A Detail History of Contract and Distinguish From Agreement

HISTORY AND NATURE OF CONTRACT ACT

A-Detail-History-of-Contract-and-Distinguish-From-Agreement

LAW:  A Body of rules of conduct of binding legal force and effect, laid down, recognized, and Implemented by controlling authority.

Controlling authority: Appropriate government means center or state government.

Government: Govt. can be defined as the institution or institutions that retain the essential authority to rule a society.  Or A Govt. is a system by which a state or community is managed.

Law is divided into two types:

Substantial LawProcedure Law
Substantial Law creates rights, duties, and obligations between the parties.Procedure Law: it Implements the procedure for Substantial law.
Example: Contract, IPC, Hindu law, Muslim law, etc.Example: Code of Criminal Procedure, Code of civil procedure, Evidence Act, etc

Two different types of law are classified:

1.   Codified law: Contract, IPC, Cr. PC, CPC, etc.

2.   Non- Codified law: Muslim Law, Hindu law, Jurisprudence Etc.

 Now, a Contract is substantive codified law. It is the most important branch of Mercantile or commercial law. This is related to the day-to-day sale of general people.

 Father of Contract: Sir William R. Anson

   The Indian Contract Act was legislated on 25 April 1872 and came into force on September 1, 1872. It is grounded on the principles of English Common Law.

The Act as passed primarily had 266 Sections, it had an extended scope and

  1. General Principles of Law of Contract – Sections 01 to 75   
  2. A contract relating to Sale of Goods – Sections 76 to 123·        
  3. Special Contracts- Indemnity, Guarantee, Bailment & Pledge, and Agency – Sections 124 to 238
  4. Contracts relating to Partnership – Sections 239 to 266

 At present the Indian Contract Act may be divided into two parts:

·   Part 1: deals with the General Principles of Law of Contract Sections 1 to 75

·   Part 2: deals with Special kinds of Contracts similar as

1.  Contract of Indemnity and Guarantee

2.  Contract of Bailment and Pledge  

 3. Contract of Agency.

 Object and function: object of contract law is to regulate the combined sale between the parties. The object & function of the law of contract is to see that, as far as possible, the expectances created by the vows of the parties are fulfilled and liabilities specified by the agreement of the parties are executed.

Ex. Gold or wheat at a fixed price sells.

A brief history in India:

  1.  In the Vedic period: Deals are based on Religion. (King)
  2. In Pauranik Era:  Vidhya (Vishnupuran)- 4 type
    1. Tarkashastra
    1. Karmakanda
    1. Dandneeti
    1. Varta
  3. Before Mugal Emperor: It was organized by Dharmashastra, Manusahimta, etc.
  4. During the Mugal Period: Development of Muslim law…Contract- Aqd means Bandhan
  5. In the British period: In the Royal Charter of 1726 Mayor Courts were established in the presidency city of Calcutta, Madras, and          Bombay. It was based on English Common Law predicated on the principles of –Justice, Equity, and Good conscience.
  6. But in 1781 in Calcutta –Established Supreme Court
  7. And in 1797 Bombay and Madras- Established Recorder courts

The Indian Contract Act, 1872:

  • Charter 1833- Law commission (uniform civil code)
  • In 1835 – The first law Commission –After some Recommendations-
  • In 1853 – Second Law Commission
  • In 1861 –Third Law Commission – Repeal-
  • Present Draft on the contract of law and report in 1866
  • In 1867- After some amendments
  • Eventually in 1872 (Act no. 9) The Indian Contract Act:
  • Enact: 25 April 1872
  • Enforce: 1 September 1872
  • It has 6 chapters and 75 sections.

Description of Contract: According to the Indian Contract Act;

Sec.2(h): An agreement enforceable by law is a contract.                                                                          

  1. Sir John Salmond: An agreement creating and defining liabilities between the parties.
  2. Anson: A contract is an agreement enforceable by law made between two or more persons by whom rights are required by one or more to act or forbearance on the part of others or others.

Difference Between Agreement And Contract

ContractAgreement
A contract is an agreement that is enforceable by law.A promise or several promises that are not contradicting and are accepted by the parties involved in an agreement.
A contract is only legally enforceable.An agreement must be socially acceptable. It may or may not be enforceable by the law.
A contract has to create some legal obligation.An agreement doesn’t create any legal obligations.
All contracts are also agreements.An agreement may or may not be a contract.

 

This article also available in Hindi also संविदा का एक विवरण इतिहास और अनुबंध से भेद.
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