Law of Contract I
General Introduction. The word Contract is derived from Latin word Contractus which means “to work on a contract.” The law of contract is based on principle laid down on Pacta Sunt Servanda which means “Agreement to be kept” or pact must be kept. According to Sir William. The law of contract is intended to ensure that what has led to expect shall come to pass and what has been promised to him shall be performed. The law of contract thus not only lay down a number of rights and duties which the law will enforce, it consists of a number of limiting principles subject to which the parties may create rights and duties for themselves which the law will uphold. The parties to a contract in a sense make a law for themselves. Essentials of a Valid Contract. Section 2(h) of the Indian Contract Act 1872 defines the term contract as an “agreement enforceable by law.” As per section 2(e) every promise and every set of promises forming the consideration with each other is called an agreement. ...