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(a)  Contract.

Quasi contracts are those contracts which are created neither by words spoken, nor written, nor by the conduct of parties, but these are created by law and legal obligation is imposed on the party who is required to perform it.

The word ‘contract’ has its origin from the Latin word ‘Contractum’, which means to draw together, combine, make an agreement. Contract is a voluntary, deliberate, legally-binding agreement between two or more competent parties, which defines the legal obligation and authorities of parties.

According to Sir William Anson ; 

“A legally binding agreement between two or more persons by which rights are acquired by one or more to act or forbearance on the part of others.”

Section 2(h) defines a contract as an agreement enforceable by law. Contract consists of two essential elements : 

1. An agreement, 

2. Enforceability by law. 

According to section 10 of Indian Contract Act, 1872, the juristic concept of contracts consists of proper offer and acceptance.

Difference between Contract and Agreement

When a person is compelled to enter into a contract by the use of force with the other party or under threat or to do any act forbidden by the Indian Penal Code, coercion is said to be employed. 

Example : 

If one person compels other person by physical violence to sign an agreement of ₹ 50,000, it is said that coercion is employed by person against other to sign an agreement.

A person is said to have made an offer when he signifies to another his willingness to do or to abstain from doing anything with a view to obtaining the assent of that other to such act or abstinence. In other words, an offer is a proposal by one party to another to enter into a legally-binding agreement with it. 

Example : 

X offers Y his car for ₹ 1,50,000. Now, it is upto Y whether he accepts his offer or wants to make any changes in that.

1. Presence of two or more parties, 

2. Agreement, 

3. Intention to create legal relationship, 

4. Contractual capacity, 

5. Free and genuine capacity.

According to sec. 10 of Indian Contract Act, 1872, the juristic concept of contract consists of a proper offer and its acceptance. An agreement is every promise and every set of promises, forming consideration for each other (Section 2C). An agreement in order to become a contract, must give rise to a legal obligation which means a legal tie which imposes upon a definite person the necessity of doing or abstaining from doing a definite act or acts.

(a) 1st September, 1872.

A contract is said to be induced by undue influence where the relationship subsisting between the parties is such that one of the parties is in a position to dominate the will of the other and uses that position to obtain an unfair advantage upon the other.

(c) Both (a) & (b)

1. Principles of Contract and Quasi Contract, [Sections 1 to 75]. 

2. Sale of Goods Act repeated [Sections 76 to 123]. 

3. Contracts of Indemnity and Guarantee related problems [Sections 124 to 147]. 

4. Provisions related to contract of bailment & pledge [Section 148 to 181]. 

5. Provisions related to agency contract [Section 182 to 238].

According to Section 10 of Indian Contract Act, 1872, an agreement, in order to become a contract, must give rise to a legal obligation which means a legal tie which imposes upon a definite person or persons the necessity of doing or abstaining from doing a definite act or acts. An agreement must give rise to a legal obligation in order to become a contract.

When any offer is given to the person and he accepts it without any pressure, then that offer becomes an agreement between two parties. Thus, agreement includes the offer and acceptance of two parties for a mutual objective. When that agreement is legally bound or has a legal obligation, it becomes a contract. If it doesn’t have a legal obligation, it will never become a contract. It will be said to be an agreement only. 

For example : 

A husband offers his wife a weekend movie plan, his wife accepts it, but due to some official work, husband is unable to execute it, or wife refuses it or they mutually cancel the program, but in this type of agreement, both of them can’t take any legal action as it is only a social agreement between a couple, which doesn’t have any legal obligation.

The word contract comes from the Latin word ‘Contractum’, which means to draw together, combine, make an agreement. Therefore, a contract is a voluntary, deliberate, legally-binding agreement between two or more competent parties, which defines the legal obligation and authorities of parties.

To maintain an environment of peace and harmony, law and order, for economic, social, political, educational, religious, technical development of a nation, its government, society and other classes perform several activities through customs, traditions, law, by-laws, so that there can prevail complete peace and order and effective administration and the resources can be creatively utilized for nation’s maximum benefits. To make all these efforts systematic, effective and regulated, we need certain system of laws.

Basic Principles of Contract and Quasi Contract.

Indian mercantile law owes its origin to the English mercantile law. The sources of English mercantile law are common law, equity law, merchant and statute law. The common law of England or the judge-made law (the unwritten law of England that consists of judicial decisions and customs) is the preliminary source of Indian law.

Agreement + Enforceability by Law = Contract.

The Indian Partnership Act was enacted in 1932.  

1. The first essential element is the presence of two or more parties to enter into an agreement/contract. 

2. To form a contract, there must be an agreement between two parties. 

3. When the two parties enter into an agreement, their intention must be to create a legal relationship between them. 

4. An agreement becomes a contract if it is entered into between the parties who are competent to contract. 

5. It is essential for the creation of every contract that there must be a free and genuine consent of the parties. 

6. There should be a lawful consideration, which means ‘something in return for both the parties. 

7. The object of the agreement must be lawful. 

8. There should be certainty in a contract. 

9. Possibility of performance. 

10.Agreement shouldn’t be void. 

11.Legal formation should be there.

1. Indian Contract Law, 1872. 

2. The Sale of Goods Act, 1930. 

3. The Indian Partnership Act, 1932. 

4. The Negotiable Instrument Act, 1882, 

5. The Arbitration Act, 1940. 

6. The Companies Act, 2013. 

7. The Banking Regulation Act, 1949. 

8. The Consumer Protection Act, 1986. 

9. The Essential Commodities Act, 1955. 

10.The Industrial Law. 

11.The Labour Act. 

12.The Insurance Act, 2015. 

13.Foreign Exchange Management Act, 1999.

 14.The Securities Exchange Board of India Act, 1992. 

15.Patent, Trademarks and Copyright Act. 

16.Information Technology Act, 2000. 17.Carriage of Goods Law.

1. The Sale of Goods Act, 1930. 

2. Indian Contract Act, 1872. 

3. The Indian Partnership Act, 1932. 

4. The Companies Act, 2013.

• English common law : 

It is the preliminary source of Indian law. Indian mercantile law owes its origin to the English mercantile law. The sources of English mercantile law are common law, equity law, merchant and statute law. The common law of England or the judge-made law It is the unwritten law of England that consists of judicial decisions and customs.

• Judicial decisions : 

Keeping in view the present situation the verdicts/decisions made by the Supreme Court on new issues and emerging debates on them are used as examples by lower courts while taking decisions.

The following are the main sources of Indian Contract Law : 

(i) English common law :

Indian Mercantile law owes its origin to the English Mercantile law. The sources of English mercantile law are common law, equity law, merchant and statute law. The common law of England or the judge-made law (is the unwritten law of England that consists of Judicial decisions and customs), is the preliminary source of Indian Law.

(ii) Acts enacted by Indian Legislature :

The greater part of Indian Business / Mercantile law is legislature-enacted Acts enforced by the Indian Parliament, and these are source of law, which makes it possible to bring uniformity in Indian laws. Changes according to the demand of circumstance can be brought in Indian law effectively by legislative amendments.

(iii) Judicial decisions or Judicial precedent :

Keeping in view the present situation, the verdicts / decisions made by Supreme Court on new issues and emerging debates on them are used as examples by lower courts while taking decisions.

(iv) Customs and Trade usages :

Customs and trades become binding when certain prerequisites are fulfilled. Then the custom is recognised by courts and it becomes legal obligation. In fact, the codified law of India has given superseding powers to the customs and usages.

(v) Justice, equity and good conscience :

In absence of any rule of a statutory law or custom or personal law on a particular point arising before the courts, the courts apply the doctrine “Justice, equity and good conscience”, which means that in its substance and in circumstances, the rule of English law is applicable to Indian society and circumstances.

Business Law is the body of law that applies to the rights, relations and conduct of persons and businesses engaged in commerce, merchandising, trade and sales. 

According to S. R. Davar :

“Mercantile law means that branch of law which is applicable to or concerned with trade and commerce in connection with various mercantile or business transactions”.

(d) All of these.

No, all agreements are not contracts.

The contract which creates legal obligation between the parties is a valid contract or an agreement which is enforceable by law is a valid contract.

S. R. Davar.

A contract is an agreement enforceable by law.

1. An agreement. 

2. Enforceability by law.

An agent is a person who is employed to do any act for another (principal) or to represent another in dealing with third persons.

When an agreement between two parties has a legal objective, then that agreement is said to be legal, but in case the agreement between the parties doesn’t have a legal objective, or any essential elements are missing, like free consent, etc. or in any way it harms the national property or national interest, then such agreement can never be termed as a legal agreement.

The object must be lawful, it must not be illegal, immoral or opposed to public policy.

Consent is said to be free when it is not caused by misleading misrepresentation, fraud, coercion, etc.

It is an agreement without any legal effect and cannot be enforced in a court of law.

English Common Law.

It means that the terms of agreement should be such that parties are capable of performing them. An agreement to do an act impossible in itself cannot be enforced.

When Indian Contract Act was formed, it included 266 number of Sections.

The Companies Act reformed was in 2013.

Information Technology Act enforced was in 2000.

Obligation means a legal tie, which imposes upon a definite person or persons, the necessity of doing or abstaining from doing a definite act or acts.

“Every agreement and promise enforceable by law is a contract.”

A contract in which both the parties commit to perform their respective promises.

It means ‘something in return’. The agreement is legally enforceable only when supported by consideration, i.e. when both the parties give something and get something in return.

Yes, Indian Contract Act is a part of commercial law.

A contract in which both the parties have fulfilled their obligations under the contract.

1. One who is not a minor. 

2. Not of unsound mind. 

3. One who is not disqualified by any law which he is subject to.

Those agreements which are enforceable by law are called contracts. 

Indian Contract Act is formed keeping in mind Indian environment, customs, business practices and other special situations. But where Indian Contract Act has uncertain circumstances there Indian judicial court take the help from English common law.