LAW OF

CONTRACTS I
THE CONCEPT OF CONTRACT
WHY WE NEED
CONTRACT???
NEED OF A CONTRACT = A SIGN OF
DISTRUST

ELIMINATE THE
PROBLEMS
GENESIS AND HISTORY OF THE
CONCEPT OF CONTRACT LAW:
GLOBAL PERSPECTIVE

Product of business civilization

Modern contract law is a

creature of 19th century

INDUSTRIALIZATION
HISTORY IN INDIA
Hindu law and muslim
law
Indian law commission
1855
Finally 1872 Indian
Contract Act 1872
SIGNIFICANCE OF CONTRACT IN A
COMMERCIAL DEVELOPING
SOCIETY

Voluntary agreements
becomes impractical and
unworkable without a
contract.
IMPORTANCE OF A WRITTEN
CONTRACT
DRAFTING OF
CONTRACT
 SANCTITY OF EFFICIENT BREACH
CONTRACT THEORY

Once parties duly A general idea that

enter into a contract parties should feel free
they must honor tobreach of
their obligations contractand
under that contract paydamages, so long
as this result is more
economicallyefficientth
an peforming under the
contract.
DIFFERENCE BETWEEN TORT LAW
AND CONTRACT LAW
Q1: A has obtained a water drum from B
on a contract with a condition to return it
within two days. A has not delivered
water drum to B after two days

Q2: A is the car owner. B has taken As

car on hire. There is a contract between
A and B. From B , C has taken the car
and damaged it.
INDIAN CONTRACT ACT, 1872- came into
force on 1st sept, 1872
Whole of india except jammu & kashmir
XI chapters
ICA,187
2

Special
General contract
principle s
s (1-75) (124-
238)