Contract Act CHAPTER 1 : Introduction of Contract

Transcript:Contract Act CHAPTER 1 : Introduction of Contract:
Contract Act CHAPTER 1 : Introduction of Contract and kinds of contract Law The term ‘Law’ denotes set of rules and regulations, which govern the social conduct and which can be enforced through the courts. ‘Law’ has been one of the most effective instruments for control of social relations and transactions from the ancient times. According to Salmond, “Law is the body of principles recognized and applied by the state in the administration of justice.” essential characteristics of law Law presupposes a state. The state makes law as a rule relating to the actions of human beings. The law aims to regulate the external actions of human beings Law is enforced by the State. Law is applied in administration of justice. Law applies to all without discrimination, including the state, which itself is regulated by law Law is always supreme. Sources of Law Statutes having their source in legislation made by the State; Customs and precedents, which over a period of time become as good as law; Common law, which though originated in the Great Britain, has now been well absorbed into the Indian legal system; International treaties and agreements; Judicial decisions and precedents; Miscellaneous e.g. juristic writings, literary works, foreign decisions etc. WHAT IS BUSINESS LAW? According to S.R. Davar, business law “means that branch of law which is applicable to or concerned with trade and commerce in connection with various mercantile or business transactions.” As per Slater, “The phrase Mercantile Law or Commercial Law is generally used to denote those portions of the law which deal with the rights and obligations arising out of transactions between mercantile persons.” Sources of Business Law The Lex Mercantoria, i.e. the Law Merchant, which emanated from the customs and usages, which are binding on traders in their dealings with each other. The Statute Law, which is derived from the legislation or enactments or the subordinate legislation made by the legislative bodies. The Common Law, which include the principles of law evolved by the judges in making decisions on cases that are brought before them. The Principles of Equity, which are neither the customs nor codified law, but are imperative dictates of conscience and have been set forth and developed in the Court of Chancery. Contract According to Salmond, “a contract is an agreement creating and defining obligation between the parties.” Sir William Anson says, "A contract is an agreement enforceable by law,