The Indian Contract Act, 1872, is a crucial piece of legislation that governs the law of contracts in India. Here is a list of 50 important terms from the Act along with their meanings:
| 1. Contract: An agreement that creates legal obligations between two or more parties. |
| 2. Offer: A proposal made by one party to another, expressing the willingness to enter into a contract. |
| 3. Acceptance: The expression of assent by the offeree to the terms of the offer. |
| 4. Consideration: Something of value given by each party to the contract, which forms the basis for the agreement. |
| 5. Free Consent: Both parties must enter the contract willingly and without any coercion, undue influence, fraud, or misrepresentation. |
| 6. Void Contract: A contract that has no legal effect from the beginning and is not enforceable by law. |
| 7. Voidable Contract: A contract that is valid but can be voided at the option of one or more parties due to certain legal defects. |
| 8. Contingent Contract: A contract based on the occurrence of a specific future event. |
| 9. Express Contract: A contract where the terms are explicitly stated, either orally or in writing. |
| 10. Implied Contract: A contract where the terms are inferred from the conduct or actions of the parties. |
| 11. Quasi Contract: An obligation imposed by law to prevent unjust enrichment even when no actual contract exists. |
| 12. Unilateral Contract: A contract where only one party makes a promise to perform an act, and the other party accepts by performance. |
| 13. Bilateral Contract: A contract where both parties exchange mutual promises to perform specific acts. |
| 14. Executed Contract: A contract in which both parties have fulfilled their respective obligations. |
| 15. Executory Contract: A contract in which one or both parties are yet to perform their obligations. |
| 16. Counteroffer: A new offer made by the offeree in response to the original offer, thereby rejecting the original offer. |
| 17. Invitation to Treat: A preliminary communication inviting offers without creating a legal obligation. |
| 18. Revocation: The withdrawal of an offer before it is accepted. |
| 19. Consideration is Necessary: Every contract must have consideration for it to be valid. |
| 20. Lawful Object: The purpose of the contract must not be illegal, immoral, or against public policy. |
| 21. Capacity to Contract: Parties entering into a contract must be of sound mind and not disqualified by law. |
| 22. Minor: A person who has not attained the age of majority and is incompetent to contract. |
| 23. Coercion: The use of force or threat to make someone enter into a contract against their will. |
| 24. Undue Influence: Unfair persuasion exerted by one party over the other, exploiting the relationship between them. |
| 25. Fraud: Intentional misrepresentation or concealment of facts to deceive the other party. |
| 26. Mistake: An erroneous belief held by one or both parties at the time of contract formation. |
| 27. Unlawful Consideration: Consideration that involves illegal activities or is against public policy. |
| 28. Restraint of Trade: A contractual clause that restricts a person’s freedom to carry on a lawful profession, trade, or business. |
| 29. Time is of the Essence: A clause indicating that time limits in the contract are crucial and must be strictly adhered to. |
| 30. Frustration of Contract: When an unforeseen event occurs, rendering the contract impossible to perform. |
| 31. Novation: The substitution of an existing contract with a new one, with different terms or parties. |
| 32. Bailment: Transfer of goods from one person (bailor) to another (bailee) for a specific purpose and duration. |
| 33. Pledge: A bailment of goods as security for repayment of a debt or performance of a promise. |
| 34. Indemnity: A promise to compensate for any loss or damage suffered by the promisee. |
| 35. Quantum Meruit: A reasonable sum payable for services or goods even if there is no fixed contract price. |
| 36. Lien: A right to retain possession of another person’s property until a debt or claim is satisfied. |
| 37. Guarantee: A contract where one person agrees to be liable for the debts or obligations of another person. |
| 38. Warranty: A promise given by the seller about the quality and performance of goods being sold. |
| 39. Anticipatory Breach: A situation where one party indicates their intention not to perform their obligations before the performance is due. |
| 40. Liquidated Damages: A pre-estimated amount of compensation agreed upon by the parties in case of a breach. |
| 41. Specific Performance: A court order requiring a party to fulfill their contractual obligations. |
| 42. Reciprocal Promises: Mutual promises made by the parties, forming the basis of a contract. |
| 43. Agreement Expressly Declared Void: Certain agreements, specified in the Act, which are considered void. |
| 44. Past Consideration: Consideration for a promise based on a prior act or service done before the promise was made. |
| 45. Section 10: Section of the Indian Contract Act that deals with the elements of a valid contract. |
| 46. Section 23: Section of the Act that specifies which considerations and objects are unlawful. |
| 47. Section 56: Section of the Act that deals with the doctrine of frustration. |
| 48. Section 73: Section of the Act that deals with the measure of damages in case of a breach of contract. |
| 49. Section 74: Section of the Act that allows the courts to grant compensation in case of a breach of contract. |
| 50. Section 126: Section of the Act that deals with the rights and liabilities of a surety. |
CA Rakesh Agarwalla
Founder, Agarwal Coaching Centre
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