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Are you entering into a contract?

We frequently enter into various kinds of agreements with other persons, however not all of these agreements are backed by legal sanction. Agreements, which create legally enforceable rights and obligations between the persons who draw up the agreement, are known as contracts. Generally a contract consists of an offer made by one person, which is accepted by another person with the intention of creating certain legally binding obligations between themselves.

The law governing contractual relations in India is The Indian Contract Act, which was enacted in 1872 based on the English common law. The Contract Act may be divided into four parts:
A. General principles of contract
B. Indemnity and Guarantee
C. Bailment and Pledge and
D. Agency
Two other acts, which also cover aspects of contracts between parties, are the Sale of Goods Act and the Specific Relief Act. This section will cover only the general principles of contract law.

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