Indian Contract Act, 1872

Section 2(h) defines a contract as an agreement enforceable by law.

The Indian Contract Act, 1872 came into force on 1 September 1872.

Section 2(a) defines a proposal or offer.

Under Section 2(b), a proposal when accepted becomes a promise.

The person who makes the proposal is the promisor, while the person accepting it is the promisee.

Consideration is something done or promised to be done at the desire of the promisor and represents something in return for a promise.

Section 2(e) defines an agreement as every promise and every set of promises forming consideration for each other.

Section 2(g) defines a void agreement as an agreement not enforceable by law.

Section 2(i) describes a voidable contract as enforceable at the option of one party but not at the option of the other.

A general offer is made to the public at large.

A counter offer occurs when the offeree changes the terms of the original offer instead of accepting it as made.

Acceptance must be absolute and unconditional. A change in terms generally amounts to a counter offer rather than acceptance.

Mere silence is not acceptance unless there is a duty to speak or circumstances that make silence legally significant.

In India, consideration can move from the promisee or any other person.

Consideration can be past, present, or future under the Indian Contract Act principles described in the material.

Consideration is unlawful when, among other things, it is forbidden by law, fraudulent, immoral, causes injury, defeats provisions of law, or is opposed to public policy.

A competent person must not be a minor, must be of sound mind, and must not be disqualified by law.

Coercion involves using or threatening unlawful force.

Fraud involves intentional deception.