Join Your Exam WhatsApp group to get regular news, updates & study materials HOW TO JOIN

Interpretation of the Indian Contract Act, 1872

Interpretation of the Indian Contract Act, 1872

Any commercial activity requires ‘understanding’ among people concerned. This understanding is often reduced into writing to give effect to the intention of the parties. Such formal versions are known are contracts. These contracts define the rights and obligations of various parties

The Indian Contract Act, 1872 codifies the legal principles that govern ‘contracts’. The Act basically identifies the ingredients of a legally enforceable valid contract in addition to dealing with certain special type of contractual relationships like indemnity, guarantee, bailment, pledge, quasi contracts, contingent contracts etc.

Meaning of Interpretation –

The art or process of discovering and expounding the intended signification of the language used in a statute, will, contract, or any other written document, that is, the meaning which the author designed it to convey to others is called as Interpretation.

Interpretation Clause of the Indian Contract Act, 1872 –

Section 2 of the Indian Contracts Act, 1872 contains the rules of interpretation.

In this Act the following words and expressions are used in the following senses, unless a contrary intention appears from the context:—

(a) When one person 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, he is said to make a proposal.

(b) When the person to whom the proposal is made signifies his assent thereto, the proposal is said to be accepted. A proposal, when accepted, becomes a promise.

(c) The person making the proposal is called the “promisor”, and the person accepting the proposal is called the “promisee”.

(d) When, at the desire of the promisor, the promisee or any other person has done or abstained from doing, or does or abstains from doing, or promises to do or to abstain from doing, something, such act or abstinence or promise is called a consideration for the promise.

(e) Every promise and every set of promises, forming the consideration for each other, is an agreement.

(f)  Promises which form the consideration or part of the consideration for each other are called reciprocal promises.

(g) An agreement not enforceable by law is said to be void.

(h) An agreement enforceable by law is a contract.

(i) An agreement which is enforceable by law at the option of one or more of the parties thereto, but not at the option of the other or others, is a voidable contract.

(j)  A contract which ceases to be enforceable by law becomes void when it ceases to be enforceable.

Interpretation of the Indian Contract Act, 1872

cakart

cakart

At CAKART www.cakart.in you will get everything that you need  to be successful in your CA CS CMA exam – India’s best faculty video  classes (online or in pen drive) most popular books of best authors  (ebooks hard copies) best scanners and all exam related information  and notifications.Visit www.cakart.in and chat with our counsellors  any time. We are happy to help you make successful in your  exams.

www.cakart.in.

www.cakart.in.

Click here to download FREE CA CS CMA books.

Leave a comment

Your email address will not be published. Required fields are marked *