a contractual agreement as:
'Contract is a legally binding agreement between two or more persons by which rights are acquired by one or more to acts or forbearances on the part of the others1'.
A contractual agreement is always voluntary in nature; however, it is subject to certain terms and conditions to which all subjected parties are bound by. In simple words, it is an exchange of promise or set of promises which are legally binding upon each other. The law of contract is governed through the Indian Contract Act, 1872 as well as the Specific Relief Act, 1963. It is through the provisions of these act that actions of entering, execution and relief in cases of breach of contracts are governed. The process of entering into a contractual agreement has been specified based on certain essential elements, which have been specified in in the provisions of the Indian Contract Act, 1872. These range from the necessary actions of “offer and acceptance2”, to other elements such as competency of the parties to enter in to a contract as well as existence of free consent of both the parties. In the absence or contradiction of these elements, the contract is declared void ab-initio.
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