Formation of Contract

Formation of Contract

Author Name : Ima Ansari

INTRODUCTION The law of contract is the child of commerce. It confines itself to voluntarily created mutual obligations between the parties. The Parties to a contract make the law for themselves subject to some legal limitations and prohibitions. The essential part of the contract is that the promises are protected and enforced. We enter into many contracts in our day to day life. We purchase goods for our daily use, we hire bus to reach the destination, we take loan from the banks, in all these and many other transactions, we enter into contracts. The law of contract does not lay down rights and duties which the law will enforce; it consists rather of a number of limiting principles, subject to which the law will upheld. A person is only entitled to enforce his contractual rights in a reasonable way and the court will not support an attempt to enforce them in an unreasonable way. In India, the law of contract is governed by the Indian Contract Act, 1872, (hereinafter referred to as the Act). The Act came into force w.e.f September 1, 1872.