What is a contract?

A contract is an agreement between parties that creates mutual obligations that are enforceable by law. It is a binding agreement between two or more parties.It can also be described as "a set of enforceable promises, either written or oral."

For example,

1) When we buy a product at a store, we are entering into an agreement to purchase whatever it is we are purchasing.

2) When we get a new job, we sign an employment agreement to start work.

According to Section 2(h) of the Indian Contract Act, 1872

Contract is defined as an agreement enforceable by law.

From this definition, we find that a contract essentially consists of two elements i.e. an agreement and legal obligation i.e. a duty enforceable by law.

According to Pollock, Every agreement and promise enforceable by law is a contract.

According to Salmond, A contract is an agreement creating and defining obligation between two or more persons by which rights are acquired by one or more to act or forbearance on the part of others.

According to Cambridge Dictionary, Contract is a legal document that states and explains a formal agreement between two different people or groups, or the agreement itself.

THE INDIAN CONTRACT ACT, 1872

The Indian Contract Act of 1872, which dates back to that year, is one of the nation's first laws governing business. On September 1st of same year, the Indian Contract Act 1872 was passed. Except for Jammu & Kashmir, practically all of India's states were covered by the statute.

The primary legislation governing all contracts made in India is Indian contract law. The law is broken down into 266 sections. In the upcoming articles, we shall learn more about them.

WHAT IS THE PURPOSE OF A CONTRACT?

Contracts are like promises that people make to each other and legally bind themselves to follow. They help ensure fairness, protect rights, and provide a way to resolve disputes if promises are broken.

Contracts are made between two or more people, like a promise or agreement. They can be made between individuals, companies, or even governments. It's a way for people to agree on what they will do and what they expect from each other.

Porul