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INDIAN CONTRACT ACT, 1872 Chapter - 1 • {Contains section 3 - 9} Section- 3 [ Communication, Acceptance and revocation of proposals ] The communication of proposals, the acceptance of proposals, and the revocation of proposals and acceptance, respectively, are deemed to be made by any act or omission of the party proposing, accepting or revoking, by which he intends to communicated such proposal, acceptance or revocation, or which has the effect of communicating it. Section - 4 [ Communication when complete ] The communication of a proposal is complete when it comes to the knowledge of the person to whom it is made. The communication of an 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; • as against the acceptor, when it comes to the knowledge of the proposer. The communication of a revocation is complete,—•as against the person who makes it, when it is put into a course of

INDIAN CONTRACT ACT, 1872 (Preliminary) • {Contains section 1 and 2} Preamble Whereas it is expedient to define and amend certain parts of the law relating to contracts; It is hereby enacted as follows: Section- 1 [ Short title ] This Act may be called the Indian Contract Act, 1872. Extent, Commencement. -It extends to the whole of India 1[except the State of Jammu and Kashmir]; and it shall come into force on the first day of September 1872. Saving.- 2[* * *] Nothing herein contained shall affect the provisions of any Statute, Act or Regulation not hereby expressly repealed, nor any usage or custom of trade, nor any incident of any contract, not inconsistent with the provisions of this Act. 1. Subs. by Act 3 of 1951, sec. 3 and Sch., for “except Part B States”. 2. The words “The enactments mentioned in the Schedule hereto are repealed to the extent specified in the third column thereof, but” rep. by Act 10 of 1914, sec. 3 and Sch. 11. Section - 2 [ Interpretation Clause

Dactylography - The scientific study of fingerprints as a method of identification. Damage - A sum of money which the Court orders the defendant to pay to the plaintiff as compensation for breach of contract or tort. Damnify - To cause loss, to cause hurt or injury. Death - The ending of life, the cessation of vital functions and signs. Debenture - A document or certificate signed by the officer of a corporation acknowledging indebtedness for money lent and guaranteeing repayment with interest. Debtor -One who owes an obligation to another especially an obligation to pay money. Deceit - The act of intentionally giving a false impression. Decency-The state of being proper, as in speech or dress. Decision- Judicial determination after consideration of the facts and the law. Decree - A judgement delivered by a court. It is a formal expression of an adjudication which conclusively determines the rights of the parties. Deed - A written statement which is signed, sealed and deliv

C.I.F. - Cost, insurance, freight. The cost of goods includes these items. Cabinet - Advisory council to an executive officer especially the President. Canon - A rule or principle, which is accepted as fundamental. Capital - Punishable by execution, involving the death penalty. Case - A proceeding, action, suit or controversy at law or in equity. Case law - The collection of reported cases that form the body of law within a given jurisdiction. Casualty - A serious or fatal accident. Cause - Something that produces an effect or result. Caveat - A warning or proviso. Censure - An official reprimand or condemnation; harsh criticism. Cess - An assessment, tax or levy. Charge - A formal accusation of a crime made by the police in the charge sheet. Charity - Aid given to poor. Charter - An instrument by which a governmental entity grants rights, liberties to citizens. Chattel - Movable property. Cheating - Fraudulent obtaining of another’s property by means of a false symbol o

Bail - Releasing an arrested person after taking bond or sureties that he will regularly attend tbe court and face trial. Bailable - Eligible for bail. Bailee - A person who receives personal Property from another as a bailment. Bailiff - A court officer who maintains order during court proceedings. Bailment - When goods are left by one person with another to hold in accordance with instructions. Bailor - One who provides bail as a surety for a criminal defendant’s release. Bailout - A rescue of an entity from financial trouble. Ballot - A system of secret voting. Banco - A seat or Bench of Justice.  Bankruptcy - A person who is unable to pay his debts can be declared bankrupt by the Court. All his assets and liabilities are taken-over by the court for proper distribution to his creditors. Bar - It is a collective term used for lawyers as a body. Bargain - An agreement between parties for the exchange of promise or performance. Barratry - Vexacious incitement to litigation,

Abacinate - To make a person blind. Abaction - Threatening to a person. Abactor - A person who steals a single beast only. Abadi - It is one of the forms of collecting land revenue. Abalienation - The transfer of an interest or title in property. Abandon - To leave, to give up, to surrender.  Abandonment - Voluntary relinquishment of an mterest or claim, the act of abandoning. Abarnare - To detect or disclose a secret crime; to bring to judgment. Abate - To reduce or put an end, quashing of writ or action. Abatement - Act of eliminating or nullifying. Abduction - Whoever by force compels or by any deceitful means includes any person to go from any place, is said to abduct that person. This is an offence committed against a person of any age. Abearance - Behaviour; conduct. Abessive - Denoting absence of a case. Abet - To aid to commit an offence. Abettor - One who encourages or aids the offender or commission of an offence. Abeyance - The condition of an

Introduction ‘Capacity to Contract’ means competency of the parties to enter into a valid contract. Competency of the parties is an essential element of a valid contract.  According to Section 10 of the Contract Act, “all agreements are contracts if they are made by free consent of parties competent to contract." Thus Section 10 requires parties to be competent to contract. Section 11 of the Contract Act declares that a person is incompetent to contract under the following circumstances: 1. If he is a minor, according to the law to which he is subject. 2. If he is of unsound mind and 3. If he is disqualified from contracting by any law which he is subject. 4. Incapacity to contract may arise out of mental deficiency and status. Incapacity arising out of mental deficiency may be due to minority, idiocy, lunacy or drunkenness. Incapacity arising out of status may be divided into political or civic, professional, artificial or corporate, and married. Position of a Minor

Meaning The doctrine of privity of a contract is a common law principle which implies that only parties to a contract are allowed to sue each other to enforce their rights and liabilities and no stranger is allowed to confer obligations upon any person who is not a party to contract even though the contract have been entered into for his benefit.  For example- If A makes a promise to deliver some goods to B. Then in this case, if A breaches the contract then only B has a right to prosecute him and no other person can prosecute him. Essentials of Privity of contract 1. A contract has been entered into between two parties:-  The most important essential is that there has been a contract between 2 or more parties. 2. Parties must be competent and there should be a valid consideration:-  Competency of parties and the existence of consideration are pre-requisites for application of this doctrine. 3. There has been a breach of contract by one party:-  Breach of contract by one Party

Section 25 defines exceptions to rule an agreement without consideration is void- An agreement made without consideration is void, unless – (1) it is expressed in writing and registered under the law for the time being in force for the registration of documents, and is made on account of natural love and affection between parties standing in a near relation to each other; or unless. (2) it is a promise to compensate, wholly or in part, a person who has already voluntarily done something for the promisor, or something which the promisor was legally compellable to do; or unless. (3) it is a promise, made in writing and signed by the person to be charged therewith or by his agent generally or specially authorised in that behalf, to pay wholly or in part debt of which the creditor might have enforced payment but for the law for the limitation of suits. In any of these cases, such an agreement is a contract. Explanation 1 : Nothing in this section shall affect the validity, as be

Introduction An offer, an acceptance of the proposal and their revocation to be complete, must be communicated properly as per provisions made in law. These provisions are contained in Sections 3-6 of Indian Contract Act, 1872. Communication of proposals, their acceptance, revocation and acceptances, respectively, are deemed to be made by an act or omission of the party proposing, accepting or revoking, by which that the party intends to communicate such proposal, acceptance or revocation of which has the effect of communicating it [Section 3]. Thus a proposal, its acceptance or revocation may be communicated by conduct or by words written or spoken. When the contracting parties are face to face and negotiate in person there is instantaneous communication of offer and acceptance. But where services of the post offices are utilized for communication, the following rules as laid down in Sections 4 and 5 will apply. Communication of Offer Section 4 of the Indian Contract Act 187