Agreement, bond, indenture, deal, are some of the terms which are almost known to all but is it known that these terms implicate towards “contracts”. All the aforesaid are nothing but the synonyms for the term contract. These contracts have been evident since the ancient period when man was well versed with the batter system of exchanging goods in return for other. The batter system can be said to be one such schemes wherein the parties to the deal were unknowingly seen to follow the concept of “offer” and “acceptance”. These terms constitute the basis on which the Indian Contracts Act, 1972 stands. Under this statue the first chapter deals with the concept of offer, acceptance and revocation of proposals.
In the day-day events the lay man comes across many such incidents which either directly or indirectly a form of contract. For illustration, consider an ordinary sale-purchase situation between a buyer and a seller. The buyer is a woman and on other hand the seller is a vegetable vendor. The buyer approaches the seller with a view to buy some potatoes and the seller in return sells the potatoes for a consideration. In this illustration the offer is about purchase of potatoes and the acceptance is the sale of potatoes for consideration. It is to be noted that every proposal does have a consideration behind it, the motive of this consideration it that which makes a contract either legal or illegal. In the general context the consideration involved in contracts is in monetary form.
Under the Indian Contracts Act, 1972 the section 11 also constitutes an important role in the whole of the scenario. It is under this provision of the Act that speaks of the parties to a contract, their eligibility to contract, grounds for not being qualified. As the times pass by every concept in law it exposed to evolution. Recently there has been a swift increase cases related to consumer protection, in this context it is the conflict between the parties that causes these disputes or is there any other breach, is the actual point to analyze. Non performance of the terms of the contract would amount to breach of such contract made by the parties; same is the situation when there is consumer dispute. The consumer approaches the service provider with anticipation of hiring or either getting the services rendered, the service provider puts forth his offer to the requirement of the consumer which form the essence of the contract and acceptance of the consumer indicates that both the parties have entered into a contract. Any breach as a result of this contract between the parties leads to a consumer dispute, highlighting the provisos of the Consumer Protection Act, 1986. Disputes regarding Medical Negligence, Loan Disputes etc are an evident fact of such breach in the contracts between the parties. It is seen that under the law there is no necessity for the expressed consent towards entering into contract; the consent may be implied also.
The successful termination of contracts depends upon factors such as, willful termination of contract, on completion of respective obligations on the part of the parties to contract, breach of the terms of the contract, incapacity of the parties to enter into contract. Breach of legally bound duty in terms of contracts would raise a dispute which is further at remedy available under law, in the form of compensation (Civil Law). Contracts, today has evolved and seen almost every where, for the common man it is visible in every act he/she does every day and on the other hand it is seen every day in the news papers in the form of Tenders, invitation to Works Contracts etc.
If common man is able to understand the basics such as offer and acceptance, parties to contract, consideration behind contracts, aspects which constitute the legality of the contract are sufficient enough to deal with situations wherein the common man has to take legal decisions regarding contracts. Therefore, the law of contracts is knowingly or unknowingly forming the basic crux of the day- day commercial activities of the common man.
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Tags :Civil Law
