The Indian Contract Act, 1872 forms the foundation of commercial and civil obligations in India. It governs how promises made […]
The Indian Contract Act, 1872 forms the foundation of commercial and civil obligations in India. It governs how promises made between parties become legally enforceable agreements and defines the rights, duties, and remedies that arise when those agreements are breached. This law establishes the essential principles of offer, acceptance, consideration, free consent, and capacity to contract, ensuring that all valid contracts are formed with fairness and clarity.
These contract law notes provide a structured overview of the major topics under the Act, including agreements, consideration, free consent, performance, discharge, and breach of contract. They also cover special forms of contracts such as indemnity, guarantee, bailment, pledge, and agency, helping learners understand how contractual relationships operate in both personal and business contexts.
Key points
The Indian Contract Act, 1872 governs all contracts in India — commercial, employment, property and personal agreements.
A valid contract requires six elements: offer, acceptance, consideration, capacity, free consent and lawful object.
Section 27 voids agreements in restraint of trade. This is why post-employment non-competes are unenforceable in India.
Sections 73 and 74 govern damages for breach. Section 74 gives courts discretion to award less than the agreed liquidated damages figure.
Special contracts — indemnity, guarantee, bailment, pledge and agency — are covered in Sections 124 to 238 and operate on different principles from ordinary agreements.
Discharge of a Contract (Section 37 to 67, Indian Contract Act)
Topic
Link To Notes
Discharge of a Contract under Indian Contract Act – By Performance– Performance by Joint Promisors– Discharge by Novation – Remission– Accord and Satisfaction– Discharge by Impossibility of Performance – Doctrine of Frustration– Discharge by Breach – Anticipatory Breach – Actual breach
